EBO?

[TechGrrl]

Re: Offer

I would have taken that offer in a heartbeat.It is easy for people to imply I should leave anyway. But the reality is that I am not a two unit person that received double MIP for years. I never sold stock because that was a not what the old guard did. If you did sell stock you would have to explain to the district manager why you did not have faith in the company.How was I to know the market take a dive.

And lookie here, the stock has recovered from $38 to over $60....shoulda bought some back at $38. What difference does the stock price matter until you actually sell it? In the meantime, collect your glorious dividend checks, since they keep on coming. If you have 27 years in, and never sold stock, you should be sitting pretty.

 

[Six Sides]

Re: Really ?

Same here for me but make sure you go to the second page to see what you really get based on spousal selection. I made that mistake at first.

Note that with each year you work past 55 (with 35 yrs or more of service) your monthly payment goes up 7-8% until you reach 60 and then it flattens out at 2%.
My plan is to stay until I'm 60 so not getting the SRP was okay for me but I may have taken it ... we'll never know.

I have seen the second page. I know several people that have retired and taken out an insurance policy rather then take the deduction.

 

[Catatonic]

Re: BD 2 unit person

Excellent point. It is called entitlement. Everyone thinks they are entitled to more. I know 55 year olders with 25+ years of service, hanging around now for months, just waiting to see what they could get. If there weren't rumors of EBO, etc, they would of been long gone.
Take your pension you have been promised and enjoy yourself.

I'm not sure I follow your point here. Most men do not look forward to retirement - they wind up getting a job within 6 months to 2 years after retirement or dying. (source: Ernie J. Zelinsky)
Also, UPS does not offer retirement until age 65 with less than 35 years and at age 60 with 35 or more years of service.

If a person takes "early retirement" the amount of your pension is reduced actuarially for the monthly payout plus UPS imposes a penalty of 3% per year as Jingles outlined in this thread. (He was right on if you have 35 years of service so I am assuming he was correct for less than 35 years of service. See below for Jingle's post.)
I assume the amount paid out in the SRP is to offset the penalty that UPS imposes. Once you do a Net Present Value analysis of the SRP payout versus what UPS penalizes the retiree, there is not much financial difference.

This is one of the first things that financial advisers make you aware of when you start working on financial models. The penalty UPS imposes is fairly significant over a 30 year payout but not enough to keep someone from retiring if they are ready.

If you are 55, you can request a package from HR without actually commiting to retirement. In that package, you will see a 3% penalty for each year before age 65 imposed (I've seen this from one of the managers in the building. I understand if you have 35 years then it is 3% per year before age 60.
The SRP does not have a penalty, the actual UPS retirement package does.

I'm beginning to doubt you are as you pretend to be. I appear to know more about your retirement benfits than you do and I am no where close to retirement.

 

[Six Sides]

Re: very sad

One more time: the 18's and above are REDUNDANT in this move of consolidating region and district offices. They are also paid a lot of money, so dumping them makes lots of financial sense.

Wow,
I hope your not related to Mr Jingles, someone called PE to set traps for him.

 

[Catatonic]

Re: Really ?

I have seen the second page. I know several people that have retired and taken out an insurance policy rather then take the deduction.

That is a good thing to do if you continue to work past 55 as well. UPS defaults to spousal payout of 50% ... so if you die before you retire, the spouse will miss half of the monthly pension payout.

 

[satellitedriver]

Re: Really ?

I have seen the second page. I know several people that have retired and taken out an insurance policy rather then take the deduction.

Excellent point,
The deduction used as a payment toward a term life policy is the way to go, for many cases.
One"brings home" no more money monthly than if they took the deduction, but, upon death one's spouse will receive a lump sum "tax free" amount.
The math is not that complicated, but the calculus must be done to consider all the variables.
-( IE; taxable income)-
Any pension payment paid to a surviving spouse is a yearly taxable event.
A lump sum insurance payment is non taxable event, only the interest and growth becomes a taxable event.

 

[Red Rose Tea]

Re: BD 2 unit person

I'm not sure I follow your point here. Most men do not look forward to retirement - they wind up getting a job within 6 months to 2 years after retirement or dying. (source: Ernie J. Zelinsky)
Also, UPS does not offer retirement until age 65 with less than 35 years and at age 60 with 35 or more years of service.

If a person takes "early retirement" the amount of your pension is reduced actuarially for the monthly payout plus UPS imposes a penalty of 3% per year as Jingles outlined in this thread. (He was right on if you have 35 years of service so I am assuming he was correct for less than 35 years of service. See below for Jingle's post.)
I assume the amount paid out in the SRP is to offset the penalty that UPS imposes. Once you do a Net Present Value analysis of the SRP payout versus what UPS penalizes the retiree, there is not much financial difference.

This is one of the first things that financial advisers make you aware of when you start working on financial models. The penalty UPS imposes is fairly significant over a 30 year payout but not enough to keep someone fro m retiring if they are ready.

This is my point - this SRP/EBO is targeting a group of employees. I dont see anything unfair about this at all.
The impression I got from Mainmast, he wants to retire, but is upset his group is not included in this offer. He says his retiring would possibly save an admin or part-time sup a job. I simply say, stop complaining , retire and enjoy your life. He's not being forced out. He said he would leave in a heartbreak. My question to him is, when was he planning on retiring prior to any knowledge of this SRP/EBO.
In my 25 years with UPS, I dont know any operation manager who waited until they were 65 or even 60 years old to retire. They counted the days left to retire daily. The managers I worked with DID look forward to retiring - to travel, spend more time with their families, no more 15 hour days, etc.
I know all about the penalties etc., but in my experience those penalties did not stop the many managers I worked with from retiring.
And I thought this SRP was only a 1 year SEVERANCE PKG? If Mainmast is 55 with 27 years, what advantage would this SRP be to him?
He is crying foul because he wasnt offered this buyout - entitlement mentality. it doesnt look like his job is in danger. lets put everything in perspective.
There are many people like myself who are worried whether we will have a job when the dust settles - we dont have the luxury to complain about SRP-EBO-RETIREMENT- 3% PENALTY ETC.

 

[Catatonic]

Re: Offer

If you have 27 years in, and never sold stock, you should be sitting pretty.

But could be sitting prettier if diversified. There is no way I could retire still owning all my UPS stock.

 

[Six Sides]

It is hard to accept that an operations center manager is included in this and the supervisor is not. At the center level they both work hand and hand and cover for each other. If this EBO/SRP started at grade 18 and above, I think a lot of supervisors would feel better about it. Grade 18 and up are definitely seen at a different level and removed from the day to day hands on operation. I do not see the number of center managers dropping, if fact I have seen an increase.
Since the center manager was included so should the supervisor, at least the 54+ group.

 

[bigdog]

Supervisors have a skill set we want to retain. The center manager offer is made so slots will be open for all the Grade 18"s left over. In the Q&A is says "no bumping" and if lower level responsibility is taken a Grade 18 can only move into an "open" slot.

Some of these "open" slots will be available after the center manager level SRP's are taken. The SRP takes care of the "penalty". Therefore it is almost a wash and the SRP participant with 55 and 25 leaves almost whole.

Again I agree with some of the other posters - Corporate could have just come in like a lot of companies (happened here in Memphis at Fedex) and just walked 1800 employees out the door with no warning and mailed you your personal belongings you left behind. (Fedex did this to about 600 employees in Memphis a few months ago).

The whole idea is to get the employees in this groug to go ahead and retire. Had there not been a EBO rumor how many would have left anyway? The trend says not many.

 

[TechGrrl]

Re: Offer

But could be sitting prettier if diversified. There is no way I could retire still owning all my UPS stock.

I'm sure you are correct. Once the stock quadrupled in 1999, it was time to diversify. However, even just hanging onto it, counting dividends, there should be plenty of income to go around.

 

[tieguy]

Re: BD 2 unit person

In our district ,I am aware of a 55 year old BD person waiving goodbye to his counterpart in operations who took the buyout. You don't think he is upset?
His counterpart came fron BD and was in opertions less then two years. Simply put, a ebo for a combination years of service and age = 80 for all management ,including supervisors,would have been fair.

I think the company giving me a million dollars would also be fair. aint happening.

 

[Anonymous 10]

Re: BD 2 unit person

I think the company giving me a million dollars would also be fair. aint happening.

I'll 2 bucks$$$$$$$$$$$$$$$$$$$$$

 

[whiskey]

Re: BD 2 unit person

I'll 2 bucks$$$$$$$$$$$$$$$$$$$$$

The roar of this train could be heard off in the distance for a long time now. Question is, how many more behind it?

 

[Anonymous 10]

Re: BD 2 unit person

The roar of this train could be heard off in the distance for a long time now. Question is, how many more behind it?

That was my first offer I was low balling him i've got a big jar of pennys I would throw in.