How to retire from UPS

Discussion in 'UPS Retirement Topics' started by Scotsman, Mar 17, 2010.

  1. Scotsman

    Scotsman Scotsman

    I'm 2 yrs out from my 80th point and plan on recieving pension asap thereafter... (I'll be 49, I started @ age 18, preload 9 yrs, driver for 20)...

    What advice for an "exit strategy" is usually given?

    Most drivers seem to take all vacation at once then retire after that? Cash out sick bank, line up health care? life insurance? blah, blah blah....

    What's "YOUR" exit plan?..... or what else should I consider?
  2. moreluck

    moreluck golden ticket member

    Pay off your debt......including mortgage !!

    Oh, and lining up health care is not a "blah, blah"'s major if you are buying your own.
  3. Camping Nana

    Camping Nana Member

    DH went out at over 36 years with the company at 57 years old. He gave his management team a spreadsheet with the weeks after his last "work" day all lined out as to which weeks would be vac, which would be a combo of option days and sick bank, etc. He chose the last day of a month to be his last "employment" date so that he would begin receiving his pension on the first of the month that his actual separation from UPS began. So, he had over 2 months that he continued to be "employed" by UPS and received weekly checks - but was "retired". There were about 12 sick days left that he cashed out. With local management everything moved smoothly like clock work - however, payroll's interpretation of contract language regarding "accumulated" vacation time and our interpretation (as well as local mgt) was not the same - therefore, we felt that UPS cheated us of about 20 days pay.... but.... after fighting it to a certain level (we could have pursued it further), we decided that the stress and time involved with fighting it just wasn't worth the effort! It was time to put it behind us and get on with retirement - and it's all good! :happy2:

    I will say this regarding your insurance..... DO make sure that you have all your ducks in a row regarding medical coverage. We had spoken to our union local, the insurance administrators, and pension administrators - thought we had every base covered. Had even told them that we were planning to move to a different state.... "oh, no problem - you will have coverage..." HOWEVER, no one bothered to let us know that yes, we would have coverage, but we would be considered "out of network" - therefore, we would be responsible for not only our increased percentage, but the difference between the "usual and customary fee" and what was actually charged. This was quite a shocker! :sick: Not that it would have made any difference in our decision to move, but we would have been mentally prepared for the increase in our medical expenses.

    All that being said............... Retirement has been wonderful! Begin planning now - talk to a financial advisor regarding your 401K investments and any planned withdrawals and/or rollovers. make sure you have FULL confidence in your financial advisor... once again, we received incorrect information regarding a rollover - it worked out okay, but potentially could have been disastrous ! Fortunately, we have a great financial guy and helped us out with that! :happy-very:

    Good luck and God bless!
  4. Old International

    Old International Now driving a Sterling

    How do I plan for retirement? First, I have to make it to 95 points. After that, it will all be downhill.

    FAVREFAN Member

    Congratutations Scotsman. That is kick _ss! You're almost there. I can't imagine how good that must feel. Good for you!
    I agree with the post above. Carry zero debt into retirement. Move monies into safer investments. Then start watching massive amounts of sports, go golfing, go to Vegas, go on a cruise, see the world! And sleep in!
  6. 29th Christmas

    29th Christmas New Member

    I'm in the same boat as you and am working hard to be debt free in 18 mos--but I think I'll still have a little bit of a mortgage left to pay on. We have an empty nest and will still be paying SOME college expenses for our 3rd son. My wife is a teacher & loves her job, so I'll pack her lunch in the morning, slapp her on the rump & tell her to bring home the bacon. I plan to keep busy a lot of the time--helping farmers with their harvesting, amongst other things to make a little more FUN $.
    Three things:
    I try hard to weigh out my options::: TOYS (Harley,jet ski,etc..) OR EARLY RETIREMENT. So far the latter has thankfully won out.
    I haven't visited the SS folks to see how big an effect drasticly reducing my earnings in my 50's will effect my pmts later.
    In my area the health ins cost is minimal @ 50+ years, so on my 50th B-day I'm planning on being gone like a freight train.
  7. satellitedriver

    satellitedriver Moderator Staff Member

    My exit plan is,
    "when I finally have had enough of this BS".
    I am debt free, and am only sticking around for the insane OT money.
    You should consider that you will probably live another 40yrs.
    Spend those precious years wisely.

  8. DS

    DS Fenderbender

    I hope I die before I get old
  9. LastBest&Final

    LastBest&Final To Endeavor To Persevere

    I never understood the reason behind taking your vacation before your actual retirement date, except to help management. After you leave the company all your vacation and optional holidays will be paid to you in one big check while you will still will be getting a retirement check, as long as you have worked enough hours for a year's credit.
  10. ups79

    ups79 Active Member

    In some locals, you do not start receiving a pension check until all vacations have been used in your final year.
  11. IWorkAsDirected

    IWorkAsDirected Outa browns on 04/30/09

    Yes, I had heard something about that, so I called everybody I could think of in the pension dept etc to make sure, and yes I cashed out all vacation and sick days. I was able to use that money to pay off a few bills I had, I had been helping out two of my kids who have drug and emotional/divorce problems so I wasn't completely out of debt. I had prepared however the best I could, getting into cheap housing etc and I've never been a big stuff person, though I have traveled extensively to 10 countries.
  12. Camping Nana

    Camping Nana Member

    We chose to do it by taking the vacation one week at a time rather than one "cash-out" check for several reasons...

    1) Tax bite - the lump sum distribution is taxed at a higher rate than weekly checks - yes, you will probably get it back when you file your tax return; however, who wants to let the gov't use that money interest free for that long....

    2) Due to personal reasons, there was a very minuscule possibility that we would decide not to retire - at the end of those "vacation" weeks, if DH had decided (for whatever strange reason) that retirement was not for him or if our moving plans didn't work out, he could have returned to work. Sure, he would have had to work the next five months without any time off other than holidays - but it could have been done.

    3) Don't really understand how you think it would help management. Probably they would prefer someone to cash out - work their last day and be done with it. Believe me, when we ran into the problem with a discrepancy from the payroll dept regarding accrued vacation, the center management team were very helpful - BUT they probably didn't appreciate having to deal with an issue for a "retired" employee.

    4) AFTER, everything was said and done, DH was on the phone with the pension administration office regarding another issue. When they realized that his "actual last day of work" was two and 1/2 months previously, they issued two pension checks - for the previous two months..... That was a blessing! :happy-very:

    Personally, we don't know of any hourly employees in our center that cashed out everything at one time... But I guess to each his own. This worked GREAT for us!
  13. satellitedriver

    satellitedriver Moderator Staff Member

    This is the way it works here.
    If you work to the end of September, you have earned the credits for next years vacation.
    Perfect timing,
    retire and get 6 weeks vacation pay just in time to miss another Peak.
    The other approach is to take your vacation weeks, then retire.
    Those 6 weeks of vacation give you 6 weeks of active employment which will increase your retirement paycheck.

  14. Braveheart

    Braveheart New Member

    If your retirement date is later in the year you may want to take a few vacations here and there to make sure you make it to retirement. All option days must be used while employed. Unlike vacations that they have to pay out options do not. So use those 7 option days as you need them. Like 3 day weekends, retirement planning, and so forth.

    We had a guy who thought he was retiring one year and took all time off at once. Back up plan failed.

    He had to work the rest of the year with no vacation or sick time left. Bad year made worse by poor planning.

    You better wite to Union pension fund and UPS pension fund way in advance to make sure there are no potholes.

    Diversify your 401k and move stuff out of the high risk as you get close.

    Pay off mortgage now and cars, boat, new roof, etc etc.

    Good luck!
  15. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The one point that I have yet to see mentioned is to develop interests outside of UPS. Too many retirees fail to do so and don't know what to do with themselves or with all of the free time.
  16. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Have you ever considered selling real estate after you retire from UPS?
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    My plan is to work right up to my 30th year and then take all of my vacation/sick/personal time. The Union has told me that I "can't" do this.
  18. bmwmc

    bmwmc Active Member

    Its true. I've talk to many a retiree and almost to a person wished they had stayed on. Sure the first year or two are great but then boredom begins. I think if they can expand some 22.3 jobs I would work 40 years or more. Heck, if I could get another 1-2 weeks paid vacation I would be off 8-9 weeks a year. That's plenty of time to travel the world and have a pocket full of money. I don't even like the word "retired." It sound like your quitting life. Life is work and god bless you if your work is what you like.

    For me its all about attitude.

  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I wasn't advocating working longer. I was talking about retiring with a plan. Hoke has a plan in place---he is going to be a photographer. I have 7 years to go but have already begun to formulate my plan. The worst thing would be to wake up the morning after and ask "What now?"
  20. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    This is consistent with my experience as well.
    Some people get involved in the church, some get involved in charities, some go to work for other companies, some form their own small business.
    There are not many who just sit at home and take care of the property.
    The consistent "aspect" I found of people that were actually happy in retirement was that they found an activity from which they gained purpose.
    Humans appear to need purpose and most need interaction with other humans.