Isn't it really apathic why nobody knows how their pension is credited and the monetary benefit they would be eligible for with 30 years service. Some retirees make close to 6,000 dollars and others are lucky to get 2,000 with the same amount of years with union representation. Again try to get a straight answer from the people who show know and you will get smoke with no accountability.
Here is the scoop on how the central states and UPS pension plan works with their combined credits and monetary benefits:
a. There is a reciprocal agreement between the plans that combines your service (part time and full time years).
b. Your part time years are added to your full time years as full vested years if you work more than 750 hours in a full year. For example if you work 10 years part time and 20 years full time you can retire with 30 years credit.
c. The monetary formula with your part time years under the company plan (UPS pension plan) is based on a percentage of how much a thirty year benefit would be at the time you left the plan. For example 10 years equal 1/3 of roughly 1,000, your benefit from that plan would be about 333 a month. Trouble is that the plan only pays that 333 at normal retirement age of 65, if you retire earlier than that the amount is reduced six percent for every year before age 65. People wishing to retire at 55 will find that those 10 years would be reduced by 60
percent.
d. The part time monetary benefit is added to the monetary benefit with your years under the union's central states plan to get your total retirement payment. Under the central states plan the years before 2004 are averaged with 100 dollars per credit year, after 2004 I believe is formulated to about 85 dollars per year.
Now with anybody who has alot of years under the company plan in the central states area (most of the first and second year combo positions) do the math and most will discover that they could afford to retire earlier than 65. That means most of them will have to work over 40 years to retire with any reasonable pension benefit, and it will never reach those fellow union members who started out full time (example: 20 years part time = $750 a month/20 years full time = 2000, total with 40 years combined service would be 2750 at age 65 only). All this is subject to change on how well the central states fund performs, the 100 dollar per service year quoted is giving it's best face.
Also remember that your health and welfare on retirement is fair game at any time, in other words they could raise your monthy charges for coverage even if you retire. Can everybody see how both the company and union are pushing up the retirement age to counter the costs associated with covering their retirees. At age 62 you are automatically covered under the Medicare system, in most circumstances you lose any company or union medical coverages.
Good news is that most of the corporations and companies who are cutting their benefit plans are losing money, that cannot be said with UPS, the money is there. Who controls these funds is going to be the real battle
