How does the accrual pension concept work for full timers?

1980wizard

New Member
A friend of mine just got his 35th year on Package Car. I retired over 2 years ago with 32 yrs. in Brown. We are both 58 yrs. old. He says he is in the Accural Pension Plan concept instead of years of driving concept that determines our pension. What is he talking about? I ask other retirees about it & they don’t know.
 

upschuck

Well-Known Member
Each year has a certain dollar amount attributed to it. Add those amounts up, subtract the penalty for early retirement, and that is your monthly payment. I think in CR, the amount for this present month is $175.
 

oldngray

nowhere special
Accrual is potentially more but linked to age. I think you lose 6% per year under 65. Years of service is fixed but less ... unless you are younger. I think the break even point where a years of service pension is more is around 58. They will calculate it both ways and give you the one with a greater amount.
 

upschuck

Well-Known Member
Accrual is potentially more but linked to age. I think you lose 6% per year under 65. Years of service is fixed but less ... unless you are younger. I think the break even point where a years of service pension is more is around 58. They will calculate it both ways and give you the one with a greater amount.
I believe it is age 62, not 65. 65 would be approx 45% deduction.
 

1989

Well-Known Member
A friend of mine just got his 35th year on Package Car. I retired over 2 years ago with 32 yrs. in Brown. We are both 58 yrs. old. He says he is in the Accural Pension Plan concept instead of years of driving concept that determines our pension. What is he talking about? I ask other retirees about it & they don’t know.
Here, I am told, once you hit peer 80 your pension is calculated monthly instead of yearly.
 

Jones

fILE A GRIEVE!
Staff member
Here our plan is accrual only, we don't have a straight "years of service" pension and since the accrual changes most guys have slightly different payouts for 30 years unless they started and retired at the same time. 5% reduction for each year of service under 30 or each year of age under 60, whichever is less ( if you retire at 58 with 25 years of service you would take a 10% reduction for being 2 years under 60 rather than the 25% reduction for 5 years of service under 30).
Early retirement at age 50 with a 50% reduction on your accrual if you have less than 25 years of service.
 

CoolStoryBro

Well-Known Member
Not sure. We have PEER 80 here. And the company contributes an hourly amount up to 2080 hours per year. If you work less than 2080 your pension will be smaller. it's based on how much UPS contributes on your behalf.
 

1989

Well-Known Member
Not sure. We have PEER 80 here. And the company contributes an hourly amount up to 2080 hours per year. If you work less than 2080 your pension will be smaller. it's based on how much UPS contributes on your behalf.
At a 1.2% accrual rate.
 
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