UPS Special Pension Buyout Offer - December 2016

[Bagels]

Actually that 4% rate is pretty close. It is a mix with treasuries and bonds.

The decision four years ago to let companies blend the rate with corporate bonds (in lieu of treasury) is directly responsible for the subsequent unprecedented buyout offers. But more informed people generally reject these offers -- over the summer, E&Y offered a buyout with a discount rate near 8%; virtually nobody took it. Shocking, huh?

UPS will use a similar discount rate. Do you know why? Because most people will take the offer. -- that's pretty clear from the vibe in this thread. For many, even an amount of $10K is a lot of money; they'll convince themselves that it's their money and that they deserve it, and they'll blow through the money before April 15, when they're told they owe an additional $2K (in additional to the $2K withheld) in taxes. They'll whine & cry when the IRS levies their assets, and then in several years when realization hits that they relinquished their pension, they'll come onto these forums and complain they got screwed.

Don't see them being able to discount it with rates that high. 4% range is probably where most will see it. I guess it is possible though they could go lower to see how many they can write-off.. Discount it with a 20 year treasury rate and I may jump.

At 4%, I might change my recommendation. The rate will be closer to twice that.

It's funny how I get attacked when I never mocked you... kiss ***... All this from a truck driver that is a financial expert...

1) Your posting was directly targeted toward me, since I was one of only two people offering advice;
2) I'm a CPA, not a truck driver;
3) None of you are my clients and I could personally care less what decision you make. People pay me for my time and expertise, but I'm sharing it (in generalized form) to the community for those who desire to make an informed choice. Some people like yourself would take a case of beer and a blow-up doll and be happy -- that's your choice.

 

[Danny1963]

When I called 1800 number they said any body left company between 2001 through 2016 that longer works their

 

[Jaco Williams]

The decision four years ago to let companies blend the rate with corporate bonds (in lieu of treasury) is directly responsible for the subsequent unprecedented buyout offers. But more informed people generally reject these offers -- over the summer, E&Y offered a buyout with a discount rate near 8%; virtually nobody took it. Shocking, huh?

UPS will use a similar discount rate. Do you know why? Because most people will take the offer. -- that's pretty clear from the vibe in this thread. For many, even an amount of $10K is a lot of money; they'll convince themselves that it's their money and that they deserve it, and they'll blow through the money before April 15, when they're told they owe an additional $2K (in additional to the $2K withheld) in taxes. They'll whine & cry when the IRS levies their assets, and then in several years when realization hits that they relinquished their pension, they'll come onto these forums and complain they got screwed.



At 4%, I might change my recommendation. The rate will be closer to twice that.



1) Your posting was directly targeted toward me, since I was one of only two people offering advice;
2) I'm a CPA, not a truck driver;
3) None of you are my clients and I could personally care less what decision you make. People pay me for my time and expertise, but I'm sharing it (in generalized form) to the community for those who desire to make an informed choice. Some people like yourself would take a case of beer and a blow-up doll and be happy -- that's your choice.

Get over yourself. My post was not directed at you at all. There was a lot of "all over the board" info being posted way before you decided to chime in...

Happy bean counting...

 

[cosmo1]

.

 

[Danny1963]

Their alot people on here and ft and partime and were all getting the post cards. Then people wasnt in union either so dont knows what going until receive the packets .

 

[Bagels]

Their alot people on here and ft and partime and were all getting the post cards. Then people wasnt in union either so dont knows what going until receive the packets .

I really don't know why this is still being debated. The post card itself answers this -- the offer is being made to vested, non-active members of a pair of company-sponsored plans. It doesn't matter if you're FT, PT, union, non-union or management -- you just have to be a vested, non-active member of the company-sponsored plans. As I mentioned earlier, most of the plan participants are PT and management, given that most of the FTers are covered by Teamster and joint Teamster/company plans.

In my area, among non-management employees, PTers are covered by company-sponsored plans and FTers Teamster-sponsored plans; when FTers retire, they receive two checks - one from the company plan and the other from the IBT plan. Many have reported receiving the card, but obviously it only covers their PT, company-sponsored portion.

 

[Danny1963]

One more question, you must be least five years vested, right

 

[Kimmie]

Bagels..... I think it is nice that you are offering your services to people's that are truly interested in finding out what would be a better option for them. Keep on being the nice person that you are because there are people on here that are really taking in the information that you are giving them. Like myself..... A lot of us are clueless and maybe even a little nervous about making such a life changing desicion.

 

[retiredTxfeeder]

Bagels..... I think it is nice that you are offering your services to people's that are truly interested in finding out what would be a better option for them. Keep on being the nice person that you are because there are people on here that are really taking in the information that you are giving them.

Bagels, I agree with Kimmie. I haven't gotten the letter, and neither has my son, but some of us appreciate your information.

 

[margincharge1]

I really don't know why this is still being debated. The post card itself answers this -- the offer is being made to vested, non-active members of a pair of company-sponsored plans. It doesn't matter if you're FT, PT, union, non-union or management -- you just have to be a vested, non-active member of the company-sponsored plans. As I mentioned earlier, most of the plan participants are PT and management, given that most of the FTers are covered by Teamster and joint Teamster/company plans.

In my area, among non-management employees, PTers are covered by company-sponsored plans and FTers Teamster-sponsored plans; when FTers retire, they receive two checks - one from the company plan and the other from the IBT plan. Many have reported receiving the card, but obviously it only covers their PT, company-sponsored portion.

Bagels, I too agree with Kimme and RetiredTXfeeder. I appreciate your help. Margincharge

 

[UpstateNYUPSer(Ret)]

Bagels, I agree with Kimmie. I haven't gotten the letter, and neither has my son, but some of us appreciate your information.

Neither of you will receive the letter as neither of you qualify for the buyout.

 

[UpstateNYUPSer(Ret)]

One more question, you must be least five years vested, right

In order to receive a pension buyout you must be qualified to receive said pension.

 

[kevin durant]

receive the offe wtf UPS you

 

[Jaco Williams]

receive the offe wtf UPS you

Not a good deal huh...?

 

[Ruarlman]

NO!!!!!

 

[browngone]

What was your time and amount offered?

 

[UPSandy36109]

What was your time and amount offered?

What is the website you go under?

 

[walkman]

Don't see them being able to discount it with rates that high. 4% range is probably where most will see it. I guess it is possible though they could go lower to see how many they can write-off.. Discount it with a 20 year treasury rate and I may jump.

If you read the plan they filed with the SEC you will see that they use the rates the IRS posted in August of the year preceding the year the buyout is offered.

The decision four years ago to let companies blend the rate with corporate bonds (in lieu of treasury) is directly responsible for the subsequent unprecedented buyout offers. But more informed people generally reject these offers -- over the summer, E&Y offered a buyout with a discount rate near 8%; virtually nobody took it. Shocking, huh?

UPS will use a similar discount rate. Do you know why? Because most people will take the offer. -- that's pretty clear from the vibe in this thread. For many, even an amount of $10K is a lot of money; they'll convince themselves that it's their money and that they deserve it, and they'll blow through the money before April 15, when they're told they owe an additional $2K (in additional to the $2K withheld) in taxes. They'll whine & cry when the IRS levies their assets, and then in several years when realization hits that they relinquished their pension, they'll come onto these forums and complain they got screwed.



At 4%, I might change my recommendation. The rate will be closer to twice that.



1) Your posting was directly targeted toward me, since I was one of only two people offering advice;
2) I'm a CPA, not a truck driver;
3) None of you are my clients and I could personally care less what decision you make. People pay me for my time and expertise, but I'm sharing it (in generalized form) to the community for those who desire to make an informed choice. Some people like yourself would take a case of beer and a blow-up doll and be happy -- that's your choice.

If you read the plan they filed with the SEC you will see that they use the rates the IRS posted in August of the year preceding the year the buyout is offered.

 

[browngone]

What was your amount ?

receive the offe wtf UPS you

t

 

[TimmmyD]

Is it true that this offer is only for part time years?

I was fulltime with Supply Chain Solutions and I received a postcard.