What exactly happens with a part time 5 year vested pension? Is it worth it to get just a 5 year pension?

[DELACROIX]

In 2023 the part timer's pension fund (The UPS Pension plan) in the Central and Southern will be put on the table by the Company for elimination, there will be a buy out on vested participants similar to the Management's (UPS Retirement Plan) that happens in the same year. So everybody... even the Full Timers under the Central and Southern who have part time years vested better be paying attention and what will be offered....

How this happens is yet to be played out, it depends on the Teamster's election in 2021, and the bargaining power of the International during these upcoming negotiations....

This prediction only applies to the Central and Southern, you guys in the Western Conferences will continue to improve your benefits as usual, so do not start freaking out.

 

[IVE GOTTA PACKAGE 4U]

I remember reading here the supervisor say a few years back that

Amazon won't quit UPS 100%. If we opened up a brand new sealed deck of cards to play high card. The card you picked and the one I picked are equally balanced on who the lucky winner is. Right?

Amazon has the ability to quickly record into their system that dentist at Fire Lake complains 1 out of 4-times and takes our drivers time up or the Younger Ranch on Teko Summit is 5-miles in and 5-miles out and in the winter our drivers get stuck in his driveway 15% of time. Amazon will slowly keep sending UPS the least profitable deliveries or the money losing parcels and/or stops. Wasn't that long ago we'd lose business to FedEx or gain or retain a lucrative business in service & price. Remember that big puzzling quiz that UPS would have at PCM's or annual sit downs about what customers want the most... a non damaged package, a package delivered on time, to be able to track their package. I always got it wrong and picked the damage is their biggest concern and it turned out is was tracking, That was their #1 priority. Amazon is leaps & bounds ahead of UPS on technology. Plus have younger enthusiastic techno savvy employees. UPS is old school. Sweat, Blood & Guts. That's a recipe for disaster in the 21st century.

Amazon pulled away from Business to Business recently. Covid pushed them back. They don't want to be known as a sloppy company. Which it was looking that way at first. Amazon will be back. Better & Stronger delivering billions a year to major box stores.

It would be foolish for UPS not to believe they're a real threat and over $3,000 a share for AMZN is an easy way to fund your operations by liquidating some stock. Say Amazon needed a nice state of the art distribution center that costs $30,000,000, AMZN would need to sell 10,000 shares. Say UPS needed one at $30-m. They'd need to sell over 260,000 shares.

Amazon has got UPS by the short hairs. Plus the management team is loaded with former center managers and supervisors. They know how UPS looks and plans 10-years forward. (UPS plans 10-years out if you didn't know)

It's not good. We'd of all laughed 15-years ago thinking UPS will be put out of business during our lifetime. I don't think any loyal UPSer is laughing now and there's not a great many loyal ones left.

UPS will still be around, I have complete faith..
They may just not be as big and they may try to handle more profitable packages like critical care.

With COVID-19 going on it has changed the way people do business and shop.

 

[zimbomb]

Thanks for the info everybody, I work in the 243, and I'm only 23. I think sticking it out my 5 months will be worth it for a buyout in a couple of years if I'm offered it or for a big mac a month when I'm 65+, if the pension is still even around by then.

As for quitting past that, I'm out of here as soon as I cash in my three weeks of vacation and set up the pension stuff next year. I have a bachelor's degree and a part-time job working with kids with autism for more money than UPS, and can become fulltime whenever I ask for it. The company I'm with would pay for my schooling to get a master's degree and has ample career opportunities, so Sherwin Williams isn't necessary, hopefully lol. If not, there is one down the street from my hub. I can wave to all the people going to Concentra that I know.

I've just stuck it out this long, might as well get the 5 years to piss off my FT sup, and to not let all my physical labor go to waste.

If I remember correctly pension contributions don't start till you turn 21 for part-time and 25 for full-time. Depending on your birthday month could result in losing all or half of the year you turned 21. It's a load of bull...

 

[IVE GOTTA PACKAGE 4U]

If I remember correctly pension contributions don't start till you turn 21 for part-time and 25 for full-time. Depending on your birthday month could result in losing all or half of the year you turned 21. It's a load of bull...

Another give back that happened over the years. Language is key.

 

[Ancient Alien]

Amazon cannot handle what they have now.
Maybe that will change later but for now on online shopping can get bigger and bigger and bigger

I hope someone high up at UPS understands this. Amazon is like Covid where I live. You don't see it, you tell yourself it's not coming.
The facts are if you spread confirmed cases of Covid out evenly over all 50-states. Each state would have 65,000 cases. Think about you driving around your city or country and how many Amazon trucks are out delivering. It's very little. Think of a day where 65,000 Amazon employees are in each state as an average.

I don't have the solution and hope UPS does. I personally believe they have to rein in costs by working smarter with the union not harder. You hear " show" constantly from UPS employees. That needs changed. I have no doubt the workforce man/woman to man/woman is better than Amazon's as a whole right now. You got to sustain and improve on that culture. What I'd do starting yesterday is UPS still has political clout and a POTUS that actually 'hates Amazon', I'd take advantage of that somehow before it's too late.

Amazon is a monopoly and it's coming for your kids milk money. Better to go head to head at them now than later.

Happy Sunday!

 

[IVE GOTTA PACKAGE 4U]

I hope someone high up at UPS understands this. Amazon is like Covid where I live. You don't see it, you tell yourself it's not coming.
The facts are if you spread confirmed cases of Covid out evenly over all 50-states. Each state would have 65,000 cases. Think about you driving around your city or country and how many Amazon trucks are out delivering. It's very little. Think of a day where 65,000 Amazon employees are in each state as an average.

I don't have the solution and hope UPS does. I personally believe they have to rein in costs by working smarter with the union not harder. You hear " show" constantly from UPS employees. That needs changed. I have no doubt the workforce man/woman to man/woman is better than Amazon's as a whole right now. You got to sustain and improve on that culture. What I'd do starting yesterday is UPS still has political clout and a POTUS that actually 'hates Amazon', I'd take advantage of that somehow before it's too late.

Amazon is a monopoly and it's coming for your kids milk money. Better to go head to head at them now than later.

Happy Sunday!

Nobody has the balls to drop them. Let them sink or make them pay more.

 

[KTea]

If I remember correctly pension contributions don't start till you turn 21 for part-time and 25 for full-time. Depending on your birthday month could result in losing all or half of the year you turned 21. It's a load of bull...

Shoot, would I lose the years before I turned 21 as well? I started when I was 18 and have a birthday in May. That is a load of bull... I tried reading the Master Agreement and here is what it says

"The Company will amend the UPS Pension Plan to allow an employee with an hour of service in covered employment on or after August 1, 2013 to become a participant on the January 1 or July 1 (whichever is earlier), after reaching age 21 and completing a 12 month period of employment beginning on their hire date, or any subsequent calendar year, in which they earned at least 375 hours of service. In addition, in order to receive any retroactive benefit service as a result of the change, the employee’s primary job as of August 1, 2013 must be a part-time position. The Pension Plan will also be amended to reduce the number of hours of service required to earn a vesting year from 750 to 375. This paragraph does not change how benefit service is accrued."

It sounds like my 18-21 years don't count because I started in 2015?

 

[IVE GOTTA PACKAGE 4U]

Shoot, would I lose the years before I turned 21 as well? I started when I was 18 and have a birthday in May. That is a load of bull... I tried reading the Master Agreement and here is what it says

"The Company will amend the UPS Pension Plan to allow an employee with an hour of service in covered employment on or after August 1, 2013 to become a participant on the January 1 or July 1 (whichever is earlier), after reaching age 21 and completing a 12 month period of employment beginning on their hire date, or any subsequent calendar year, in which they earned at least 375 hours of service. In addition, in order to receive any retroactive benefit service as a result of the change, the employee’s primary job as of August 1, 2013 must be a part-time position. The Pension Plan will also be amended to reduce the number of hours of service required to earn a vesting year from 750 to 375. This paragraph does not change how benefit service is accrued."

It sounds like my 18-21 years don't count because I started in 2015?

I don't know the exact answer to this but my thinking is.
Yes they did not make contributions on your behalf before you use the age of 21 but as long as you have 5 years in, The years that they did pay into the plan should be vested.

 

[Returntosender]

just do the five years suck it then leave. 200.00 a month may not sound a lot now. But when you get old and need 200.00 a month at least you have it. If you got the job at 18 you need another 3 years

 

[KTea]

just do the five years suck it then leave. 200.00 a month may not sound a lot now. But when you get old and need 200.00 a month at least you have it. If you got the job at 18 you need another 3 years

Yeah, I'm not sticking it out another three years. Not worth the physical and mental work. 5 months I could handle, but I'm trying to start a career and go to graduate school. I'm not going to start my actual life at 26 for 200.00 extra a month that isn't guaranteed.

 

[KTea]

I don't know the exact answer to this but my thinking is.
Yes they did not make contributions on your behalf before you use the age of 21 but as long as you have 5 years in, The years that they did pay into the plan should be vested.

So two vested years, would be 120 a month instead of 300... still not really worth it.

 

[DELACROIX]

I haven't read the ERISA act lately, very, very boring reading by the way, but there could of been improvements on the age of participants to start vesting rights. I could be wrong on this but I believe that the age of 21 may be retroactive for those hired on before 2013, It does not help you with your 5 years if you hired in before age 21, instead of counting 5 you just get 2 if you happen to hire in at age 18.

That was the reason that the company was hiring young, strong men who happened to be going to college back in the 70's, 80's, 90's and early 2000, during those early years you were hired on with the ability to match the full time hourly rates. That is why many of those hired in the 70's and 80's might be better educated than most of those on the current corporate positions, we stayed because of the hourly rate, health coverage and the lack of high end jobs during recessionary time during those decades.

I still remember the requirement for any part timer (Union or Non-Union) who wanted a career at UPS had to run scratch for a month in order to be promoted or qualify, that changed around 2000 when they could not get enough women to fill their management positions so they eliminated that requirement.

 

[Yolo]

If you go into ft driving after 4 years of pt do you get any pension for your pt years? Asking for a friend.

 

[IVE GOTTA PACKAGE 4U]

So two vested years, would be 120 a month instead of 300... still not really worth it.

I guess you need to check it out.

 

[DELACROIX]

So two vested years, would be 120 a month instead of 300... still not really worth it.

"If you start collecting at age 65" It is reduced 6 % for every year prior, or for example it taken at age 55, that 120 is reduced by 60 %...or about 50 a month...

 

[DELACROIX]

If you go into ft driving after 4 years of pt do you get any pension for your pt years? Asking for a friend.

No, I believe that you have to work 5 years to be vested and again the age you started will affect those...Better get into full time status and actually expect a retirement.

 

[offroad6901]

I don't know the exact answer to this but my thinking is.
Yes they did not make contributions on your behalf before you use the age of 21 but as long as you have 5 years in, The years that they did pay into the plan should be vested.

So, my understanding is that once I turn 21, the date of January 1st or July 1st, whichever occurs earliest after my 21st birthday is when I start to accrue vested pension credits?
Here is my example. I was hired in June, 2016. I turned 21 in beginning of December, 2017. I would say that 2018, from January 1st on, is my first year of eligible vested credit. Right now, if all that is indeed how the pension credits work, I would have full years for 2018, 2019, and 2020. Once I hit my 5th anniversary day in June, 2021, I will have accrued maybe a half or 3/4 credit for 2021, so my total vested credits would be 3.5 or 3.75, if I quit in June of next year?? That would equate, under my current contract and local supplement, to a monthly benefit if taken at FRA (65) equivalency of $60*3.75 = $225 (5 years and out), if I am reading it right.

Does anybody know anything more on this? Any help or further thoughts is appreciated. I am trying to gauge what I am working for and if anybody knows more than me. HU (HR, a.k.a. Human Uselessness) knows nothing. I can definitely stay, but I also need to move on eventually, as is with everything in life.