questions about retirement

[Shady Tree at UPS]

allright before i start i'll go ahead and mention i know we dont start acculating until the age of 21.

-1st ive heard we can leave earliest at 10 yrs 21-31 yrs of age with penalties.
Is this true?

-But i've seen in the NMA that we can walk with 5 vested.
Which one is it?

-Finally if i leave with 8 yrs p/t and 17 yrs friend/t.
Thats 8 at 60.00 a month and 17 at 100.00 a month for a total of $2180.00. But i will be 46 at that time so is there still penalty? If so i can bypass this by putting in 30 and being 51 right?

 

[UpstateNYUPSer(Ret)]

You can walk at anytime; however, you have to have 5 years in to be vested. The simplest thing to do would be to do the 30 years and then relax and collect your pension. I would also advise that you set aside additional money (if you can) either in a 401k, Roth or conventional IRA, or whatever you choose to invest in, if you choose to invest at all.

Your local should have all of the literature that you would need to check out the options available to you if you do decide that you would like to leave early.

 

[Shady Tree at UPS]

i also am maxed out in 401k and dont seem to be making a whole lot...would an ira be better choice?

 

[Fnix]

What does the age 21 have to do with anything? So I would have been working at UPS for 5 years and it would not have counted towards anything?

 

[drewed]

i also am maxed out in 401k and dont seem to be making a whole lot...would an ira be better choice?

the max for a 401k is like 30%, are you contributing that much? with the economy the it is youre not going to see a whole lot of growth....ive seen supervisors loose 100K since the begining of the year because of the economy things will turn around and theyll get their money back plus some
a 401k has more potential for growth than an ira does and ira has more rules and penalties working against you....id buy treasury bond, i think last i read on a 3yrs your looking at 3% guaranteed.

 

[BleedBrown33]

yes, all service before 21 years of age does not count and used to not count until 25.

 

[New Englander]

yes, all service before 21 years of age does not count and used to not count until 25.

That is an absolute crock of crap. Gotta love The Teamsters sometimes. Does someone hired on at 18 not have to pay dues till they are 21?

 

[Chnandler Bong]

i also am maxed out in 401k and dont seem to be making a whole lot...would an ira be better choice?

I was told that it is best to max out a Roth IRA each year (for your spouse as well if applicable) and then look to your 401k. The Roth IRA grows tax-free. The 401k grows tax deferred. Big difference.

Also, look into the self managed 401k option. If you don't feel comfortable doing this yourself, find a financial advisor you can trust to guide you. There are tons of mutual funds out there that outperform the indexes on a regular basis. The generic options the Teamster site give us are not that great. Over time, they will do fine, but there are better options. And be diversified. Don't put all your eggs in one basket.

It's important to understand that all portfolios rise and fall, but they almost always make money over a 5-10 year period. If you are thinking you will be needing it before then you should look into other non-stock options.

Please note that these are opinions and you need to do your homework yourself. Ultimately our retirement is our responsibility. Also, make sure you have a will in place and some term life insurance.

 

[Chnandler Bong]

the max for a 401k is like 30%, are you contributing that much? with the economy the it is youre not going to see a whole lot of growth....ive seen supervisors loose 100K since the begining of the year because of the economy things will turn around and theyll get their money back plus some
a 401k has more potential for growth than an ira does and ira has more rules and penalties working against you....id buy treasury bond, i think last i read on a 3yrs your looking at 3% guaranteed.

Actually, when the economy is doing poorly I think it is a great time to invest. The idea is to buy low and sell high. 3% doesn't even keep up with inflation. There are money market accounts and cd's that will do better for the ultra conservatives out there.

Disclaimer: I am a truck driver, not a financial advisor.....

 

[BigBrownSanta]

i also am maxed out in 401k and dont seem to be making a whole lot...would an ira be better choice?

You've already maxed $15,500 in your 401(k)? If so, WOW!

You may want to look at a Roth IRA. You have to pay the taxes upfront, but it grows tax free. To me, the advantage of a Roth over a traditional IRA is that you can pull your original investment out without tax penalties if you run into an emergency later on down the road. That liquidity is important, IMO.

 

[BleedBrown33]

Keep point about discussion if you start at 17,18,19, or 20 yrs of age none of those years count towards your individual pension. Your accrual does not start until the age of 21. Thats the rule and it used to be 25 so be thankful its not that age anymore. If you are a union member at any age one you reach seniority you pay dues and somtimes an joining fee. My situation i started at 17 and yes my first 4 yrs dont count towards retirement and i payed hundreds in dues along the way. Another upside is most companies dont even have a pension so be thankful for what we do have and just fight to keep what we have earned.

 

[Mike Hawk]

After I worked here a year I got my pension statement and it said I had one of five years required to be vested, I started at 18.

 

[UPS Lifer]

Don't get confused what the word "vested" means. It means that after 5 years you will be entitled to a certain portion of money. You will have money that you can pull out of the pension fund at a future date. This portion depends on your hours accrued while contributions were placed in your pension fund.

So.... If you quit after 5 years once you are vested, you will only get a small portion probably in a lump sum and that is it!

Some folks think that being vested means they get their full pension.... this is not what it means.

 

[BleedBrown33]

Article 34 section (5)
Effective August 1, 2002, the Employer will grant additional years of Credited Service in accordance
with the terms of the Plan to all full-time and part-time employees on the payroll on August 1, 2002,
who worked for UPS after they were 21 but were denied Credited Service solely because the UPS
Pension Plan required that an employee be age 25 or older to participate in the UPS Pension Plan.

 

[JonFrum]

That is an absolute crock of crap. Gotta love The Teamsters sometimes. Does someone hired on at 18 not have to pay dues till they are 21?

New Englander, I believe they are talking about the UPS Pension Plan for part-timers in the Central States area. It's mentioned in the Contract, Article 34, Section 1, (i). This is a UPS administered, single-employer plan. There are no Teamster trustees. The fund is always in good financial shape because so few people actually qualify for retirement benefits, and those who do have to wait decades to begin collecting. By then the benefit isn't worth much.

ShadyTreeAtUPS, if you put in five vested years, you can collect a tiny pension, but you probably have to wait to begin collecting until "Normal Retirement Age" which is usually age 65!