Is anyone hearing about a new retirement package coming our for Management people this year? I heard a lump payout is coming and they are taking away our health benefits. Does anyone know details or a projected date? Will they "grandfather" people in? Details appreciated.
They have already made changes over the years to our retirement package. For health care, they capped the total dollar amount they will contribute to health care each year. For newer mgmt folks, they changed the plan from a defined benefit to a defined contribution. A defined contribution is one where they will put in a certain dollar amount per year based on a variety of factors and it acts almost like another 401K, but one that is funded by the company. If you leave, you get to take it with you, if the market does fantastic, you benefit. However, if the market has a large downturn, you have to deal with the consequences. The company does not have that liability as they do with the traditional pension for mgmt.
That being said, I'm sure that there will be other changes made. I find it hard to believe that UPS will keep the early retirement option of 55. I'm assuming that it will change to at least 2 years and probably 4 years later. But, that's just an assumption, I haven't heard any rumors to this effect.