80 and out rule

Discussion in 'UPS Retirement Topics' started by 1Simplemann, Jul 17, 2016.

  1. 1Simplemann

    1Simplemann Active Member

    I was talking with a retiree. He started early and and got out early. Age 50! He said he planned for it and couldn't see himself doing this job at 62-65. I agreed with him. He also said he did something I've never heard of. He QUIT! He's a X-mas baby so he was eligible right at the end of peak. He quit in Sept. Didn't collect a check all fall. He said there was no way he was going through another peak so he went hunting and fishing all fall. So I get the 500 min hours counts as a year of service but I always thought you had to work till the final bell. then go if you could afford to. I thought if you quit you screwed up your pension. I didn't ask if he got paid for his personal time, sick time etc but he made it sound like he did. Ever heard of anyone else doing this? The reason I ask is I'm a X-mas baby as well. I've been saving and planning for retirement my whole adult life. I should be able to afford to go on the 1st day I'm eligible. Dec 23 age 58. He's got a point though. Who wants to go through an extra peak if they don't have to? Plus I love to hunt and fish!
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You won't like my advice but I am going to give it anyway.

    With an eligibility date of 12/23, it may actually make more sense for you to work at least day in 2017 as you would get all of your 2017 vacation time and some of your personal and sick days. That would be a nice chunk of change to start your retirement with.
    • Like Like x 2
    • Agree Agree x 2
    • List
  3. 1Simplemann

    1Simplemann Active Member

    I don't thinks that's the case. You won't be eligible for that till Aug 1;
  4. Ms.PacMan

    Ms.PacMan Well-Known Member

    Tha makes no sense to me. If that driver was eligible then why did he have to wait to collect his pension check and was the amount the same?
  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Sounds like he quit, froze his pension and started drawing when he met the Peer 80 requirements.
  6. Shiftless

    Shiftless New Member

    First off, what area/region did this driver do this from?

    I guess the thing I am having trouble with in this thread is " he quit" and "he was eligible right at the end of peak" .

    I left at 49. I have some experience in this in my region only tho.

    To my knowledge when you quit you lose access to the medical benefits from UPS. In my case I had to be employed and in good standing with the çompany and meet the minimum age requirement "50" to step from employee to retiree under the peer 80 program. Although I was 49 years and 9 months old, I had saved a boat load of time And I was paid by the company all my saved up time past my 50th birthday.

    Maybe in your region the medical benefits are from your teamster pkg when you meet the points for retirement?
  7. 1Simplemann

    1Simplemann Active Member

    He "quit" BEFORE he was eligible. 4 month early. His words, not mine. Froze his pension? Possible. Not sure. When he reached his B-day he met his peer 80 requirements and began receiving pension checks. I'm assuming the pension amount would be slightly less since he didn't have 2100 hrs in for that year and each yrs pension amount is based on what you put in .He got credit for a full year of service because he had a minimum of 500 hrs. I'm assuming he did not have medical since none of us here in the Northwest have it when we retire. Some do in other regions but here we do not. I hadn't ever heard of anyone doing that before. I was just wondering if anyone on here had done the same. Basically he gave up a little in his pension just so could retire a little earlier. The timing for him and I would be almost identical so his plan sounds better and better to me. I guess I thought a guy would take a major penalty for "quitting".
  8. tracker2762

    tracker2762 Active Member

    In our local, you need to work 130 days for the year to be eligible for your vacation. ( vacation days counted towards the 130) Example my seniority date was 1-2 and I work till Sept to get my six weeks. If I had worked only one day I wouldn't have received any vacation pay.
  9. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    WTH ... I was 98 and out!
    58 years old
    40 years at UPS
  10. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Holy Cow!
    That's worse than Central States.
  11. 1Simplemann

    1Simplemann Active Member

    You guys have insurance after you retire? How much do they take out of your check for that?
  12. olroadbeech

    olroadbeech Happy Verified UPSer

    yes , it's possible that he quit early and then waited for his birthday to qualify for peer 80. that example is actually in the Teamsters Benefit Trust retirement booklet.

    my concern would be the medical benefits. he would have had to go on Cobra which for us would be about 500 a month the last time I checked.

    I agree with you about going out as soon as able. why leave 4000 dollars on the table every month? if you kept working at UPS you would only be working for half wages . I know some guys keep working for some good reasons. pay off the mortgage, kids in college, waiting for spouse to retire, etc , etc.

    but we planned for retirement 20 years ago. paid off house in half the time, maxed out the 401k and IRA's. saved, saved , saved.

    it was well WORTH IT.
  13. Retiree

    Retiree Active Member

    Mgmt retirees actually have better insurance than when employed........for the majority of retirees, insurance is free and basically the same coverage.
  14. 1Simplemann

    1Simplemann Active Member

    We are alike then. Just made the final balloon payment on the house. IRA's are maxed and the portfolio is pretty decent. I'm not holding my breath or counting on it but my mother informed me that my inheritance will be substantial. So if I continue as I have been. 57.5 yrs old is looking better all the time. The hopefully the extra income loss won't be an issue. Cobra is fine by me. Why go thru another peak if you can afford not to? Plus taking the fall off to go hunting and fishing ain't a bad way to spend your time. I'll check into Teamster Benefit Trust example.
  15. onestoptogo

    onestoptogo Member

    He could have quit after completing 500 hours (around March) and start drawing his first pension check on Jan 1st if he had enough savings to last the year. If you are 55 or older you could start drawing on your 401k with no early withdraw penalty and live on that under "the rule of 55" until collecting the first pension check on the month following your birthday that gets you to 80 points.
  16. cosmo1

    cosmo1 Just another internet hooligan.

    WITF did you get COBRA for $500 a month.

    I call bologna.
  17. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    And she said for us. Her husband is so disabled he can't work but their insurance would only be $500 a month. Lmao.
  18. burrheadd

    burrheadd Superstar

    You cra cra girl for REALZ
  19. Ms.PacMan

    Ms.PacMan Well-Known Member

    Don't count on the inheritance - too risky.

    What will you live off - your investments? If you can get your income (the taxable portion) below the poverty level you can go on Medicaid or qualify for subsidies thru Obamacare.
  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Have you ever gone through the Medicaid application process? You basically have to be living in a box on the side of the road to qualify.

    My father's health was failing and he was unable to stay in his own home. My brother and I got him in to a nursing home and worked together to get him signed up for Medicaid. They do a 5 year look back to make sure that we didn't move any of his assets to our names. He was allowed one car and less than $500 in cash on hand.

    We were fortunate in that we are able to legally protect a substantial portion of his assets and still qualify him for Medicaid.