moreluck
golden ticket member
You could do the same comparison with Pelosi.......now that is really disgusting!!
UPS Health Benefits Shock for Retired Union Employees
- Thread starter kumet
- Start date
You could do the same comparison with Pelosi.......now that is really disgusting!!
Not really. I was making 6 figures when I left not counting benifits. Not bad for a truck driver. The people that took the biggest beating were the Managers. They didn't make much more than me but with the stock they could leave pretty wealthy. And they were "partners". I had two friends that left with over 7 million in stock. They were center managers. I even know a supervisor who played his cards right and has over 3 million. That kind of money doesn't filter down to that level anymore. The money is still there. They just keep a whole lot more at the top. The entire buisness philosophy changed over the years.
Just Numbers
Retired
Re: Health Benefit Shock
Did your financial advisor tell you that if you intend to roll it over to a Roth... the goverment wants the taxes for the pleasure of you converting to a Roth at the time it is done? You may be talking thousands of dollars up front to do this.
To get us back on topic: my gripe is that the UPS Retiree Health Plan has much inferior coverage than employee plan. In fact, if I am not mistaken, you can no longer buy a health plan this bad on the open market with annual and lifetime benefit limits. UPS is using the loophole that retirees are not employees, and therefore the UPS retiree health plan is not covered by the new Obama Care rules that prohibit annual and lifetime benefit limits. When you guys are lobbying for lower premiums, you might also lobby to do away with the annual and/or lifetime limits on benefit coverage.
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Ms.PacMan
Well-Known Member
Re: Health Benefit Shock
Many people do Roth conversions in retirement. In Upstate's case (based on the few posts I've read where he's spelled out his finances) he will lose half his pension to his ex-wife so he will probably be in a lower income tax bracket. Assuming he can afford to live on this amount of reduced pension, he can withdraw enough money from his trad. 401K, up to (or possibly thru to the next tax bracket), and place that money in a Roth IRA, each year until he is 70 1/2 (or until such time that it doesn't make financial sense). He benefits also because he is lowering his adjusted gross income (AGI)/ taxable income, by contibuting the max to his 401K now.
Yes, there is tax on a conversion. A person will never get out of paying taxes. But at what rate is the question every individual needs to figure out for themselves. There is also a risk or zigging when you should have zagged but........
If you have wiggle room between retirement and RMD's and have money in a tIRA or t401k then read up on conversions. Guide to Roth IRA, 401k and 403b Retirement Accounts
If you're a young person reading this, move along - Roth all the way!
Many people do Roth conversions in retirement. In Upstate's case (based on the few posts I've read where he's spelled out his finances) he will lose half his pension to his ex-wife so he will probably be in a lower income tax bracket. Assuming he can afford to live on this amount of reduced pension, he can withdraw enough money from his trad. 401K, up to (or possibly thru to the next tax bracket), and place that money in a Roth IRA, each year until he is 70 1/2 (or until such time that it doesn't make financial sense). He benefits also because he is lowering his adjusted gross income (AGI)/ taxable income, by contibuting the max to his 401K now.
Yes, there is tax on a conversion. A person will never get out of paying taxes. But at what rate is the question every individual needs to figure out for themselves. There is also a risk or zigging when you should have zagged but........
If you have wiggle room between retirement and RMD's and have money in a tIRA or t401k then read up on conversions. Guide to Roth IRA, 401k and 403b Retirement Accounts
If you're a young person reading this, move along - Roth all the way!
oldupsman
Well-Known Member
I knew at least 10 managers or supervisors who left as millioniares. And as far as I'm concerned they deserved it. You're right, that money doesn't come down to that level
anymore. Where did all that money go? Shareholders? Well I'm one of them too and I'm sure not seeing it. Stock price is flat, dividends minimal. I understand health care cost
more but let's be reasonable.
But there's another reason this is happening now. Our big expansion happened in the early to mid 80's. There's a whole bunch of people
coming up or at 30 years of service who want to retire. I'll bet alot of them are in their mid to late 50's. That means UPS will have to cover
them almost 10 years. Even longer if they raise the Medicare age to 67. This just doesn't affect retirees. It affects anybody who is even thinking
about retiring the next 5 years.
hope2retire
Member
Make sense---UPS??? No-the letter said per month. A single person now paying $50 per month will pay will pay $247.50 PER MONTH. I retired 2 MONTHS AGO!
family of 3
bet you didnt expect that.
UpstateNYUPSer(Ret)
Well-Known Member
Re: Health Benefit Shock
I misspoke---we are rolling it over in to a traditional IRA---there will be no tax consequences.
I misspoke---we are rolling it over in to a traditional IRA---there will be no tax consequences.
Catatonic
Nine Lives
Those people must have retired more than 5 years ago ... and more than likely 10 years or more ago.
moreluck
golden ticket member
Correct!!!
oldupsman
Well-Known Member
Well I've been out 5 years now going on 6 so yes you're correct. Most of the managers I started with are gone.
But alot of center manager's and above left with alot of money in the early 2000's. But gee Hoax, you've been around a long time.
You never got your finger in that pie? Or was that mostly daily operation guys.
trickpony1
Well-Known Member
Hoax's driveway costs more than the house I live in.
He's sitting on a bundle of stock.
Catatonic
Nine Lives
I doubt that but I would not want to have to pay to replace my concrete driveway.
The first owner was a builder and supposedly had it paved with "leftover" concrete from houses he was building.
Its 10 ft wide and 650 feet long - about $45,000 ... I have a feeling your house cost more than that.
I don't own any UPS stock BTW.
moreluck
golden ticket member
Don't the gypsies travel door to door around you? You could get your drive black topped for probably $6000 total.
Oh, by the way, there are no guarantees that come with that fabulous price.
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