Retirement - Part-time yrs. + Full-time yrs < What U Think (UPS/IBT Plan)

[pretender]

I hadn't considered the vesting in CSF and don't remember what was said about this way back when for the guys that fell shy.

It sucks to be in Central States.

Actually, I didn't know that either--I happened to stumble upon that fact when I was researching my response. I saved all of the literature I received when the switch was made, and saw it in the Q&A pamphlet.

 

[saintrick]

Lots of Q&A's on the site.

www.ibtupspensionfund.ups.com

Q16: If I worked for five years as a UPS part-timer covered by the UPS Pension Plan and another 25 years as a UPS driver, how would the pension be paid from the UPS/IBT Plan?
A: Since you have combined service of 30 years, you will qualify for a 30-Year Partial Service Pension from both the UPS Pension Plan and the UPS/IBT Plan. The UPS Pension Plan will pay you 5/30 of its 30-Year Service Pension that was applicable at the time you left that plan, and the new Plan will pay you 25/30 of its Service Pension.

 

[brown_trousers]

Bottom line is that considered to the rest of what the country gets, we in the Central States deserve an increase in our pension benefit. My hope is that my negotiating team will be successful in this matter.

That retirement money has to come from somewhere.... if the central states can only afford to pay so much money, where is the extra money going to come from?

 

[FAVREFAN]

Just a word of caution for all those full-time employees that have a significant number of part-time years with the company. Your full-time pension (Central States UPS/IBT) may not be what you think. I have calculated several full-time pensions based on the Summary Plan Document (SPD). Many full-time employees incorrectly believe that their part-time years count as 50% toward their full-time pension. In other words, if the employee worked 10 years part-time, that employee would receive 5 years credit toward their full-time pension. That belief is not correct. There is a specific example on page 16 or 17 of the SPD that will calculate the exact amount that you may expect to receive... Many full-time employees with part-time years have been very disappointed with what their actual pension is...

FWIW... The UPS Corporate Retirement department is severely understaffed and often lacking in complete information. It takes weeks to receive answers and many times those answers are incorrect. UPS Corporate lost two (2) years of my work record over the past 33+ years... Fortunately....I had saved EVERY pay stub since I started.... When I sent the last pay stub of each year in....they wanted me to calculate the number of hours worked for that year. I informed them that if they wanted that information.... I would bring all 100+ pay stubs to work and fax each of them on the company fax machine on company time... for some odd reason... I received a letter giving me credit for those two "lost" years.

Most people in my hub have no idea either. All the 22.3's have been mislead into believing this as well. All full-time pensions are different from local to local, state to state. But as for your part-time years with the company part-time pension..........there is a 6% reduction in payout for each year you begin to take it under the age of 65. Ex......If you did 15 years part-time and that came out at $55X15=$825(approximate) So at 65 you would get $825 for your part-time years.......but if you left at 55, it would be reduced. 65 full pay at 55 it would be reduced by 10 years X 6%=60% So the $825 becomes $495.
I got caught in this boat. Local 705.......I was going to go full-time(22.3) with 20 years in but since I plan on leaving by 55 it would make no sense pension wise. If I stay part-time I can get the 25 and out($1,125), 30 and out($1,650) or 35 and out($1,925) at any age without a reduction under age 65.
My scenario would have been 20yrs x $55($60 for last 5 years) = $1,125 minus 10 years X 6%. So my 20 years part-time would go from $1,125 all the way down to $450. No thanks, I'll stick with 2 jobs and get my 35 and out at 53($1,925) or hang on till 55 for insurance if they still offer it then.(doubt it)

Same scenario for drivers, part-time pension is reduced 6% each year before age 65.

 

[FAVREFAN]

Lots of Q&A's on the site.

www.ibtupspensionfund.ups.com

Q16: If I worked for five years as a UPS part-timer covered by the UPS Pension Plan and another 25 years as a UPS driver, how would the pension be paid from the UPS/IBT Plan?
A: Since you have combined service of 30 years, you will qualify for a 30-Year Partial Service Pension from both the UPS Pension Plan and the UPS/IBT Plan. The UPS Pension Plan will pay you 5/30 of its 30-Year Service Pension that was applicable at the time you left that plan, and the new Plan will pay you 25/30 of its Service Pension.

It's very clear there are different numbers going around. I agree with Saintrick. "applicable at the time you left that plan"

Here where I am, it's whatever the multiplier was when you went full-time. So if part-time years were $25 per year, that's your multiplier. If $55, it's $55. When they increased that multiplier for past years in newer contracts, it's only for people who are still part-time. That's why you are seeing some people at $25 per year, $40 per year or $55 per year. Also, the 30 year plan that people are mentioning for the central states is less than half of what the UPs pension Plan pays here in 705.

 

[BigUnionGuy]

It's very clear there are different numbers going around. I agree with Saintrick. "applicable at the time you left that plan" it's whatever the multiplier was when you went full-time.

And that was the way it was explained.... at every meeting I attended with CSPF.

I still have all the documentation that was handed out. Plus.... my personal notes.


Don't forget.... prior to 2002.... the 2% accrual rate.... for full-time with CSPF.



-Bug-

 

[saintrick]

Most people in my hub have no idea either. All the 22.3's have been mislead into believing this as well. All full-time pensions are different from local to local, state to state. But as for your part-time years with the company part-time pension..........there is a 6% reduction in payout for each year you begin to take it under the age of 65. Ex......If you did 15 years part-time and that came out at $55X15=$825(approximate) So at 65 you would get $825 for your part-time years.......but if you left at 55, it would be reduced. 65 full pay at 55 it would be reduced by 10 years X 6%=60% So the $825 becomes $495.
I got caught in this boat. Local 705.......I was going to go full-time(22.3) with 20 years in but since I plan on leaving by 55 it would make no sense pension wise. If I stay part-time I can get the 25 and out($1,125), 30 and out($1,650) or 35 and out($1,925) at any age without a reduction under age 65.
My scenario would have been 20yrs x $55($60 for last 5 years) = $1,125 minus 10 years X 6%. So my 20 years part-time would go from $1,125 all the way down to $450. No thanks, I'll stick with 2 jobs and get my 35 and out at 53($1,925) or hang on till 55 for insurance if they still offer it then.(doubt it)

Same scenario for drivers, part-time pension is reduced 6% each year before age 65.

The way I understand it you can still take the partial service pension at any age and not suffer a reduction.

example for 25 years 20 part time and 5 full time

1125 for any age 25 years (20/25 * 1125) = 900 for you part time years

2000 for any age 25 years (5/25 * 2000) = 400 for your full time years

You do not have to suffer a reduction because your combined service credit qualifies you for a service pension.

If you want to put 35 years in you could still retire at 53 will no reduction.

for 35 years 20 part time 15 full time

1925 at any age 35 years (20/35 * 1925) 1100

3500 at any age 35 years (15/35 * 3500) 1500


Am I reading SPD wrong?

 

[tranham]

Retirement - Part-time yrs. + Full-time yrs &lt; What U Think (UPS/IBT Plan)

Let me jump in and ask if any knows how PT years doing FT work will count? I worked several years at 40 - 60hrs a week in the hub / air driving. Also when I went to cover driver my vacations became paid at 45 hours the next year and for 3 years after that even though I was PT. Any chance this will help?

Robert

 

[Jones]

Re: Retirement - Part-time yrs. + Full-time yrs &lt; What U Think (UPS/IBT Plan)

Let me jump in and ask if any knows how PT years doing FT work will count? I worked several years at 40 - 60hrs a week in the hub / air driving. Also when I went to cover driver my vacations became paid at 45 hours the next year and for 3 years after that even though I was PT. Any chance this will help?

Robert

I doubt very much that it will make a difference, I know that under my pension plan it wouldn't matter how many hours you worked while PT, you have to be classified as FT before you get FT pension credit.

 

[FAVREFAN]

The way I understand it you can still take the partial service pension at any age and not suffer a reduction.

example for 25 years 20 part time and 5 full time

1125 for any age 25 years (20/25 * 1125) = 900 for you part time years

2000 for any age 25 years (5/25 * 2000) = 400 for your full time years

You do not have to suffer a reduction because your combined service credit qualifies you for a service pension.

If you want to put 35 years in you could still retire at 53 will no reduction.

for 35 years 20 part time 15 full time

1925 at any age 35 years (20/35 * 1925) 1100

3500 at any age 35 years (15/35 * 3500) 1500


Am I reading SPD wrong?

This is not true where I am. If your p.t. years were under 25 years when you went full-time, they will be reduced if you retire before age 65.
Got it from multiple sources on this site but more importantly the person in charge of this at UPS in my hub.
But if you hit the 25/30/35 and out and then go full-time, they can't reduce the part-time payout.
So if I went full-time after hitting 25 years, I would get it all unreduced.
The 25 and out multiplier is $45 but the 30/35 and outs have a $55 multiplier. It's really only an issue for long term part-timers. '
And remember, it seems that this is different in each part of the country even though most part-timers are under the same UPs Pension Plan. I just know how it is where I am.

 

[FAVREFAN]

Re: Retirement - Part-time yrs. + Full-time yrs &lt; What U Think (UPS/IBT Plan)

I doubt very much that it will make a difference, I know that under my pension plan it wouldn't matter how many hours you worked while PT, you have to be classified as FT before you get FT pension credit.

Same here.

 

[Coldworld]

Same here.

. In the western conference the contract says part time and full time employees of the bargaining unit shall be paid for each hour for which compensation was paid up to a maximum of 2080 hours per calendar year. It doesn't Say anything about part time maxing out at 1040 hours...I believe in the west if you worked 2080 part time you do get a full pension point for that year....

 

[saintrick]

This is not true where I am. If your p.t. years were under 25 years when you went full-time, they will be reduced if you retire before age 65.
Got it from multiple sources on this site but more importantly the person in charge of this at UPS in my hub.
But if you hit the 25/30/35 and out and then go full-time, they can't reduce the part-time payout.
So if I went full-time after hitting 25 years, I would get it all unreduced.
The 25 and out multiplier is $45 but the 30/35 and outs have a $55 multiplier. It's really only an issue for long term part-timers. '
And remember, it seems that this is different in each part of the country even though most part-timers are under the same UPs Pension Plan. I just know how it is where I am.

I would question the knowledge of any person on the hub level for pension advice. The 6% reduction applies to a normal accrued benefit taken before retirement age.

Your combined service credit qualifies you for a partial service pension at the 25/30/35.

If you are covered under the part time plan the rules apply to everyone no matter location.

If I am wrong please tell me. I am trying to understand this also.

 

[FAVREFAN]

. In the western conference the contract says part time and full time employees of the bargaining unit shall be paid for each hour for which compensation was paid up to a maximum of 2080 hours per calendar year. It doesn't Say anything about part time maxing out at 1040 hours...I believe in the west if you worked 2080 part time you do get a full pension point for that year....

Wow, that's nice. Wish it was that way here.

 

[FAVREFAN]

I would question the knowledge of any person on the hub level for pension advice. The 6% reduction applies to a normal accrued benefit taken before retirement age.

Your combined service credit qualifies you for a partial service pension at the 25/30/35.

If you are covered under the part time plan the rules apply to everyone no matter location.

If I am wrong please tell me. I am trying to understand this also.

I've been playing the "it's depends on where you are I guess" game. But, I agree, anyone under the UPS part-time pension has the same rules. Therefore...... gets the reduction under 65. It's a seperate check/seperate pension. I just don't want to russle feathers and start arguements. Listen, I've talked to multiple retirees on here who are actually getting the checks. Don't know how else to say it. I really don't care if anyone agrees or dissagrees with me. I was just supporting the original posters comment. As with anything, you have to do your own research. Find out for yourself. That way you can be confident in your knowledge, like I am. Peace and good luck.

 

[FAVREFAN]

The example says that the 30 year service pension payable from the UPS Pension Plan (the pt's plan) is $751. If you have 5 yrs part time it is calculated $751 X 5/30 = $125.17.
1 year = $25.03
2 year = $50.06
and so on......on a calculator you would take $751 x number of part time yrs, then divide by 30 to come up with the amount that will be added to your service pension for full-time years.

"The example says that the 30 year service pension payable from the UPS Pension Plan (the pt's plan) is $751."
$1,650 here for 30 and out from the UPS Pension Plan for part-timers........local 705.
So, in the end, who really knows. I've read that 90% of part-timers are all under the same plan with the same rules and pay outs. Apparently that may not be true either because wherever you are, you guys get severely hosed on your part-time years.

 

[oldngray]

"The example says that the 30 year service pension payable from the UPS Pension Plan (the pt's plan) is $751."
$1,650 here for 30 and out from the UPS Pension Plan for part-timers........local 705.
So, in the end, who really knows. I've read that 90% of part-timers are all under the same plan with the same rules and pay outs. Apparently that may not be true either because wherever you are, you guys get severely hosed on your part-time years.

Those numbers are correct for part time years of service pension ( which is independent of age). If you retire early that will probably be the about you will see. A regular pension is theoretically more but only if you are near normal retirement age because it is reduced by 6% per year under normal retirement age.

 

[saintrick]

"The example says that the 30 year service pension payable from the UPS Pension Plan (the pt's plan) is $751."
$1,650 here for 30 and out from the UPS Pension Plan for part-timers........local 705.
So, in the end, who really knows. I've read that 90% of part-timers are all under the same plan with the same rules and pay outs. Apparently that may not be true either because wherever you are, you guys get severely hosed on your part-time years.

The example is for a 30 year employee so the $751 would be the early 80's.

 

[tardus]

I believe that the company is intentionally keeping the employees with a split pension (with both part-time and full-time years) in the dark regarding their pension payment. Many employees who are approaching retirement with 30 years combined part-time and full-time years incorrectly think that they will be paid $55/year of part time service if they retire with 30 combined years at any age. But for those part-time years they will receive $55/year less 6% for every year they are under age 65. The exception would be anyone who reached one of the milestones: 25 years of part receiving $45/year; 30 or 35 years receiving $55/year.

 

[saintrick]

I believe that the company is intentionally keeping the employees with a split pension (with both part-time and full-time years) in the dark regarding their pension payment. Many employees who are approaching retirement with 30 years combined part-time and full-time years incorrectly think that they will be paid $55/year of part time service if they retire with 30 combined years at any age. But for those part-time years they will receive $55/year less 6% for every year they are under age 65. The exception would be anyone who reached one of the milestones: 25 years of part receiving $45/year; 30 or 35 years receiving $55/year.

The company is not keeping people in the dark both plan books are available to read.

The 6% reduction is only for the accrued benefit if taken before normal retirement age.

If your combined service credit (part time and full time years) hit the 25/30/35 marks you qualify for partial service pension that is unreduced at any age.

My previous post if form the UPS/IBT site and explains it clearly.

Lots of Q&A's on the site.

www.ibtupspensionfund.ups.com

Q16: If I worked for five years as a UPS part-timer covered by the UPS Pension Plan and another 25 years as a UPS driver, how would the pension be paid from the UPS/IBT Plan?
A: Since you have combined service of 30 years, you will qualify for a 30-Year Partial Service Pension from both the UPS Pension Plan and the UPS/IBT Plan. The UPS Pension Plan will pay you 5/30 of its 30-Year Service Pension that was applicable at the time you left that plan, and the new Plan will pay you 25/30 of its Service Pension.