401k match back!

Discussion in 'UPS Partners' started by upssalesguy, Oct 20, 2010.

  1. upssalesguy

    upssalesguy UPS Defender

    this is great news. I am on vacation, so I missed the call, can someone help explain the "automatic deferal escalation?"

    is that additional match by UPS, over the 2.5% for being hired before 2008?
  2. pretzel_man

    pretzel_man Well-Known Member

    If you defer 5% of your pay, ups will match 2.5%. This is for those hired before 2008 (I think). Different formula (more match for the newer people). Of course they have less pension too.

    The automatic increase is for those that are not putting a certain amount in the 401K. It automatically increases your contribution by 1% (I think) each year until you reach 6%.

    If you already defer 6%, it does nothing. At least, I think the target is 6%.

    Call tomorrow on MIP.
  3. upssalesguy

    upssalesguy UPS Defender

    so basically, every year, UPS ups your contribution until it hits 6%. so someone like me who does 8% will only get the 2.5% and the automatic escalation is just UPS' way of increasing your own contribution....i'm dumb for thinking they would give me more match.

    that being said, please post in the MIP thread about the factor....if it's over 2, I might just go back to work on Monday.
  4. pretzel_man

    pretzel_man Well-Known Member

    Announcement in the morning. Strong rumors are 2.5 or better....

    At some level, the escalation is a way to get people to increase their own contribution. I guess if someone deferred 3% the first year, they would get 1.5% match. Second year (at raise time), their contribution would automatically become 4% and their match is 2%. Third year, they defer 5% with a 2.5% match. Fourth year 6% with a 2.5% match.

    Personally, I am all for this. In the old days, we took MIP in stock and were nearly forced to keep it there for the long term. Today, I am amazed when I give out MIP the % of people who take it all in cash. No savings at all. I'm worried about this younger generation.

    Of course I understand that stock hasn't grown but by taking it in cash and spending it, it is worth zero tomorrow.

    Oh well, I'm happy a match is back
  5. FracusBrown

    FracusBrown Ponies and Planes

    I must say they are pretty good at taking away money and making people feel good about it. The Teamsters would strike over loosing .5 percent. Management rejoices.

    Same theory applies to MIP. 2.5 sounds great, but under the old formula record profits would have dictated record MIP factors, but now management is happy to get half of 2.5 and have the other half held for 5 years with the potential of losing it if you quit or get fired.

    I expect another reduction somewhere. This is the first year the company takes a full hit on the MIP since the RSU were implemented. That combined with the 401k match means they'll be looking for savings somewhere.

    Get ready to get screwed and rejoice.

    PS Pretzel: Only 10 of 60 buildings have acheived 90% of telematics working properly. 10% to 40% don't work correcty in the other 50 locations. If you've got some pull, you oughta tell um to step back and take a close look. If they can't get it to work after months somethings wrong????
  6. pretzel_man

    pretzel_man Well-Known Member

    Well since you mentioned telematics.... I did go and double check what I said. I went right to the source and saw the corporate information. It was updated this June.

    Telematics sites are using about 6% less parts than non-telematics sites. Benefits in automotive are higher than originally planned (not tremendously) and operations benefits are much higher than originallly planned.

    I will be you the next level of deployment will be approved soon.

    If you don't believe me, call MH and see.

    Things being taken away is a matter of perspective. 401K match is relatively new.

    It wasn't that long ago that supervisors were added to MIP. Managers a little before that.

    Things change. They always have. A good management person figures out how to handle that change. If you want to hang on to the past, that's a sure way to fail... I guess we should go back to delivering on bicycles.
  7. upssalesguy

    upssalesguy UPS Defender

    Thank's Pretzel. I am from that younger generation (I'm 30) and I am amazed at the people that contribute nothing. I was talking to some of these new sales people, right out of college - they have a masters degree, but also still have a joint checking account with their parents. amazing how they do not understand money/savings.

    I usually take half in cash becasue it goes into the family savings, or is used to fund a roth IRA. In 2008, when our stock was in the crapper, I used it to buy all stock. That was a good move, it was at 43 or something like that. I'm taking the entire half in cash this year to save for another baby. The first baby is proving to be more expensive than her mother, which is an amazing feat!

    edit: one more quick one - so if you were hired before 2008, does this mean you are still going to get management "pension" or retirement from UPS? Does that mean 2008 and newer employees ONLY get their 401k?
  8. FracusBrown

    FracusBrown Ponies and Planes

    No doubt it'll be approved. Too many promises made to back out now. As soon as the next regime finds out what a bill of goods they've been sold it'll be unapproved or at least improved so it works.
  9. brownmonster

    brownmonster Man of Great Wisdom

    You shouldn't be funding your day to day life with the MIP. It was designed for long term savings so you could be well off in the future. Your constant worrying about the amount proves that you rely on this money for your day to day expenses. Kind of like Clark Griswold in Christmas Vacation. Don't buy the pool until the check is in your hands.
  10. pretzel_man

    pretzel_man Well-Known Member

    Let me know when you make the phone call. Let me know what you find out. I went to the source and found out for myself.

    Go find out....
  11. Popeye

    Popeye Member

    How can you take all of it in cash? Can't you only take 50% in cash? All but 50% is deferred in RSUs that arent really yours for up to 5 years. I take all I can in cash and wish I could take more. UPS stock isn't a good place to have too many of your eggs.
  12. pretzel_man

    pretzel_man Well-Known Member

    Sorry, I was unclear. I was talking about the people that take 100% of their election in cash. You are right... 50% is automatically put to the mellon account.
  13. Monkey Butt

    Monkey Butt Dark Prince of Double Standards Staff Member

    And to be perfectly clear - they are not deposited into Mellon until they vest in 5 years after they are awarded.
    In the year they are awarded, I'm not sure where they are deposited or if they are actually are deposited but they are tracked by Merrill Lynch.
    I believe the RSU's are just IOU's from UPS on paper until they vest.
    This allows UPS to keep these units of stock on record as owned by UPS until they vest.
  14. upssalesguy

    upssalesguy UPS Defender

    and to also encourage the mangement employee to stay.
  15. FracusBrown

    FracusBrown Ponies and Planes

    Just got off the phone. He said it's failing miserably, but so far only a few people have noticed.

    UPSSOCKS Well-Known Member

    I just got off the phone with Scott Davis and he said the 401k match is back. You guys crack me up. Did you use the top secret phone that only VIP's get that work for the company to make the call? Was the conversation in code? Tell me some more of the top secret information you know all about.. In fact call "you know who" and ask him when we are going to take over Fed-Ex ground once the RLA passes.
  17. pretzel_man

    pretzel_man Well-Known Member

    Funny.... I decided to check again today. I did mispeak however. It was not 6% reduction. It was 3%. Still at the estimated rate.

    Let me know when you really call him. If you need the number or email address, let me know.
  18. Coldworld

    Coldworld Taking it all back.....

    now now managers/supervisors, we'll have none of that tit tat here folks or hoaxster might have to shut the thread down. Keep all the anger in check until you can let it out on an hourly emloyee on monday. Feel like Im watching a dog fight...P-mans the german shepard, fracus is the "slow" dog chasing its tail and socks is the chiwawa with the jacked up back leg....wonder whos going to win?

    Just having a little fun.....dont freak out...