Management Pension Buyout

Discussion in 'UPS Partners' started by Fourscoreandzeroyears, May 10, 2019.

  1. Whats the word on potential new management pension buyout?
     
  2. rod

    rod retired and happy

    They came to the conclusion you aren't worth it.
     
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  3. Bamboozled

    Bamboozled Member

  4. 542thruNthru

    542thruNthru Well-Known Member

    Its coming and it's going to be huge.
     
  5. RetiredIE

    RetiredIE Member

    The company wouldn't do anything to cheat you. If offered, by all means, TAKE IT. UPS always has your best interest in mind in everything it does. That's how it will be sold.

    Translation: UPS will NEVER do anything that doesn't benefit UPS. It is a zero sum game. Every dollar UPS saves will come out of your hide. Be wary, suspicious and afraid grasshopper.
     
  6. Average full time pension is worth nearly 1.5 million dollars over a 30 to 35 year period. Long live the retired.
     
  7. VacationIsCancelled

    VacationIsCancelled New Member

    There are a whole bunch of management folks in the 50-54.999999 years old range with 30+ years of service and pension credit. To "buyout" and cover the average monthly pension AND healthcare benefit a person would receive over the next 25 to 30 years of life, and figuring 4-5% interest over that time, UPS would have to pay each person like that something close to 1.5M net in today's dollars to truly "buyout". That ain't the way UPS operates.
     
  8. jeepguy63

    jeepguy63 Member

    Where would this cash come from?
    According to the 3/31 balance sheet on yahoo finance, UPS has $4.4 B in cash.
    UPS has borrowed $10’s of billions to try to maintain around 80% funding on their pension plans.
    Credit rating would plummet if they didn’t reduce long term debt at the same ratio they would reduce pension fund assets.

    The only changes coming would have to be more “enhancements.”
     
  9. That 4.4 might drop a little bit after they cut the retro checks and pay the back money to the pensions and health care.
     
  10. Kathykatkat

    Kathykatkat New Member

  11. jeepguy63

    jeepguy63 Member

  12. Lineandinitial

    Lineandinitial Active Member

    As long as the Teamsters get theirs, that's all that matters.
     
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  13. Bamboozled

    Bamboozled Member

    It looks like the new buzz word amongst large Share Holders these days is "De-Risking" their companies from their pension responsibilities.

    After reading several articles it looks like the playbook goes like this:

    1. End Pension contributions.

    2. Offer reduced buyouts

    3. Take the remaining pension responsibility problem and transfer the funds to an annuity insurance company.

    4. This company will distribute the monthly checks but is no longer insured. However the recipients can go after the company if the annuity goes under. But pensioners can’t go after the company if it has been sold or "transformed".

    So maybe they will de-risk the pension and Transform the company from UPS to UBS.....
     
  14. worldwide

    worldwide Active Member

    Oh, you men like this? Coming in the near future to UPS...might be in 2023 once pension contribution ends, could be sooner.

    FedEx to Purchase $6 Billion Group Annuity Contract from Metropolitan Life Insurance Company to Reduce Pension Obligations
     
  15. Lostoldman

    Lostoldman New Member

    The future looks bleak for "partners" in the longer term. We used to be able to compete by leveraging our partnership and by being a premium employer.We have "transformed" into an average at best employer and can no longer expect our future generation of talent to put up with our exceptionally out of touch expectations and leadership. Tough to find quality "partners" when the Unionized employees have far better benefits and protection.
     
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  16. Poop Head

    Poop Head Troll

    I'm fine with that!
    I'd like to think they'd finally change it to "United Parcel", but probably just end up as "Amazon Distribution Service".
     
  17. Indecisi0n

    Indecisi0n Well-Known Member

    I'm ready
     
  18. 542thruNthru

    542thruNthru Well-Known Member

    giphy-8.gif
     
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  19. PASinterference

    PASinterference Yes, I know I'm working late.

    What goes around comes around. You all got a taste of your own medicine and it's bitter.
     
  20. What'dyabringmetoday???

    What'dyabringmetoday??? Well-Known Member

    Is that how buyouts generally work?