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UPS Partners
Management Retirement at 59
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<blockquote data-quote="brownclown21" data-source="post: 1192666" data-attributes="member: 49496"><p>Let me see if I can make you feel a little better. Before I start, let me share some background information. I was hired several years ago into a financial related management position. Let me make it clear this is a low level position and I certainly do not have access to “inside” information. These are my opinions and are based solely on anecdotal information. So here are my reasons why the early retirement age for the Defined Benefit Pension Plan will not be raised:</p><p> </p><p>The company wants you to leave. You can be replaced with a new management person who will be paid a fraction of what you are currently making. Increasing the retirement age would only serve to keep you on the payroll longer…. something the company does not want. </p><p> </p><p>The Defined Benefit Pension Plan for Non-Management employees was closed (in 2007 I believe) to new employees. As such, plan liabilities will decrease over time as the number of plan participants goes down. My point here is that the plan will eventually disappear even if the company does nothing. </p><p> </p><p>Interest rates are rising, which means the discount rate used to value plan liabilities is going up. As the discount rate goes up, the cash contributions required of the company go down. Again, things are going to get better even if the company does nothing.</p><p> </p><p>In summary, I just don’t see a compelling reason for the company to increase the retirement age. The only way I see the retirement age going up is if the company suddenly finds it difficult to hire new talent. Then it might make sense to increase the retirement age. Otherwise, I just don’t see it happening.</p></blockquote><p></p>
[QUOTE="brownclown21, post: 1192666, member: 49496"] Let me see if I can make you feel a little better. Before I start, let me share some background information. I was hired several years ago into a financial related management position. Let me make it clear this is a low level position and I certainly do not have access to “inside” information. These are my opinions and are based solely on anecdotal information. So here are my reasons why the early retirement age for the Defined Benefit Pension Plan will not be raised: The company wants you to leave. You can be replaced with a new management person who will be paid a fraction of what you are currently making. Increasing the retirement age would only serve to keep you on the payroll longer…. something the company does not want. The Defined Benefit Pension Plan for Non-Management employees was closed (in 2007 I believe) to new employees. As such, plan liabilities will decrease over time as the number of plan participants goes down. My point here is that the plan will eventually disappear even if the company does nothing. Interest rates are rising, which means the discount rate used to value plan liabilities is going up. As the discount rate goes up, the cash contributions required of the company go down. Again, things are going to get better even if the company does nothing. In summary, I just don’t see a compelling reason for the company to increase the retirement age. The only way I see the retirement age going up is if the company suddenly finds it difficult to hire new talent. Then it might make sense to increase the retirement age. Otherwise, I just don’t see it happening. [/QUOTE]
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