That sounds about right. Don’t be surprised if in a few years you get a letter from Ups asking if you’ll take a lump sum payment at that time to get you off their books. A couple friends of mine have, they worked at Ups for 13 years, got a lump sum of $25g about 3 years after they quit.
If you want to collect before age 65 there is a 6 percent deduction for ever year prior, so you have 7 years in and vested after 5 you will get 7/30 percent of a standard 30 year retirement in whatever plan you were in at the time you left it. To keep it simple let us say you were a plan that paid 1,000 at full retirement, you would be eligible for 70 dollars at age 65. It gets better if you decide to collect those benefits at 55, that amount of 70 dollars gets reduced by 60 percent to a grand total of roughly 30 dollars a month. Like people are saying by the time that you will able to collect it that might buy in a happy meal at McDonalds. It would not even be worth the time to apply for them.
For those who have time in with the Part Time Pension Plan or the IBT/UPS Pension fund that formula applies to all of us, do the math. If you are lucky to reach that 25 year and age 57 service pension under the IBT/UPS plan of 2,000 you may count your blessings. The system is designed to physically and mentality prevent future retirees from collecting from those funds, the attrition rate has to be off the charts for those strong enough to survive this work environment for over 25 years.
You have to work in a pension plan for 5 years to be vested, if you leave you will get a lump sum which will be peanuts. With the way our current part time workforce leaves before 5 years, the company is saving a ton of money. If you are in a Defined Pension Plan like the part timers in my region they are not paying a weekly monetary amount into your pension even if you are vested over 5, under 5 the company is not required to give you nothing except for the meager lump sum just to get you off their books. Any defined pension plan is paid annually at the end of the year to cover just the promised benefits in the SPD, how article 34 master applies to any member under a defined pension fund has not been explained to me after many inquires.
That is why when I saw the 5 dollar per service year improvement with the part timers under this contract I laughed out loud and just knew where the rest of this contract was heading.
Dont feel bad , when you contact the pension people in Atlanta someday and they explain it. One really gets confused then. I do wish they would offer a lump sum buyout too old hourlies, i for one would look at it very hard.It is confusing, just try to read and understand the ERISA act that governs all Pension and Health and Welfare plans. With the UPS Retirement Plan for management ending in 2023 I can imagine that there will more buy outs or lump sum payment for those vested in that plan whether they are still working at UPS or not. Like you said "clearing the books", they save money by not administrating their benefits and helps their accounting practices.
If you have the service time in under the IBT/UPS plan you are protected from the six percent deduction except for your part time years. That service benefit only applies to your full time years under the Central and the IBT/UPS plans, you can retire with a combined part time and full time under that formula buy your pension will be reduced accordingly at that 6 percent penalty under the rules of both of them (the UPS Pension and the IBT/UPS plan). If I am wrong on this please correct me, but I have been involved with this pension issue for over 25 years now so I done a little research, not an expert or attorney, just a grunt in the trenches.
If I am wrong on this please correct me, but I have been involved with this pension issue for over 25 years now so I done a little research, not an expert or attorney, just a grunt in the trenches.