Management Pensions

[Catatonic]

Using your comments here, when I plugged numbers into retirement calculator and changed years of service and age at retirement, It always was adding like a 3% per year increase in salary amount. That is incorrect. That would change your best 5 in 10 years especially if you would be one of the operations people who had been talked to about making too much in their pay grade or band and would not be getting a raise for the next few years at least. Big reduction, and including the lower MIP awards that makes a difference. No reason to stay and put up with the grief. There are ways to supplement income for your benefit. Not to mention additional cuts in operations that have been low key but still a big issue for more with less......and for less money. Never know where you would end up. Not the way to spend your supposed last good years.

Last year was above average for MIP ... this year (1.4) was only a little less than average.

As for the calculations on the retirement calculator, you can believe what you want. I personally am tired of endless posts about it.
I just pull out my Excel spreadsheet and the numbers are what they are.
And I would like to correct myself.
Retiring at 55 with 35 years of service versus 60 with 35 years of service is over $2000 per month difference.
Staying a year extra in this range = $457/month.
Those are actual numbers taken from the calculator with 0% salary increase and "Joint & 100% Survivor".

 

[QuestionsOnly]

Hoaxster - You seem to be the reputable one to pose this question to.... I've been with UPS for approximately 20 years and have been FT non-union for most of that. On the "Total Rewards Portal" my pension shows a value (as of 2011 not updated) of approximately $25,000. However, if I retired in 10 years with 30 years of service I'd be getting over $4,000/mo or $48,000 a year. The "value" they put on this seems exceedingly low considering my 20 years. Can UPS just buy these pensions out? These last few years....this is the primary reason I've stayed with UPS..(pension) If they offered $25k...it seems a paltry sum compared to $48k a year for the next 30 years of retirement etc...... it doesn't make much sense to me. Any insight? Much appreciated. Thanks.

 

[Catatonic]

Hoaxster - You seem to be the reputable one to pose this question to.... I've been with UPS for approximately 20 years and have been FT non-union for most of that. On the "Total Rewards Portal" my pension shows a value (as of 2011 not updated) of approximately $25,000. However, if I retired in 10 years with 30 years of service I'd be getting over $4,000/mo or $48,000 a year. The "value" they put on this seems exceedingly low considering my 20 years. Can UPS just buy these pensions out? These last few years....this is the primary reason I've stayed with UPS..(pension) If they offered $25k...it seems a paltry sum compared to $48k a year for the next 30 years of retirement etc...... it doesn't make much sense to me. Any insight? Much appreciated. Thanks.

This is the way all pension plans are set up.
UPS, as well as any other pension plan I am aware of, backload the value of the pension plan.
Essentially, the pension accumulation is in the last five years of the "qualification period ... at UPS, that is age 50 - 55.

I remember younger IBM employees were POed when IBM bought them out.
The older employees were fine with it.

 

[QuestionsOnly]

Thank you so much for the prompt reply. This is not reassuring......I wonder what the chances of them buying these out would be for the next 10 or 15 years....the allure of the positions at UPS are largely based on the idea of a guaranteed pension. For the employees with a significant amount of time in....I know we're all counting on that...it would be horrible to get paid off for it instead of actually getting it. It may add 10 years to my work plan before retirement if they did this.

 

[Chief26]

Regarding OPL, the $1.8 billion was returned to UPS. UPS wasn't charged with any crimes. Regarding the pension it compares quite well with many other companies. Ask the management folks from Xerox or Kodak or GE that have retired how they are doing.

 

[beentheredonethat]

Hoaxster - You seem to be the reputable one to pose this question to.... I've been with UPS for approximately 20 years and have been FT non-union for most of that. On the "Total Rewards Portal" my pension shows a value (as of 2011 not updated) of approximately $25,000. However, if I retired in 10 years with 30 years of service I'd be getting over $4,000/mo or $48,000 a year. The "value" they put on this seems exceedingly low considering my 20 years. Can UPS just buy these pensions out? These last few years....this is the primary reason I've stayed with UPS..(pension) If they offered $25k...it seems a paltry sum compared to $48k a year for the next 30 years of retirement etc...... it doesn't make much sense to me. Any insight? Much appreciated. Thanks.

Interesting.. I'm 47, 25 years with UPS also most of it mgmt. My Total rewards show about 88K for my pension value (also as of 2011). So apparently it does rise a bit as we get older. I have heard similar to what Hoaxster has said in that the value really increases at the tail end of our working years. The thing that scares the heck out of me, is if UPS decides to convert it. I'd hate to lose a pension and get only 88K in return.

 

[Catatonic]

Interesting.. I'm 47, 25 years with UPS also most of it mgmt. My Total rewards show about 88K for my pension value (also as of 2011). So apparently it does rise a bit as we get older. I have heard similar to what Hoaxster has said in that the value really increases at the tail end of our working years. The thing that scares the heck out of me, is if UPS decides to convert it. I'd hate to lose a pension and get only 88K in return.

That would indeed suck. Big time.

 

[Popeye]

Thank you so much for the prompt reply. This is not reassuring......I wonder what the chances of them buying these out would be for the next 10 or 15 years....the allure of the positions at UPS are largely based on the idea of a guaranteed pension. For the employees with a significant amount of time in....I know we're all counting on that...it would be horrible to get paid off for it instead of actually getting it. It may add 10 years to my work plan before retirement if they did this.

In 10-15 years I believe the probability of UPS killing the defined benefit pension is close to 100%. The only reason it hasn't happened yet is that the current management committee can't screw us without screwing themselves. As time goes by and the management committee becomes made up of people who fall under the new rules, get ready to kiss your pension goodbye.

 

[Catatonic]

In 10-15 years I believe the probability of UPS killing the defined benefit pension is close to 100%. The only reason it hasn't happened yet is that the current management committee can't screw us without screwing themselves. As time goes by and the management committee becomes made up of people who fall under the new rules, get ready to kiss your pension goodbye.

That is one of the good things about already being retired.
There is a lot of worry and stress on the minds and faces of the people I left behind at UPS.

 

[brownmonster]

That is one of the good things about already being retired.
There is a lot of worry and stress on the minds and faces of the people I left behind at UPS.

Time for them to get rid of the BMW lease payment and put the money in retirement savings instead.

 

[TxRoadDawg]

Never have I ever heard anyone retired say 'dam I wish I coulda worked just one more week for the company...'

 

[BROWNHOG]

Until the profit margins decline while the costs continue to climb, this management team in atlanta will continue to gut the value of management longevity and ability. There is no value added to a management structure that the corporate office believes is generally to old and over paid. Its cheaper to run your management structure into the ground. If they quit..so what. We have always been a company that needed the management team to work 65 hours per week and get paid for 50. The difference now is the culture that in the past recognized this effort and compensated you for it. Now we are a company that by plan and design expects you to work what ever the hours are at considerably less compensation. This group could offer a buyout as has happened over the last 12 years 5 different times, or it can run you into the ground. What do you think is going to happen ?

 

[BROWNHOG]

Im a 39 year management guy. I ;ve had my retirment calculation run 3 seperate times through corporate retirement services in atlanta. Ran it at 55..57 and 58. Under no scenario does my pension amount change. I'd love to see what your using to verify an additional 457 dollars a month. And if you were a teamster for any length of time, ups uses a flat 90 per year for every year you were a teamster and reduces your management pension by 90 $$ x the union years. That 90 dollar amount is re calculated once you get your hours statement from the teamsters which takes about 3 months. 200o a month difference ? Dont see it and cant get any pension formula to verify it.

 

[BROWNHOG]

The calculation % used. Thats the issue. What is the multiplier. ??

 

[BROWNHOG]

5400 per month for a 35 year guy. What planet are you on. Your 1400 to high based on what i am reading sent to me from my friends in atlanta. If i was getting 5400..i am gone right now. Im 58 with over 35 years and 5400 is no where from what i am reading

 

[BROWNHOG]

Im 58 and my retirment benefit doesnt change because i have work 3 years past 55. I am at the top of my salary range as well with 38 years of service..no difference

 

[Catatonic]

Until the profit margins decline while the costs continue to climb, this management team in atlanta will continue to gut the value of management longevity and ability. There is no value added to a management structure that the corporate office believes is generally to old and over paid. Its cheaper to run your management structure into the ground. If they quit..so what. We have always been a company that needed the management team to work 65 hours per week and get paid for 50. The difference now is the culture that in the past recognized this effort and compensated you for it. Now we are a company that by plan and design expects you to work what ever the hours are at considerably less compensation. This group could offer a buyout as has happened over the last 12 years 5 different times, or it can run you into the ground. What do you think is going to happen ?

If you are over 55 with 35 years of service and working 65 hours per week ... use your noodle and figure it out.

​People less than 55 are trapped to some extent.

 

[Catatonic]

Im a 39 year management guy. I ;ve had my retirment calculation run 3 seperate times through corporate retirement services in atlanta. Ran it at 55..57 and 58. Under no scenario does my pension amount change. I'd love to see what your using to verify an additional 457 dollars a month. And if you were a teamster for any length of time, ups uses a flat 90 per year for every year you were a teamster and reduces your management pension by 90 $$ x the union years. That 90 dollar amount is re calculated once you get your hours statement from the teamsters which takes about 3 months. 200o a month difference ? Dont see it and cant get any pension formula to verify it.

Have you used the calculator available via UPSers.com?

The people in Atlanta do the best they can ... bless their hearts.

I have run mine and helped a dozen others or more run the different months and years after they reach 55.
The pension amount changed every time we put in different months and years.

 

[Catatonic]

5400 per month for a 35 year guy. What planet are you on. Your 1400 to high based on what i am reading sent to me from my friends in atlanta. If i was getting 5400..i am gone right now. Im 58 with over 35 years and 5400 is no where from what i am reading

Are you selecting the 100% guarantee for your spouse?
​That could be well over a $1000 a month difference.

 

[ActionJaxson]

55 years of age 27 years of service = enough to get out of dodge.

​Retirement here I come !