Pension Buyout

[alex cariello]

Anyone receive a letter saying UPS was offering pension buyout? I friend so, any ideas what that is about?

 

[UpstateNYUPSer(Ret)]

This is the first we have heard of this.

 

[alex cariello]

I will let you know what I get.

 

[UpstateNYUPSer(Ret)]

I am on the edge of my chair.

 

[Boulevard859710]

Give me a significant sum to just plunk in the bank for 15+ years and I might go for it. Question I have to ask and find out is what is considered a significant sum though.

 

[Mugarolla]

Anyone receive a letter saying UPS was offering pension buyout? I friend so, any ideas what that is about?

Saw something posted somewhere.

If I had to guess, I would say it involves employees who no longer work here but have worked here long enough to receive a small pension starting at age 65.

UPS may want to get this liability off the books. Stock holders hate this kind of debt.

 

[alex cariello]

9yrs total 5 years in management.

 

[Coldworld]

Saw something posted somewhere.

If I had to guess, I would say it involves employees who no longer work here but have worked here long enough to receive a small pension starting at age 65.

UPS may want to get this liability off the books. Stock holders hate this kind of debt.

View attachment 98593

So they con them with pennys on the dollar....

 

[Coldworld]

9yrs total 5 years in management.

You basically get nothing especially for the mgt part...sorry

 

[Coldworld]

Saw something posted somewhere.

If I had to guess, I would say it involves employees who no longer work here but have worked here long enough to receive a small pension starting at age 65.

UPS may want to get this liability off the books. Stock holders hate this kind of debt.

View attachment 98593

Sounds like an info commercial ....just expecting the dude from oxyclean or Phil swift from rubber in a can to start talking

 

[watdaflock?]

About time UPS attempted to get rid of dead weight the right way.

 

[LongGone]

Received my buyout offer. 10 years fully vested, offered $33k cash taxed @ 30% or $175/mo for life. Haven't been @ UPS for almost 10 years. Wouldn't take less that $45k as retiring @ 65 w/current $875/mo pension living at least until 85 is over $200k. Rolling the $33k over into a Roth IRA with average 6% interest without any further contributions comes out to $215k @ 65. Let's hear what other offers are out there? Heard of another @ 6 years offered $16k. Might not be a bad idea as I'm seeing chatter of UPS pensions being cut in half due to all the retirements coming up in the next few years.

 

[Wally]

About time UPS attempted to get rid of dead weight the right way.

Just have a audit. Lots of dead weight there.

 

[35years]

Sounds like UPS is looking to dump excess profit coming into the next contract.

 

[StoptheAct1212]

I got about 20 years in.... i would take a nice payout and enjoy my life . But realistically i still have another 18 years tk go

 

[UpstateNYUPSer(Ret)]

Sounds like UPS is looking to dump excess profit coming into the next contract.

...or they could be pandering to shareholders by taking advantage of the current IRS rules to shed a portion of their pension obligation...

 

[HEFFERNAN]

Received my buyout offer. 10 years fully vested, offered $33k cash taxed @ 30% or $175/mo for life. Haven't been @ UPS for almost 10 years. Wouldn't take less that $45k as retiring @ 65 w/current $875/mo pension living at least until 85 is over $200k. Rolling the $33k over into a Roth IRA with average 6% interest without any further contributions comes out to $215k @ 65. Let's hear what other offers are out there? Heard of another @ 6 years offered $16k. Might not be a bad idea as I'm seeing chatter of UPS pensions being cut in half due to all the retirements coming up in the next few years.

I'm under the impression you can only put 5,500 a year in a Roth. 11,000 if you count it to last year as well.
Also depends on your current salary, but you wouldn't be able to roll 33,000 right to a Roth.

@UpstateNYUPSer Am I thinking this right?

 

[UpstateNYUPSer(Ret)]

I'm under the impression you can only put 5,500 a year in a Roth. 11,000 if you count it to last year as well.
Also depends on your current salary, but you wouldn't be able to roll 33,000 right to a Roth.

@UpstateNYUPSer Am I thinking this right?

You can only contribute up to $5,500 per year. There is no limit on the amount that you can roll over. I plan on rolling my 401k to my Roth IRA when I retire.

 

[IVE GOTTA PACKAGE 4U]

You can only contribute up to $5,500 per year. There is no limit on the amount that you can roll over. I plan on rolling my 401k to my Roth IRA when I retire.

And pay tax on the whole thing?

 

[IVE GOTTA PACKAGE 4U]

I'm under the impression you can only put 5,500 a year in a Roth. 11,000 if you count it to last year as well.
Also depends on your current salary, but you wouldn't be able to roll 33,000 right to a Roth.

@UpstateNYUPSer Am I thinking this right?

He could put the money into a ROTH but he would need to pay taxes on the whole thing. You can't pay the taxes from the money that's being rolled over.