In addition to our eingoing multi-employer pension plan obligations, we may have additional exposure with respect to
benefits eamed in the Central States Pension Fund (the ,CSPF"), frorn which UPS withdrew in 2007 in return for fully funding
its allocable share of unfirnded vested benefits thereunder. In 2015, CSPF submitted a proposed pension suspensiou plan to the
U.S. Departnnent of Treasury under the Multiemployer Pension Reform Act of 2014 (*MPRA") which proposes to make
retirement benefit reductions to CSPF participants, including to the benefits of certain UPS employee participants. Separately,
UPS agreed to provide supplemental benefits tmder the UPS/IBT Full-Time Employee Pension Plan to offset certain benefit
reductions under the CSPF. We have no other multi-employer pension plans subject to zuch a funding obligation. UPS has
reviewed the CSPF's proposed plan to evaluate the validity of the actions taken by the CSPF, the plan's compliance with the
MPRA (and proposed regulations thereunder) and its pctential impact on UPS's funding obligations under the {.IPSIIBT Full-
Time Employee Pension Plan. We are vigorously challenging the proposed suspension plan because it does not fully compty
with the law and we do not believe certain actions by CSPF are valid. Accordingly, we have not assumed or recognized a
liability for supplemental benefits within the UPSIIBT Full-Time Employee Pension Plan due to the submission of CSPF's
proposed plan to thg U.S. Department of Treasury. Further, we are not able to Estimate a range of additional obligationq if any,
or determine whether any such amounts are material due to a number of uncertainties relating to the MPRA (and proposed
regulations thereunder) and assumptions made by the CSPF in its proposed plan.
