UPS Special Pension Buyout Offer - December 2016

[jrhoderick]

Hey! after updating my info per the request of the pension servicer a few weeks ago, I received this in the mail.
Anyone else get one?
Any idea on what the lump sum offer might be?
I am vested at $740/mo
Thanks

I used this calculator to estimate it.

PensionBenefits, Inc. - Lump Sum Value Calculator

I do not know if its accurate. Mine came to $104,490.56 with a 731.70 monthly benefit.
Definitely worth considering.

Also, I called 1-855-216-8048. No representatives will be available until the 29th of this month.
time to wait

should be interesting.... there's not much online regarding how they calculate the lump sum amount. Anybody have an ball park estimate?

 

[scooby0048]

SSA backlog is crazy. Pretty much everyone under 50 years old gets denied right away unless you are terminal. Any ortopedic conditions (like 95% of UPS disability cases will be) have to go to a hearing with extensive medical evidence. On top of all that they closed one of their offices around here and are understaffed. They try to wait you out of the system. I guess it's in their best interest to make it as hard as they can.

...and yet my 47 year old sister in-law is on disability for mental reasons that she laughs and jokes about it. Amazing!

 

[ColtLester45]

should be interesting.... there's not much online regarding how they calculate the lump sum amount. Anybody have an ball park estimate?

I used the same formula as above, I'm 33 and qualify for a $465 a month benefit.

I'm supposed to start drawing at age 65 in 2048 and used today as the determination date. I checked the "ignore mortality table" option and changed the form of payment to Joint & 50% Survivor.

My total was calculated as

Lump Sum = Monthly Benefit x 12 x Lump Sum Factor
Lump Sum = 465 x 12 x 10.60785
Lump Sum = $59,191.80

I seriously doubt that UPS is going to offer to send me a check for $59K, that would just be crazy.

 

[Jaco Williams]

I used the same formula as above, I'm 33 and qualify for a $465 a month benefit.

I'm supposed to start drawing at age 65 in 2048 and used today as the determination date. I checked the "ignore mortality table" option and changed the form of payment to Joint & 50% Survivor.

My total was calculated as

Lump Sum = Monthly Benefit x 12 x Lump Sum Factor
Lump Sum = 465 x 12 x 10.60785
Lump Sum = $59,191.80

I seriously doubt that UPS is going to offer to send me a check for $59K, that would just be crazy.

Thats what a buyout is....

I'm lookin' at $80k myself.....

 

[UpstateNYUPSer(Ret)]

Thats what a buyout is....

I'm lookin' at $80k myself.....

Any buyout offer will be at least 30-40% lower than your projected lump sum.

 

[Jaco Williams]

Any buyout offer will be at least 30-40% lower than your projected lump sum.

I'm fine with that.
Taking the money and running.

 

[JMR07168]

Any buyout offer will be at least 30-40% lower than your projected lump sum.

Where are you getting the 30-40 from?
As far as I can tell an employer can offer the same, more, or less than the present day value.

 

[1989]

Where are you getting the 30-40 from?
As far as I can tell an employer can offer the same, more, or less than the present day value.

Come on, we're talking UPS here. They will only offer less. Besides 30% less today is more that 100% in 25+ years.

 

[JMR07168]

Come on, we're talking UPS here. They will only offer less. Besides 30% less today is more that 100% in 25+ years.

Lol so true.

 

[Jaco Williams]

In this article there is a spreadsheet you can download that has the formulas used to determine your lump sum value...

Maximize Your Pension With This Calculator

 

[Prissy0120]

I am not very familiar with how this works, so this maybe a stupid question. Are we permitted to take some of the money and roll the rest over? Will this eliminate some of the tax hit?

 

[UpstateNYUPSer(Ret)]

I am not very familiar with how this works, so this maybe a stupid question. Are we permitted to take some of the money and roll the rest over? Will this eliminate some of the tax hit?

This is one of the uncertainties that will hopefully be answered when the offers start hitting our mailboxes.

 

[Billy Ray]

I wouldn't even consider anything less than 10 years of face value.

Guess I need to break out the old fart actuary tables, and crunch some numbers.

Just remember, any number they offer you is heavily weighted to their advantage, or they would not have offered it.

 

[JMR07168]

Just remember, any number they offer you is heavily weighted to their advantage, or they would not have offered it.

If they offer an individual say $50k today as a buyout today it is clearly fiscally better for the company than the long term pension. However an individual can create an income stream that far exceeds what his monthly pension would have been well before age 65. I don't mean by getting lucky or rolling the dice either.
It matters what the person does with the money. It can be a win-win.

 

[saintrick]

Can I quit today and get this offer?

 

[Kimmie]

I was wondering if there are certain people they are offering this to? I am also vested and is to receive 550.00 a month when I turn 65 but I have not received a card in the mail.. I was a part time preloader for 10 yrs and went full time into driving for a little over a year. Or are people still receiving this letter? I think I am just gonna call them on the 29th of sept to try to see who all qualifies

 

[JMR07168]

I think I am just gonna call them on the 29th of sept to try to see who all qualifies

make sure your physical address is correct with [email protected]

 

[Kimmie]

Thanks!!. I will look into that...

 

[Post Trippin]

When i started i worked part time at the air dock. Someone who was there for 5 1/2 years part time had just quit. I ran into him a year later and had mentioned that UPS bought out his pension for $5,000. And this took place back in 2000.

I just received a letter from UPS saying my benefit would be $1073.61 per month for life at age 65 with limited spouse etc...
I did 7.5 part time & 7.5 full time.
So doing the math i wouldnt let UPS off the hook for anything less than $100k.
I have a feeling they are gonna offer 60months worth of payments. Hopefully i am wrong

 

[dookie stain]

I was in the "grandfathered" pension plan.... 15yrs vested or whatever... According to the math (if I did it correctly) in the UPS Retirement Plan (2007 is latest revision), I will be getting approx. $1450 a month at 65 until I kick the bucket. I found a spreadsheet on line (looking for the link now, I can't remember/find it dang it..!!) that calculates what your pension value will be like if you take the lump sum option. My lump sum is looking like $80k-$120k. Depends on if UPS calculates my retirement at 55 or 65yrs old.... Either way - Imma gonna take it..!!!

1450 a month!!!? I thought it was a lot more than that