Question About Early Retirement and Pension Lump Sum Distribution

[ThePackageDeli]

I'm hoping someone here can help me figure this out, or point me in the direction of someone who can...

If an employee quits or "retires" after 20 years with UPS, and are younger than age 50, how are their accrued pension credits handled?

Are they given a lump sum distribution based on actuarial tables?

Any clarity on this will be helpful, thank you!

 

[UpstateNYUPSer(Ret)]

I'm hoping someone here can help me figure this out, or point me in the direction of someone who can...

If an employee quits or "retires" after 20 years with UPS, and are younger than age 50, how are their accrued pension credits handled?

Are they given a lump sum distribution based on actuarial tables?

Any clarity on this will be helpful, thank you!

Nope.

You would receive a reduced pension when you turn 65 because you would not have the required years or service or minimum age required to receive a normal (full). If you had the age but not the years you would lose 6% for every year that you left early. Conversely, if you had the years but not the age, you could freeze your pension and start collecting when you reach the required age.

 

[Thebrownblob]

I'm hoping someone here can help me figure this out, or point me in the direction of someone who can...

If an employee quits or "retires" after 20 years with UPS, and are younger than age 50, how are their accrued pension credits handled?

Are they given a lump sum distribution based on actuarial tables?

Any clarity on this will be helpful, thank you!

You won’t get much. Sorry.

 

[ThePackageDeli]

Nope.

You would receive a reduced pension when you turn 65 because you would not have the required years or service or minimum age required to receive a normal (full). If you had the age but not the years you would lose 6% for every year that you left early. Conversely, if you had the years but not the age, you could freeze your pension and start collecting when you reach the required age.

I would lose 6% per year only if I chose to receive the pension early, correct? But I do have the choice to wait til age 65 to receive it?

 

[ThePackageDeli]

I have a family member who left UPS after 14 years and received a pension lump sum when he left. That's what leads me to think the same may apply to a 20 year scenario.

 

[IVE GOTTA PACKAGE 4U]

I have a family member who left UPS after 14 years and received a pension lump sum when he left. That's what leads me to think the same may apply to a 20 year scenario.

The only people I know that got a pension payout was the part-timers under the UPS pension plan.

Most of the pension plans do not allow lump sum distributions anymore.

 

[UpstateNYUPSer(Ret)]

I would lose 6% per year only if I chose to receive the pension early, correct? But I do have the choice to wait til age 65 to receive it?

You would not have the option to receive before 65 if you did not satisfy both the age and years of service requirements for a full pension.

 

[UpstateNYUPSer(Ret)]

I have a family member who left UPS after 14 years and received a pension lump sum when he left. That's what leads me to think the same may apply to a 20 year scenario.

I know that NYSTPF eliminated that option.

 

[Thebrownblob]

You would not have the option to receive before 65 if you did not satisfy both the age and years of service requirements for a full pension.

I have heard they have occasionally made that offer, mostly to part time employees. Definitely pennies on the dollar.

 

[UpstateNYUPSer(Ret)]

I have heard they have occasionally made that offer, mostly to part time employees. Definitely pennies on the dollar.

Now that you mention it, I do recall this being discussed on BC, but I think the buyouts were limited to the Company plan.