UPS Special Pension Buyout Offer - December 2016

[Jackburton]

Going by Hoax's 6% ROI, that alone would make me take the lump sum. They are already discounting the money factor based on your age, that's a given. However the ROI is based off a relatively "safe" investment. Being younger will net you a lower payout no doubt, but you also have more time for that money to grow at a higher rate.

On top of all this, when you die you have a lump sum you can pass down or cover your wife with, without taking a survivior payout discount.

Did I mention I won't have to give myself a cut in benifits like the current retirees are facing?

 

[ExFinanceGuy]

From my research, 4% discount rate. I'm sure there will be rollover options. If you rollover, use the trustee to trustee option.

Not sure if this calculator has been posted yet, but I find it to be the most accurate for this type of calculation. A lot of crazy numbers being posted in this thread. Again, use a 4% discount rate and the rest is simple. I don't see how UPS can go above a 4% discounted rate without a special exemption from the IRS.

Present Value of a Series | Value of an Annuity

Here's my advice. Unless you desperately need the money - DON'T take it. With interest rates as low as they are, inflation is not massively eating away at the value of your pension (while you are no longer there accruing years). Forget that it's there. Also remember that future buyouts may come along and be better as your age approaches retirement -- especially if life expectancy continues to increase. Regardless of what people say, the UPS Mgmt Pension appears to be relatively strong (as opposed to the morale). ha ha ha

Good luck, John

PS - UPS is a good company and I will say it wasn't that bad for those that worked hard, but overall, life is much better outside of the UPS, and as much as UPS talks about their benefits and pensions, there are just as good (I got better) options out there.

 

[lotrfan]

ATTENTION!!!

Here's the contact phone number for more info. for those who received the UPS SPECIAL PENSION PAYMENT OFFER Notice.
(855) 216-8048

I have been calling that number since 9:00am EST and get this message: "There are currently no agents staffed to take your call."

 

[jrhoderick]

Are the post cards only being sent to people's who were in management at UPS?

I was in TSG. I think it's anybody that is tenured with 5 plus years that no longer works there.

 

[Jaco Williams]

From my research, 4% discount rate. I'm sure there will be rollover options. If you rollover, use the trustee to trustee option.

Not sure if this calculator has been posted yet, but I find it to be the most accurate for this type of calculation. A lot of crazy numbers being posted in this thread. Again, use a 4% discount rate and the rest is simple. I don't see how UPS can go above a 4% discounted rate without a special exemption from the IRS.

Present Value of a Series | Value of an Annuity

Here's my advice. Unless you desperately need the money - DON'T take it. With interest rates as low as they are, inflation is not massively eating away at the value of your pension (while you are no longer there accruing years). Forget that it's there. Also remember that future buyouts may come along and be better as your age approaches retirement -- especially if life expectancy continues to increase. Regardless of what people say, the UPS Mgmt Pension appears to be relatively strong (as opposed to the morale). ha ha ha

Good luck, John

PS - UPS is a good company and I will say it wasn't that bad for those that worked hard, but overall, life is much better outside of the UPS, and as much as UPS talks about their benefits and pensions, there are just as good (I got better) options out there.

How do I use the calculator?

I enter how much I'm to get each month...
What about the "number of cash flows"...? How do I know what that will be with a pension lump sum..? Is it calculated from when I'm 65yrs old to 81yrs..?

Is the Present Value suppose to be approx. what my lump sum amount will be...?

 

[ExFinanceGuy]

For example, if you are 45, your retirement begins at 65. In the past you have gotten a retirement estimate of $2,000 at 65, you would input the amount of $2,000, 204 as the number of cash flows (82-65 times 12), 4% as the discount rate, use 11/15/2016 as today's date since that is a rough estimate of the actual payout date, and first cash flow date of the month after your birth-date. Let's say 12/1/2036 if you are 45 years old. $133K.

Again, pretty rough estimate, very difficult to pinpoint what other factors UPS and their actuaries may throw into the equation. I believe the PBGC rates only allow up to a maximum of 4% for buyouts. This rate used to be based on Treasuries, but now has a mix in of Corporate bonds rates (bad for us, good for pensions).

Will be interesting to see actual number. While this looks like a large number to many, it pales in comparison to the lifetime of payments for you and your spouse, especially if you are in good health.

John

 

[margincharge1]

I also called the UPS Special Pension Offer Line this morning as well. There were no agents available initially. I called again about 9:30am EST they finally answered. The agent said that the computers were down and that he couldn't give me any info. He advised me to call back on Friday or wait until Mon or Tues to get the packet in the mail. He also said the packets would be mailed out today. Will let you all know what happens. Going to call back this afternoon to see if the computers are up.

 

[Dogsqueezins]

Just spoke with them...said beginning Monday, 10/3, we will be able to make our election online once offer packet is received https://secure.worknetservices.com/ups

Was told that lump sum payments would sent out mid December and monthly annuities would begin January.

 

[Kimmie]

Well I also called and spoke with an agent and she told me who it pertained to...she told me that is is for participants with the UPS retirement plans and the UPS pension plans. She also told me that it did not apply to everyone. She said that it only applies to those who were hired after July 1, 2003 and before June 1,2016. I was hired at UPS in June 1989 - February 2001. So it does not apply to me...

 

[Post Trippin]

I was hired 2001 and separated from UPS 2016, i got a postcard

 

[ExFinanceGuy]

Not correct. It is not for anyone 'Hired' from those dates, it is for anyone who is under 65 and left the company between those dates. Big difference.

Essentially, if you got a postcard you are eligible.

John

 

[By The Book]

Not correct. It is not for anyone 'Hired' from those dates, it is for anyone who is under 65 and left the company between those dates. Big difference.

Essentially, if you got a postcard you are eligible.

John

Just hearing how what you said is completely differently than what the previous poster was told is troubling. Sounds like they don't understand the product they are selling.

 

[ColtLester45]

I just got off the phone with Tucker at the 1800 number provided, he informed me that packets would be mailed out tomorrow and I should receive it on 10/3 (Monday). He said that he didn't have any specific figures in front of him, but the lump sum offer is calculated by factors of current age, mortality rates, the monthly amount for your pension, and current interest rates. He also said that there is a website that will be available for you to make elections once you get your offer. The only part that bothers me is the part about using current interest rates, right now they are so low that it will severely lower any offer imo. I have a number in my head and if its remotely close to it, I'm taking the lump sum and reinvesting it with my current company's stock purchase option where I get a 15% discount.

 

[Junkguy]

I received the same UPS Special Pension Payment Offer Card a few days ago.
I worked for UPS a total of 16 years part time. I became disabled in 2006 so I had to resigned. I'm eligible for my pension at age 55. Still have 5 years to go. Does anyone know what the offer will be or how it will be calculated?

Did you ever check with the fund or the pension book to see if you could receive the pension without penalty upon disability? I know the Teamster plan is that way but I was never able to get my hands on a reputable book or info. Now might be the time to possibly negotiate that since they want to clear everyone off the books they can. The cost of maintaining pensions is going up considerable on a per person basis with new longer life expectancy being raised and the insurance premium to PBGC being raised as well. This all might play in our favor when the offers come out.

 

[ExFinanceGuy]

I just got off the phone with Tucker at the 1800 number provided, he informed me that packets would be mailed out tomorrow and I should receive it on 10/3 (Monday). He said that he didn't have any specific figures in front of him, but the lump sum offer is calculated by factors of current age, mortality rates, the monthly amount for your pension, and current interest rates. He also said that there is a website that will be available for you to make elections once you get your offer. The only part that bothers me is the part about using current interest rates, right now they are so low that it will severely lower any offer imo. I have a number in my head and if its remotely close to it, I'm taking the lump sum and reinvesting it with my current company's stock purchase option where I get a 15% discount.

Couple things here. First, you want interest rates to be as low as possible since they are using low rates to discount your future dollars. If interest rates were higher, you would get less of a buyout offer.

Second is taking the lump sum and investing it. May be an okay idea, but can you do it pre-tax with a rollover? Most stock purchase plans are after tax through one's paycheck. If you take the lump sum, you are losing out - if you are then faced with the IRS's 10% penalty, you have pretty luck lost the margin game.

Good luck, John

 

[ExFinanceGuy]

Just hearing how what you said is completely differently than what the previous poster was told is troubling. Sounds like they don't understand the product they are selling.

Or possibly the person simply didn't understand what they were told. If you got a postcard, you will get a packet.

 

[Former UPSerSC]

It seems they are giving conflicting information to all that calls. I was told that once I receive the packet I could elect online for a direct deposit of the lump if that was the route I chose. Then after reading some comments on here, I called back and was told that I could elect it online but could not get direct deposit, that I would have to wait until December for the live check??? I'm not sure whose right or wrong. I have been trying to calculate what the payout may be, I'm 36 years old, my estimated annuity payment is $608. per month. Any ideas on how to figure this out????

 

[Jaco Williams]

Look at #122

 

[Todd Oatman]

Look at #122

 

[Todd Oatman]

Can I ask I also received a postcard, is this for the part time pension only I had 7.5 years PT and 19 years FT Retired 5 years ago started drawing pension at 49