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UPS Partners
Management Retirement at 59
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<blockquote data-quote="Yankfan" data-source="post: 1188861" data-attributes="member: 47932"><p>This is my biggest fear. As it has been posted on this forum a few times, I think the fact that UPS posts the "current cash value" of your pension on the Total Rewards Portal gives some insight to the future. The "total compensation" tab grossly over-estimates our total compensation by including your POTENTIAL MIP figure (maximum) resulting in total compensation that that looks great on paper but is completely unattainable given the continuous erosion of the MIP plan. Obviously, this over-statement of total compensation is meant to fool the employee into feeling a little better about their pay.</p><p></p><p>HOWEVER, the company doesn't seem to take the same approach with the next tab. The next tab shows the "current cash value" of your pension which the company grossly UNDER-STATES - at a rate of about 15-20 cents on the dollar when compared to the value of purchasing a similar annuity on the open market. If the company was trying to demostrate the VALUE of your total compensation package, wouldn't it make sense to give a more accurate figure here. Wouldn't that perhaps help sway an employee to think that this job may be worth the hassle/headaches. Afterall, if a very sizeable pension nestegg was being built, I know it would give me a different perspective on my compensation.</p><p></p><p>So why does UPS grossly understate the current cash value of your pension if they are trying to show the VALUE of your total compensation? The theory is that this is the next management concession. That sometime in near future, UPS will come up with some formula (similar to the enhancement to the MIP formula that produced a below average MIP in a year of record profits) that will be used to buy-out our pensions and dissolve the plan. The formula will spit out a figure that will be slightly above the "current cash value" (about $72,000 for a 19 year FT supervisor) of your pension <em><strong>as stated by UPS</strong>, </em>but will still be far below fair market value. This will allow UPS to spin the buyout as a "great deal for their employees" and then laugh all the way to bank.</p><p></p><p>I know this may seem far fetched to some, but how many of us would have said the same thing 5 years ago about the spousal exclusion? How many of us would have dismissed the thought of a year of record profits that resulted in a below average MIP as being impossible? Any thoughts that anyone has that refutes this theory would be greatly appreciated.</p></blockquote><p></p>
[QUOTE="Yankfan, post: 1188861, member: 47932"] This is my biggest fear. As it has been posted on this forum a few times, I think the fact that UPS posts the "current cash value" of your pension on the Total Rewards Portal gives some insight to the future. The "total compensation" tab grossly over-estimates our total compensation by including your POTENTIAL MIP figure (maximum) resulting in total compensation that that looks great on paper but is completely unattainable given the continuous erosion of the MIP plan. Obviously, this over-statement of total compensation is meant to fool the employee into feeling a little better about their pay. HOWEVER, the company doesn't seem to take the same approach with the next tab. The next tab shows the "current cash value" of your pension which the company grossly UNDER-STATES - at a rate of about 15-20 cents on the dollar when compared to the value of purchasing a similar annuity on the open market. If the company was trying to demostrate the VALUE of your total compensation package, wouldn't it make sense to give a more accurate figure here. Wouldn't that perhaps help sway an employee to think that this job may be worth the hassle/headaches. Afterall, if a very sizeable pension nestegg was being built, I know it would give me a different perspective on my compensation. So why does UPS grossly understate the current cash value of your pension if they are trying to show the VALUE of your total compensation? The theory is that this is the next management concession. That sometime in near future, UPS will come up with some formula (similar to the enhancement to the MIP formula that produced a below average MIP in a year of record profits) that will be used to buy-out our pensions and dissolve the plan. The formula will spit out a figure that will be slightly above the "current cash value" (about $72,000 for a 19 year FT supervisor) of your pension [I][B]as stated by UPS[/B], [/I]but will still be far below fair market value. This will allow UPS to spin the buyout as a "great deal for their employees" and then laugh all the way to bank. I know this may seem far fetched to some, but how many of us would have said the same thing 5 years ago about the spousal exclusion? How many of us would have dismissed the thought of a year of record profits that resulted in a below average MIP as being impossible? Any thoughts that anyone has that refutes this theory would be greatly appreciated. [/QUOTE]
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