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UPS Retirement Topics
Pension Protection Act
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<blockquote data-quote="wkmac" data-source="post: 54347"><p>I agree to use the current hourly contribution rate calculated for 30 years is misleading. What should have happened would have for been for McDevitt to use a formula for a current employee with 20 years, an employee with 10 years and then a new employee looking at 30 years just to show the examples. </p><p> </p><p>An employee with 20 years was paying $1.37 per hour at the start of their UPS career and if that contribution had stayed the same for 30 years with a growth of the 7.5% used by McDevitt you'd have $303k at the end of 30 years. </p><p> </p><p>A 10 year employee started at $2.50 per hour and after 30 years at 7.50% annual growth they'd have $564k in 30 years. </p><p> </p><p>Both these cases use a stagnant contribution rate of whatever it was when they began their career. This is not totally accurate because in fact the rate has gone up over time from contract to contract but it would be more real world than the example McDevitt used IMO. </p><p> </p><p>As for the hourly rates I used they came from the TDU article that M2C linked. I'm giving them the benefit of doubt these figures are correct. Anybody got another way to look at this I'm open to it and encourage it.</p></blockquote><p></p>
[QUOTE="wkmac, post: 54347"] I agree to use the current hourly contribution rate calculated for 30 years is misleading. What should have happened would have for been for McDevitt to use a formula for a current employee with 20 years, an employee with 10 years and then a new employee looking at 30 years just to show the examples. An employee with 20 years was paying $1.37 per hour at the start of their UPS career and if that contribution had stayed the same for 30 years with a growth of the 7.5% used by McDevitt you'd have $303k at the end of 30 years. A 10 year employee started at $2.50 per hour and after 30 years at 7.50% annual growth they'd have $564k in 30 years. Both these cases use a stagnant contribution rate of whatever it was when they began their career. This is not totally accurate because in fact the rate has gone up over time from contract to contract but it would be more real world than the example McDevitt used IMO. As for the hourly rates I used they came from the TDU article that M2C linked. I'm giving them the benefit of doubt these figures are correct. Anybody got another way to look at this I'm open to it and encourage it. [/QUOTE]
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