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