Maximizing management pension and change in pressure

[Fourscoreandzeroyears]

Maximize Pension:
Does anyone have any experience on how to maximize the management pension? Why do the last 1, 2, or 3 years of work before reaching 55 triple your estimated early retirement benefit? In fact when I estimate my pension using the retirement calculator, any calculation I use results in less than half of what I get if I wait till my 55th b-day. I will have more than 35 years at 55 but even if I left the company one month before I reach 55 by monthly estimate if less than half.

Performance Pressure:
In addition the pressure from my managers changed. In otherwords there seems to be a significant increase in the nitpicking of my work over the last year or two as if the organization is making my last years as painful as possible. I have never worked harder or smarter while achieving good or better results. Every aspect of my work is nitpicked. Is this an attempt to crack me before I hit 55 and get me out the door and save hundreds of thousands of dollars in pension costs? Talking to many partners that already retired said they experienced the same scenario and indicate the change in pressure is by design - an attempt to get you to leave before 55.

Any thoughts on the two scenarios above?

 

[beentheredonethat]

Re Pension: I'm kind of surprised that after this number of years you are asking this kind of question. "Normal" retirement is 65 and UPS has an "early" pension that you can get at 55, provided you have the minimum years of service in. If you leave before 55, then you "quit". Also, the amount you will make also is what you can draw at 65, not 55. (So not also is it lower, you have to wait 10 more years to get it). There's not much you can personally do to significantly alter your pension. In the pension calculator you can enter in different dates of when you retire from UPS. (Even changing the month in year can alter how much you receive). The pension is also based on some formula about best 5 consecutive out of last 10 years of salary (average).

Performance: I know that in the QPR's they are rating a lot tighter then they used to. What did you get on your most recent QPR? a 1-1.25? getting an "Acceptable". If so, that's now the "good" review to get and they want to use the bell curve and put everyone in that bucket (or should I say most people and a few get higher and a few get lower then that grade. There's really not a lot UPS can do to you. Similar to what a lot of the drivers post on the boards, document what you do and say. When in doubt, get advice\permission from your boss. They, the company, no longer want people who make decisions on their own. They just want people to do what they say. Once you stop caring and just do what they say, the easier the job is.

 

[1989]

So you can get your full pension at age 55? And is based on final average compensation on the retirement plan statement?

 

[jumpman23]

Theres no point in going into management nowadays. Bunch of bs everyday in management and way too much stress.

 

[beentheredonethat]

So you can get your full pension at age 55? And is based on final average compensation on the retirement plan statement?

You can get "A pension" at 55 so long as you have enough years in. (I do not know min years, since I'll have almost 35 by then and I am way above the minimum - i want to say 25 years though). As far as "full pension". The longer you stay usually the more you will make in a pension. I've gone to the retirement calculator and it's shown how I will get more if I stay to 57 more still if I stay at 59, 60, 62, 70. I ran through a few permutations just to get an idea of what the pension would be. Also, the calculator asks for certain facts and assumptions. (what you make now).. what you guess your increase will be in future years (2%,3% etc). I recomend that everyone should look at what is available to them in their own retirement calculator to get an idea of what you will get. (Keep in mind, there is no COLA), I'm very very fearful of big time inflation coming to artificially pay down the debt. That will leave people on fixed income screwed.

 

[1989]

Could one collect at 51 with 32 years of service?

 

[beentheredonethat]

1989: If you leave UPS at 51 then you QUIT, (as far as non union is concerned). However you are vested and do have a pension coming. However, you will not be able to start to collect until you are 65. Also, the amount you can collect is reduced significantly. (Approximately 3% per year starting from age 65 and working backwards). So you will have left 14 years early and multiply that by 3 gives you a 42% reduction in your benefits you would have received. (Plus don't forget that reduction is what you get starting at 65).

 

[oldngray]

1989: If you leave UPS at 51 then you QUIT, (as far as non union is concerned). However you are vested and do have a pension coming. However, you will not be able to start to collect until you are 65. Also, the amount you can collect is reduced significantly. (Approximately 3% per year starting from age 65 and working backwards). So you will have left 14 years early and multiply that by 3 gives you a 42% reduction in your benefits you would have received. (Plus don't forget that reduction is what you get starting at 65).

For union employees that is not true for all locals. Many have at any age for years of service pension, which is based on the number of years worked and not age. If you calculate pension the other way, then there IS a reduction per year based on age (6% per year I think) but it is potentially more if you are closer to normal retirement age. You get which ever way of calculating gives you the most. And if you are vested you draw that pension immediately upon retirement. This is a management thread and things are different for them. They do have age requirements.