KrookedHillary
Member
I just spoke with Computershare and they told me the shares will not be available in your account until 1/27! I guess it’s on their schedule.
MIP RSU Fast tracking
- Thread starter GayOfThrones
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Lineandinitial
Legio patria nostra
Sold mine last week
Thanks - another dumb question. I am two years from retirement and work at corporate. When I retire at 55 am I understanding it correctly that I will be able to continue with UPS health benefits and pay roughly the same annual premium under the UPS health plan for the following 10 years, until I qualify for Medicare at 65? For example, say I pay $5K annually now for medical and dental annual healthcare under the Aetna plan for my family. Will I be able to continue on the UPS healthcare plan after retirement under same Aetna plan and pay $5K annually until I am 65 for same coverage? Appreciate any feedback. Thanks again
Not a dumb question at all. I have never even considered it and I am starting to get close to retirement. If you search for retiree health care on UPSers it will pull up a link to the SPD for the retiree health care plan (RECHP). I don't know if it is shocking, but it doesn't clearly answer your question. It appears you go through the same process as active employees and have similar benefit options but doesn't list cost. I am assuming the cost is not subsidized by UPS like the active employee plan is so the cost would be the full amount. I am assuming you would apply the credits from the retirement plan towards that cost so that if you have 30 or more years you would have a credit of $7,500. If you have less than 30 years, it would be $250 per year of service.
We need an active retiree to answer this. Maybe @Old Man Jingles ?
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Old Man Jingles
Rat out of a cage
You can stay on the AETNA (for me) plan you are on as an active employee.
The cost is about $12,750 annually per individual.
Once you go on Medicare, UPS severs all relationship with you.
Fenris is correct on everything he answered.
Feel free to ask anything else.
I've been retired for 8 years and I started in 1973 so 40 years with UPS.
BROWN skid Mark
Member
Correction...sell shares that at are least one year old from the granted date. This moves any capital gain into a LONG TERM capital gain (20% tax rate). Next sell the shares with the highest cost basis first to minimize the amount of capital gains. Once they lapse they automatically move from Mellon to Computer share
This is a bit tricky and I don't remember the details but retirement health care benefits vary depending on when you started and how long you've been with the company. Something was changed about how you accrue health care "credits" sometime around 1992. It was at that time "enhanced" in a less than favorable way to the potential retiree.
When I retired in 2015 my annual health care cost went to zero vs. the significant monthly deduct from my paycheck when I was working, even though I stayed with Aetna using essentially the highest cost health care option available. Every year at enrollment time, just as when I was working, I go through the choices and select the coverages I want and at the end my retirement "credits" have zeroed out all costs. I'm not sure it will stay that way until I switch to Medicare in three more years but so far so good. My understanding is that at 65 Medicare becomes the primary insurer but that there are additional supplements you can purchase to improve the overall coverage. My understanding also is that UPS reimburses you for some or all of those supplements - again likely depending on what sort of retirement health care credits you have.
Sorry to be a bit vague (and wordy) about the details but it is very dependent on your specific situation. Hopefully, your out of pocket costs will go down when you retire. For me it was a big offset in the actual difference between take home pay - pay check vs. pension check. I know that in general as UPS continued to "enhance" the benefits to the management team over the years things like pensions and health care benefits became less of an incentive to go into mgmt or stay in.
Thanks all for the feedback. Can anyone clarify the "credits" you can use for healthcare coverage after you retire? I have only worked for 11 years and would have 13 years if I retire at 55. Also, I am surprised Old Man Jingles said that annual estimated out of pocket healthcare using Aetna would cost $12K+ per person per year. I am only paying $5K now annually to cover my wife and me. Can anyone clarify? And are you still considered a UPS "active employee" after you retire until you get to 65? Appreciate any info. Thanks!
When I retired in 2008 I was happily surprised I had enough credits to get no cost health care for 10 years until Medicare at age 65. I was credited with 36 years so the grandfather clause was what I was told by the person from Atlanta that I spoke to. Since you will only have 13 years make sure you get all the information you can get on line and with a live person if there are any left in Atlanta!
Yes, you should try to get a copy of the actual Plan itself and go through it. They're not always simple to read but they are the Bible as to what your benefits will be. I found that even the supposed experts weren't always correct in what they told me. I don't think it was dishonesty so much as ignorance or misinterpretation. There are often multiple formulas to go through depending on your particular situation so protect yourself with first hand knowledge - don't just take someone else's word.
Good luck!
CHEMA-DELMA
Well-Known Member
If nothing changes in your plan it won't cost you that much, years of service dictate what you will pay. you used to get 3 credits per year but that changed to 1 credit per year in I believe 1993 or 1994. I had 30 years at 57 currently pay about $250.00 per month for my Wife and I. been out 3 1/2 years it was $190.00 per month the first year,
Popeye
Well-Known Member
I retired in 2018 with 34 years. I haven’t had to pay anything out of pocket to maintain the same plan I was on when I was working. Just like while you’re working, the prices go up every year. In ‘21 I’ll have to pay $11 per month to keep the same benefits. But things depend a lot on when you started. With only 13 years you’ll be paying a lot out of pocket I suspect.
My numbers are about the same for years worked, but I pay $143/month. I retired in 2019 with 33 years in. Could that little difference account for the difference between what you pay and I pay? I chose the Aetna Plan. I suppose it could depend on what aetna plan you choose, we chose the low deductable
Popeye
Well-Known Member
Could be a different plan - I’m on the Aetna high deductible plan. Also, if you started a year or two after I did those early years count 3x what later years do in the formula so you may have a lower allowance due to that. I’m just taking a guess.
probably right. As with everything else with ups, its kind of a mystery
GayOfThrones
Active Member
Check your computershare accounts. It's there! Woot woot!
yes, but ml says i have 50 shares lapsing, but only 29 showed up in cs
UPS1907
Well-Known Member
Taxes
