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UPS Partners
Gulp! Just when I thought it was safe to retire.
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<blockquote data-quote="jeepguy63" data-source="post: 1197544" data-attributes="member: 4863"><p>I love to join in these debates where I can add FACTS. </p><p></p><p></p><p>Here is what you need to know / be aware of in regards to the mgmt retirement healthcare. Page 68 - 75 of the 2012 annual report has all the meat and potatoes!</p><p></p><p></p><p>"We also sponsor postretirement medical plans in the U.S. that provide health care benefits to our retirees who meet certain eligibility requirements and who are not otherwise covered by multiemployer plans. Generally, this includes employees with at least 10 years of service who have reached age 55 and employees who are eligible for postretirement medical benefits from a Company-sponsored plan pursuant to collective bargaining agreements. We have the right to modify or terminate certain of these plans. These benefits have been provided to certain retirees on a noncontributory basis; however, in many cases, retirees are required to contribute all or a portion of the total cost of the coverage.". (p68)</p><p></p><p>Key words- we have the right to modify or terminate..... Of course we (mgmt) know that only applies to the non-union plans. </p><p></p><p></p><p>Bottom of page 70 - projected obligations - $4.4 billion, current asset (reserve) $460 million. AGH!!! A little short! </p><p></p><p></p><p>Top of page 70 "Health care cost trends are used to project future postretirement benefits payable from our plans. For year-end 2012 U.S. plan obligations, future postretirement medical benefit costs were forecasted assuming an initial annual increase of 7.5%, decreasing to 5.0% by the year 2018 and with consistent annual increases at those ultimate levels thereafter."</p><p></p><p>Really! In what world will health care costs increase by 5%? It also states in the next paragraph that each 1% above 5%, will add $58 million in expenses. </p><p></p><p></p><p>The expected cash flows, (expenses) on page 75 are staggering, both for the health and welfare plans - but even more so for the pension plan. Without a significant improvement in the economy/ net income to fund these plans, or a significant improvement in the discount rate (investment interest rates), the plans will collapse on themselves...... Thus - the company will "enhance" managements benefits once again. </p><p></p><p></p><p>Save your money. Get out of debt. Keep,doing your job and keep your head down. Load up your health care savings account to the max every year. Plan on working (somewhere) until you are around 60. With life expectancy where it is at, 60 is still "early."</p></blockquote><p></p>
[QUOTE="jeepguy63, post: 1197544, member: 4863"] I love to join in these debates where I can add FACTS. Here is what you need to know / be aware of in regards to the mgmt retirement healthcare. Page 68 - 75 of the 2012 annual report has all the meat and potatoes! "We also sponsor postretirement medical plans in the U.S. that provide health care benefits to our retirees who meet certain eligibility requirements and who are not otherwise covered by multiemployer plans. Generally, this includes employees with at least 10 years of service who have reached age 55 and employees who are eligible for postretirement medical benefits from a Company-sponsored plan pursuant to collective bargaining agreements. We have the right to modify or terminate certain of these plans. These benefits have been provided to certain retirees on a noncontributory basis; however, in many cases, retirees are required to contribute all or a portion of the total cost of the coverage.". (p68) Key words- we have the right to modify or terminate..... Of course we (mgmt) know that only applies to the non-union plans. Bottom of page 70 - projected obligations - $4.4 billion, current asset (reserve) $460 million. AGH!!! A little short! Top of page 70 "Health care cost trends are used to project future postretirement benefits payable from our plans. For year-end 2012 U.S. plan obligations, future postretirement medical benefit costs were forecasted assuming an initial annual increase of 7.5%, decreasing to 5.0% by the year 2018 and with consistent annual increases at those ultimate levels thereafter." Really! In what world will health care costs increase by 5%? It also states in the next paragraph that each 1% above 5%, will add $58 million in expenses. The expected cash flows, (expenses) on page 75 are staggering, both for the health and welfare plans - but even more so for the pension plan. Without a significant improvement in the economy/ net income to fund these plans, or a significant improvement in the discount rate (investment interest rates), the plans will collapse on themselves...... Thus - the company will "enhance" managements benefits once again. Save your money. Get out of debt. Keep,doing your job and keep your head down. Load up your health care savings account to the max every year. Plan on working (somewhere) until you are around 60. With life expectancy where it is at, 60 is still "early." [/QUOTE]
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Gulp! Just when I thought it was safe to retire.
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