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Question regarding pensions.
- Thread starter Buffaloaf
- Start date
beentheredonethat
Well-Known Member
I'm still at least 12+ years away to get a pension. (Assuming they don't enhance it!!). So I haven't looked into it in detail yet, since I assume it will change by the time I get to retire.
The mgmt pension, counts your ft years (PT years are 1/2 FT year). It also looks at the best 5 of the last 7 years of yearly earnings and takes that avg. Then based on years of svc and avg salary it determines your retirment amount. Roughly from asking people close to retirement it's about 1/2 pay with about 30 - 35 years in. Also, you need minimums of 55 and minimums of 20 years of svc. Note, actual retirement is 65. (Years old). Most everyone talks about the early retirement which is 55 years old. For new mgmt folks the pension as it's known is gone. And new folks get basically the equivalent of extra money into a 401K type of mechanism. Retirment also covers health care to an extent. You'll get x dolars per year worked (different tier rates for before 1992 (or so) and after 92. This rate * years of svc is your total health care UPS will pay for. You will be liable for any remainder amount.
That's about all I know. I'm sure it will change by the time I retire.
The mgmt pension, counts your ft years (PT years are 1/2 FT year). It also looks at the best 5 of the last 7 years of yearly earnings and takes that avg. Then based on years of svc and avg salary it determines your retirment amount. Roughly from asking people close to retirement it's about 1/2 pay with about 30 - 35 years in. Also, you need minimums of 55 and minimums of 20 years of svc. Note, actual retirement is 65. (Years old). Most everyone talks about the early retirement which is 55 years old. For new mgmt folks the pension as it's known is gone. And new folks get basically the equivalent of extra money into a 401K type of mechanism. Retirment also covers health care to an extent. You'll get x dolars per year worked (different tier rates for before 1992 (or so) and after 92. This rate * years of svc is your total health care UPS will pay for. You will be liable for any remainder amount.
That's about all I know. I'm sure it will change by the time I retire.
Buffaloaf,
Go into UPSER.COM and use the retirement claculator. You will need to plug in your info and it will calculate what your pension will be given the date you plan to retire. I can tell you it is very accurate. My pension was within a couple of dollars of what the retirement program showed. It uses all the same formulas.
Can't say if you fall under the old defined benefit pension . Don't know when they changed the pension program. You would know if you are getting a match on your 401k contributions. I know the match was stopped in January09 so I can only assume they didn't stop the match for those that their whole pension is based on the 401k.
As for the retiree medical, as it is today, you get credits based on years of service and you are awarded $250.00 per credit each year. As an example, if you had 20 credits you would get $5,000./ yr towards the cost of your benefits. The cost depends on what coverage you want and if you want vision and dental. Your spouse gets an equal amount for Them. The cost to me this year was $9788.00 each, this included the best plan with both dental and vision. In my example you would have to pay the difference or $4788 for you and your wife. They bill you quarterly for any portion you owe. Most people that have been around a long time usually don't have any out of pocket costs, but it does go up each year.
Hope this helps.
"REMEMBER THE BIG FISH ALWAYS EATS THE LITTLE ONES
Go into UPSER.COM and use the retirement claculator. You will need to plug in your info and it will calculate what your pension will be given the date you plan to retire. I can tell you it is very accurate. My pension was within a couple of dollars of what the retirement program showed. It uses all the same formulas.
Can't say if you fall under the old defined benefit pension . Don't know when they changed the pension program. You would know if you are getting a match on your 401k contributions. I know the match was stopped in January09 so I can only assume they didn't stop the match for those that their whole pension is based on the 401k.
As for the retiree medical, as it is today, you get credits based on years of service and you are awarded $250.00 per credit each year. As an example, if you had 20 credits you would get $5,000./ yr towards the cost of your benefits. The cost depends on what coverage you want and if you want vision and dental. Your spouse gets an equal amount for Them. The cost to me this year was $9788.00 each, this included the best plan with both dental and vision. In my example you would have to pay the difference or $4788 for you and your wife. They bill you quarterly for any portion you owe. Most people that have been around a long time usually don't have any out of pocket costs, but it does go up each year.
Hope this helps.
"REMEMBER THE BIG FISH ALWAYS EATS THE LITTLE ONES
The new plan is a "Portable Account Formula"... Anyone born after after 1/1/1979 or hired after 1/1/2009 (not sure the exact date, but pretty sure it was 2009) was going to be switched, but the feds shut that down and said UPS could only use hire date as the criteria.
For those on the new plan, the 401K match was changed from 3% to 3.5% (no idea how that was impacted by the changes this year, since I'm on the old plan).
Additionally, UPS credits the employee's account based on their salary and age + service... 5% for < 35, 6% for 35 to 54, 7% for 55 to 74, and 8% for > 75. The account would invest the money in treasury notes with a guaranteed 2.5% return (if returns fell below 2.5%, UPS would credit the difference). The employee is 100% vested after 3 years and takes the entire balance with them if they leave UPS.
There may have been changes since that information came out (early 2008) but I haven't received any updates since I was informed I was still on the 'old' pension plan.
For those on the new plan, the 401K match was changed from 3% to 3.5% (no idea how that was impacted by the changes this year, since I'm on the old plan).
Additionally, UPS credits the employee's account based on their salary and age + service... 5% for < 35, 6% for 35 to 54, 7% for 55 to 74, and 8% for > 75. The account would invest the money in treasury notes with a guaranteed 2.5% return (if returns fell below 2.5%, UPS would credit the difference). The employee is 100% vested after 3 years and takes the entire balance with them if they leave UPS.
There may have been changes since that information came out (early 2008) but I haven't received any updates since I was informed I was still on the 'old' pension plan.
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