Pension Buyout

Boulevard859710

Well-Known Member
Give me a significant sum to just plunk in the bank for 15+ years and I might go for it. Question I have to ask and find out is what is considered a significant sum though.
 

Mugarolla

Light 'em up!
Anyone receive a letter saying UPS was offering pension buyout? I friend so, any ideas what that is about?

Saw something posted somewhere.

If I had to guess, I would say it involves employees who no longer work here but have worked here long enough to receive a small pension starting at age 65.

UPS may want to get this liability off the books. Stock holders hate this kind of debt.

1475291008924.jpg
 

Coldworld

60 months and counting
Saw something posted somewhere.

If I had to guess, I would say it involves employees who no longer work here but have worked here long enough to receive a small pension starting at age 65.

UPS may want to get this liability off the books. Stock holders hate this kind of debt.

View attachment 98593
So they con them with pennys on the dollar....
 

Coldworld

60 months and counting
Saw something posted somewhere.

If I had to guess, I would say it involves employees who no longer work here but have worked here long enough to receive a small pension starting at age 65.

UPS may want to get this liability off the books. Stock holders hate this kind of debt.

View attachment 98593
Sounds like an info commercial ....just expecting the dude from oxyclean or Phil swift from rubber in a can to start talking
 

LongGone

New Member
Received my buyout offer. 10 years fully vested, offered $33k cash taxed @ 30% or $175/mo for life. Haven't been @ UPS for almost 10 years. Wouldn't take less that $45k as retiring @ 65 w/current $875/mo pension living at least until 85 is over $200k. Rolling the $33k over into a Roth IRA with average 6% interest without any further contributions comes out to $215k @ 65. Let's hear what other offers are out there? Heard of another @ 6 years offered $16k. Might not be a bad idea as I'm seeing chatter of UPS pensions being cut in half due to all the retirements coming up in the next few years.
 

HEFFERNAN

Huge Member
Received my buyout offer. 10 years fully vested, offered $33k cash taxed @ 30% or $175/mo for life. Haven't been @ UPS for almost 10 years. Wouldn't take less that $45k as retiring @ 65 w/current $875/mo pension living at least until 85 is over $200k. Rolling the $33k over into a Roth IRA with average 6% interest without any further contributions comes out to $215k @ 65. Let's hear what other offers are out there? Heard of another @ 6 years offered $16k. Might not be a bad idea as I'm seeing chatter of UPS pensions being cut in half due to all the retirements coming up in the next few years.

I'm under the impression you can only put 5,500 a year in a Roth. 11,000 if you count it to last year as well.
Also depends on your current salary, but you wouldn't be able to roll 33,000 right to a Roth.

@UpstateNYUPSer Am I thinking this right?
 

UpstateNYUPSer(Ret)

Well-Known Member
I'm under the impression you can only put 5,500 a year in a Roth. 11,000 if you count it to last year as well.
Also depends on your current salary, but you wouldn't be able to roll 33,000 right to a Roth.

@UpstateNYUPSer Am I thinking this right?

You can only contribute up to $5,500 per year. There is no limit on the amount that you can roll over. I plan on rolling my 401k to my Roth IRA when I retire.
 
I'm under the impression you can only put 5,500 a year in a Roth. 11,000 if you count it to last year as well.
Also depends on your current salary, but you wouldn't be able to roll 33,000 right to a Roth.

@UpstateNYUPSer Am I thinking this right?
He could put the money into a ROTH but he would need to pay taxes on the whole thing. You can't pay the taxes from the money that's being rolled over.
 
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