No increase for accrual pensions

Discussion in 'UPS Union Issues' started by 35years, Aug 25, 2018.

  1. 35years

    35years Well-Known Member

    If I am not mistaken every contract has included an increase for accrual pensions. $0 increase in the current proposal for 5 years.

    IBT/UPS pension which many of us will receive.

    To keep up with inflation we should expect approximately a 15 percent increase.

    Slap in the face for long term teamsters who plan on retiring in the next 5-10 years.
    Last edited: Aug 25, 2018
  2. Just take the raises and put it in your 401k and make your own pension increases.
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  3. 35years

    35years Well-Known Member

    Less than inflation wage increases, lots of left over money for upping my 401k... .At least wages are going up over 10 percent over the 5 years.

    0 percent pension increase equals a pension cut.

    Over the course of retirement it adds the tune of over $150,000 if they had just raised it to keep up with inflation over the next 5 years.
    Last edited: Aug 25, 2018
  4. Lots of people get nothing for annual raises.

    I don't like the contract but I always manage to live on less than what I make

    Honestly I would love to see a small 401k to encourage people to save on their own.
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    Last edited: Aug 25, 2018
  5. 35years

    35years Well-Known Member

    Teamsters with 25 plus years tend to vote on contract proposals and in elections.

    UPS Teamsters have always received pension increases in past contracts. The company is not hurting...

    Just kind of surprised they would get stiffed.
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  6. DriveInDriveOut

    DriveInDriveOut Proud Deplorable

    F* the pension.
  7. Old Man Jingles

    Old Man Jingles Rat out of a cage

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  8. Old Man Jingles

    Old Man Jingles Rat out of a cage

    That's what I did for my last 20 years ... before that I bought stocks with it.
  9. DriveInDriveOut

    DriveInDriveOut Proud Deplorable

    look at the amount going in and the amount you draw.
    compare it to basic index funds on the open market.
    it's a garbage investment.
    simple math.
  10. Old Man Jingles

    Old Man Jingles Rat out of a cage

    Throw in that one's pension is no more secure than a conservatively invested portfolio and it really starts to suck.
    Many don't want to be involved in investment decisions and so for them, a pension is better.
  11. DriveInDriveOut

    DriveInDriveOut Proud Deplorable

    So stick the ignorants in a target date fund and call it a day.
    If the government stopped allowing people to withdraw their 401k funds for homes and education and all the other hardship garbage they would be protected from their own stupidity. The problem is all the banking lobbyists that want to keep profiting off of people's bad choices.
  12. Jones

    Jones fILE A GRIEVE! Staff Member

    We're getting the same increase as everybody else, $1 per hour per year.
  13. Maplewood

    Maplewood Active Member

    Out west i think we get $1 per year for our health care. If the health care plan goes up 50 cents, then the other .50 goes into pension.
  14. 35years

    35years Well-Known Member

    Please note this is the accrual based (not the 25,30 35 and out) pension for the UPS/IBT pension plan.

    Central Region Supplement:

    (2) The benefit formula for current or future full-time employees who are participants in the UPS/IBT Plan will be as set forth below for each year of future service (hours worked in Covered Employment on or after the effective date) up to a maximum of thirtyfive (35) years of Credited Service (such limitation is only applicable to service pensions). This benefit is unreduced if payable at Normal Retirement Age (age 65) and 5 years of vesting service or at age 62 with 20 years of Credited Service. Benefit payments may begin as early as Early Retirement Age (age 50 with five years of vesting service) and are reduced 6% per year for each year and partial year prior to Normal Retirement Age. There shall be no reduction or change in the level of benefits described herein unless negotiated and agreed to by the Union.

    Calendar Year Beginning Monthly Benefit:

    2008-2013 contract:
    January 1, 2008 $132.00
    January 1, 2009 $132.00
    January 1, 2010 $135.50
    January 1, 2011 $147.00
    January 1, 2012 $158.50
    January 1, 2013 $170.00

    2013-2018 contract
    January 1, 2014 $170.00
    January 1, 2015 $170.00
    January 1, 2016 $170.00
    January 1, 2017 $170.00
    January 1, 2018 $175.00

    New Proposal...
    January 1, 2019$175.00
    January 1, 2020 $175.00
    January 1, 2021 $175.00
    January 1, 2022 $175.00
    January 1, 2023 $175.00

    So from 2013-2023 an increase of $5.
    And no increase at all for the 5 years of the proposal.

    $170 in 2013 is worth:
    $183 in 2018 using historical inflation data
    $234 in 2023 projecting 2.9% going forward (current inflation rate)

    $234 does not = $175

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    Last edited: Aug 26, 2018
  15. SameRightsForAll

    SameRightsForAll Active Member

    What good is the 401k if UPS refuses to match not even a penny. I think they need to go back and retro-match every dollar for the past 15 years. The greed of this company is so far off the scale that nobody can even get a grip on the situation.
  16. Jones

    Jones fILE A GRIEVE! Staff Member

    I know for our pension the accrual rate is set by the fund's actuaries based on the health of the fund, it's not set by the contract.
  17. UPS pays a lot of money inro a pension plan on our behalf. Not too many places even offer a pension anymore. You putting money into a 401k plan is to save for your future and maybe some tax breaks now.
  18. Inthegame

    Inthegame Well-Known Member

    Looks like you're mixing mathematical metaphors...

    The future service credit model UPS uses was never inflation adjusted. The terms are negotiated.

    It would be highly unusual to set accrual rates that pay out far into the future on a past yearly inflation rate.

    If you do the mathematical exercise (add the yearly inflation rate of each successive year to the base rate of $132), you'll see that had the accrual been pegged to inflation for the period 2008-2017 (as you apparently wish), the rate would now be at $155, not $175.

    Inflation over that period averaged 1.69%.
  19. upschuck

    upschuck Well-Known Member

    $5 over 10 year is pitiful
  20. Inthegame

    Inthegame Well-Known Member

    No argument on that from me. I was just questioning how the poster put inflation where it didn't fit.