Retirement - Part-time yrs. + Full-time yrs < What U Think (UPS/IBT Plan)

Discussion in 'UPS Discussions' started by InsideUPS, Feb 2, 2013.

  1. InsideUPS

    InsideUPS Active Member

    Just a word of caution for all those full-time employees that have a significant number of part-time years with the company. Your full-time pension (Central States UPS/IBT) may not be what you think. I have calculated several full-time pensions based on the Summary Plan Document (SPD). Many full-time employees incorrectly believe that their part-time years count as 50% toward their full-time pension. In other words, if the employee worked 10 years part-time, that employee would receive 5 years credit toward their full-time pension. That belief is not correct. There is a specific example on page 16 or 17 of the SPD that will calculate the exact amount that you may expect to receive... Many full-time employees with part-time years have been very disappointed with what their actual pension is...

    FWIW... The UPS Corporate Retirement department is severely understaffed and often lacking in complete information. It takes weeks to receive answers and many times those answers are incorrect. UPS Corporate lost two (2) years of my work record over the past 33+ years... Fortunately....I had saved EVERY pay stub since I started.... When I sent the last pay stub of each year in....they wanted me to calculate the number of hours worked for that year. I informed them that if they wanted that information.... I would bring all 100+ pay stubs to work and fax each of them on the company fax machine on company time... for some odd reason... I received a letter giving me credit for those two "lost" years.
     
  2. barnyard

    barnyard KTM rider Staff Member

    We just had a person retire in December and another retiring in May. It took 2-3 months for them to get their papers back.
     
  3. scratch

    scratch Least Best Moderator Staff Member

    The letter I finally received from them stated that I wouldn't get anything for my part time years until I turned 65. Its from a different plan, I will get about $435 a month for eight years of part time work. If the new contract would throw that in with my IBT/UPS Pension, I would be happy to retire in May when I hit 55.
     
  4. Ms.PacMan

    Ms.PacMan Well-Known Member

    The example says that the 30 year service pension payable from the UPS Pension Plan (the pt's plan) is $751. If you have 5 yrs part time it is calculated $751 X 5/30 = $125.17.
    1 year = $25.03
    2 year = $50.06
    and so on......on a calculator you would take $751 x number of part time yrs, then divide by 30 to come up with the amount that will be added to your service pension for full-time years.
     
  5. gorilla75jdw

    gorilla75jdw Active Member

    wow , I knew it was a different pay scale , but when you get to breaking it down like that , its freaking sad . I started on june 23rd 1993 , served 13 years part-time . I went full-time on july 24th 2006 until present .A Teamster retirement letter came in the mail about a year ago stating that my projected retirement date for unspecified years would be October 14th 2041 . Can somebody tell me that understands all this gibbly jibber jabber what kinda monthly retirement checks I will be recieving if I retire on that date . Thanks in advance .
     
  6. oldngray

    oldngray nowhere special

    Everything is so complicated basically nobody really understands because of different variables ( what local, the contract language when you were part time, your age, etc.) and UPS will admit the online calculator is only an estimate and not completely correct. Also there are different ways to calculate how much you will get for each part time year and you will get paid the highest amount from the different ways of calculating. If you are younger ( say mid 50's) Ms.PacMan was correct that in that situation you would get most from years of service pension which is $25 per month for every part time year of credit. Other locals quite possibly could see different numbers but that was what I got. (although it is $25.00, not $25.03 )
     
  7. Ms.PacMan

    Ms.PacMan Well-Known Member

    We're talking about The UPS/IBT Central States pension. Are you in Central States?

    The 10/14/2041 would put you at 48 years, 3 months, 3 days. So I'm assuming they are estimating that you would work long enough to get the minimum 25 years full-time. But you can retire with 25 years of combined service credit at a greatly reduced amount based on age.

    Like oldngray said - it's complicated and there are too many variables for each individual to guess.

    The old pension was an "and out" - the new pension takes into consideration the "and out" years and contributory years based on hours worked in a calendar year (1801) after 2008. Then it figures the pension both ways and gives you whichever is greater + any part time monies - reduced by a 1/2% per month for every month you are under 65 for the contributory service credit amount. All subject to changes each contract. Ugh.

    Also any pension monies earned before 2008 will be paid 100% by the old CSF (Central States multiemployer fund) when you turn age 65. If they are bankrupt then you will be paid a % by PBGC. (Rant - Combine this with the $495/mo for health care and we may all be eating cat food.)

    The contributory pension is greater than the "an out" pension amount so the more years you have after 2008, the more likely your pension will be higher and you won't have to worry as much about the old CSF going bankrupt.
     
  8. barnyard

    barnyard KTM rider Staff Member

    Ms Pacman gives a good explanation and if you comprehend what she wrote, you will understand why it is important to have your own 401k or other retirement savings. The future is very, very bleak for MEPP.
     
  9. pretender

    pretender Active Member

    I agree how the part time years are calculated: 13/30x751=325.43 (if you retire under the age of 65).

    I have a different understanding of your full time pension-I do not believe you will collect anything at all from Central States, since you were not vested in 2008, when the UPS/IBT took over. Your pension will come entirely from UPS/IBT, and you will get credit for 2006/07.

    Now is where it gets interesting. Your part time years count toward the required years for your service pension, so in theory you could retire this year and receive $700 from UPS/IBT and $325 from UPS. You can do the math for 25 and 30 years. However, given the number of years you were part time, if you stick it out long enough to get 30+ years full time, you would be eligible for much more per month from both your UPS and UPS/IBT pensions. The closer you get to the age of 65, you would be eligible for a regular pension as opposed to service.

    To repeat, this is just my understanding, so please don't just take my word for it...
     
  10. InsideUPS

    InsideUPS Active Member

    Directly From the SPD - Page 21

    Example for Part-time years + Full timeGrandfathered CSPF Participant Example 18 — Calculating Your 30-Year Partial Service Pension


    Let’s assume that John, a Grandfathered CSPF Participant, was originally hired as a part-time UPS Teamster-represented
    employee and earned five years of service under the UPS Pension Plan. With this service, he is eligible for a Partial Service
    Pension because he has 30 years of Combined Service Credit, including 25 years of Service Pension Credit (based on his
    full-time service) and five years of part-time service under the UPS Pension Plan.
    John’s Partial Service Pension will be $2,500. His monthly UPS/IBT Plan benefit equals $2,500 because it is based on a
    pro-rata portion of the 30-Year Service Pension ($3,000 x 25/30). John will receive this benefit from a combination of the
    UPS/IBT Plan and the CSPF.
    John will also receive a Service Pension benefit of $125.17 from the UPS Pension Plan for his part-time service on a
    pro-rata basis. The 30-year service pension payable from the UPS Pension Plan is $751 ($751 x 5/30 equals $125.17).
    The benefit will come from three sources as the following illustrates.
    John’s monthly benefit payable from age 50 to 65 is $2,625.17.
    UPS/IBT Plan monthly benefit: $2,500.00
    UPS Pension Plan monthly benefit: $125.17
    CSPF monthly benefit: + $0.00
    Total monthly benefit: $2,625.17

    John’s monthly benefit payable at age 65 and later is $2,625.17.
    UPS/IBT Plan monthly benefit: $176.00
    UPS Pension Plan monthly benefit: $125.17
    CSPF monthly benefit: + $2,324.00
    Total monthly benefit: $2,625.17
     
  11. oldngray

    oldngray nowhere special

    Part time credit for a regular pension instead of service is about $40 per month per year of credit minus 6% per year for each year under age 65 ( I think). I was just pulling those numbers from memory but even if you get the max amount its not much for part time years and if you are not almost 60 you get more from a years of service pension. Again I was just trying to pull numbers from memory so may be incorrect.
     
  12. pretender

    pretender Active Member

    That sounds right. I was happy to get anything at all for my part time years, since there was no pension back then.
     
  13. Notretiredyet

    Notretiredyet Active Member

    Bottom line is that considered to the rest of what the country gets, we in the Central States deserve an increase in our pension benefit. My hope is that my negotiating team will be successful in this matter.
     
  14. Ms.PacMan

    Ms.PacMan Well-Known Member

    I hadn't considered the vesting in CSF and don't remember what was said about this way back when for the guys that fell shy.

    It sucks to be in Central States.
     
  15. oldngray

    oldngray nowhere special

    Agreed. If we got a better pension the health care increases wouldn't be so bad.
     
  16. Ms.PacMan

    Ms.PacMan Well-Known Member

    Hard telling how the Teamsters will handle this. They charge those in Central States with Teamster insurance $400/mo for a couple I think so it's a little disingenous for the Teamsters to object to an increase that practically mirrors their own charges for retiree health care.

    A bump up in pension along with bringing the UPS retiree insurance in line with what the Teamsters charge could be one possibility. But if UPS does this, there is no incentive for locals to switch from Teamster to UPS insurance in the future.
     
  17. InsideUPS

    InsideUPS Active Member

    Each Local Union can negotiate it's own retiree health insurance with local health care institutions, etc.. It is not governed by UPS or the Teamsters. Your Local Union is instrumental in obtaining the best healthcare at the lowest rates... Retiree coverage in our Local is significantly less than $400 for a couple... Your Local has to BID and COMPARE to get the best rates... Yes...some individuals are still under the company plan at $50.00 others are independent and are private healthcare plans...negotiated by your Local....
     
  18. Ms.PacMan

    Ms.PacMan Well-Known Member

    InsideUPS - what you said is more than I've ever known about the differences in our healthcare insurance. How do you think they will negotiate the retiree insurance issue?
     
  19. Bad Gas!

    Bad Gas! Active Member

    You are corect Not Retired...Can you tell me why drivers in Central States get 36 k after 30 year at age 55 and drivers up North and outwest get around 66k for the same tenure...it makes no sense..Please enlighten you fellow local drivers...When you are retired you can move to alower cost of living if need be...I would have to work around 44 years(age 67) fulltime according to the UPS retirement calculater to reach 66k a year...I bust my tail everyday and put on my uniform just like the other locals throughtout the U.S.
     
  20. pretender

    pretender Active Member

    Correction: Not that you are going to retire this year, but I am not sure if there is a 20 and out provision...