Pension Buyout

Discussion in 'UPS Discussions' started by alex cariello, Sep 30, 2016.

  1. alex cariello

    alex cariello New Member

    Anyone receive a letter saying UPS was offering pension buyout? I f so, any ideas what that is about?
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    This is the first we have heard of this.
  3. alex cariello

    alex cariello New Member

    I will let you know what I get.
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  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I am on the edge of my chair.
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  5. Boulevard859710

    Boulevard859710 Active Member

    Give me a significant sum to just plunk in the bank for 15+ years and I might go for it. Question I have to ask and find out is what is considered a significant sum though.
  6. Mugarolla

    Mugarolla Light 'em up!

    Saw something posted somewhere.

    If I had to guess, I would say it involves employees who no longer work here but have worked here long enough to receive a small pension starting at age 65.

    UPS may want to get this liability off the books. Stock holders hate this kind of debt.

  7. alex cariello

    alex cariello New Member

    9yrs total 5 years in management.
  8. Coldworld

    Coldworld Well-Known Member

    So they con them with pennys on the dollar....
  9. Coldworld

    Coldworld Well-Known Member

    You basically get nothing especially for the mgt part...sorry
  10. Coldworld

    Coldworld Well-Known Member

    Sounds like an info commercial ....just expecting the dude from oxyclean or Phil swift from rubber in a can to start talking
  11. Austin.Was.My.Hero

    Austin.Was.My.Hero quod erat demonstrandum

    About time UPS attempted to get rid of dead weight the right way.
  12. LongGone

    LongGone New Member

    Received my buyout offer. 10 years fully vested, offered $33k cash taxed @ 30% or $175/mo for life. Haven't been @ UPS for almost 10 years. Wouldn't take less that $45k as retiring @ 65 w/current $875/mo pension living at least until 85 is over $200k. Rolling the $33k over into a Roth IRA with average 6% interest without any further contributions comes out to $215k @ 65. Let's hear what other offers are out there? Heard of another @ 6 years offered $16k. Might not be a bad idea as I'm seeing chatter of UPS pensions being cut in half due to all the retirements coming up in the next few years.
  13. Wally

    Wally Hailing from Parts Unknown.

    Just have a audit. Lots of dead weight there.
  14. 35years

    35years Active Member

    Sounds like UPS is looking to dump excess profit coming into the next contract.
  15. StoptheAct1212

    StoptheAct1212 Active Member

    I got about 20 years in.... i would take a nice payout and enjoy my life . But realistically i still have another 18 years tk go
  16. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    ...or they could be pandering to shareholders by taking advantage of the current IRS rules to shed a portion of their pension obligation...

    HEFFERNAN Huge Member

    I'm under the impression you can only put 5,500 a year in a Roth. 11,000 if you count it to last year as well.
    Also depends on your current salary, but you wouldn't be able to roll 33,000 right to a Roth.

    @UpstateNYUPSer Am I thinking this right?
  18. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You can only contribute up to $5,500 per year. There is no limit on the amount that you can roll over. I plan on rolling my 401k to my Roth IRA when I retire.
  19. And pay tax on the whole thing?
  20. He could put the money into a ROTH but he would need to pay taxes on the whole thing. You can't pay the taxes from the money that's being rolled over.