I plan to retire around next April, age 55 with 26 years in management. I have been told that there is no health care coverage for management prior to 30 years of service-- is this true?
Nope.
Once you have 10 years of credited service, you get the medical, Prescription, vision and dental coverage from early retirement age until you are Medicare eligible.
The UPS Pension is vested at 5 years service but Retiree Healthcare is vested at 10 years service. These are two separate legal benefits with different rules.
From what I heard from folks who retired\close to retire. UPS sets aside a dollar amount per year worked. Also somewhere around 1990, the set rate was drastically decreased. So the formula was # years prior to the 1990ish * dollar amount + # yrs post 1990ish * lower dollar amount.
I don't know offhand the two different dollar amounts. But for a 25 year employee (me too) you'd only have a few years at the higher dollar amount. You'll probably have to pay a bit out of pocket initially. However, every year as health care costs go up you will be paying 100% of the increase. Also, when you hit 65 the dollar amounts change again (lowered) since all you need to purchase is a medicare supplement plan vs full blown insurance.
The year is 1992.
The DBA = $250 (Defined Benefit Amount) up to 30 years. Obviously any years prior to 1993 are used.
1992 and before is $750 per year served (3 DBAs).
1993 and after is $250 per year served (1 DBA).
The amount calculated is for you and your spouse gets a matching amount.
The amount provided for Medicare supplement is $42 per DBA for you and $42 per DBA for your spouse.
