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UPS Retirement Topics
UPS Special Pension Buyout Offer - December 2016
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<blockquote data-quote="PiedmontSteward" data-source="post: 2376019" data-attributes="member: 42270"><p>This "offer" is only being sent to folks that have separated from the company (voluntarily or otherwise) that were vested in the PT pension plan. There are likely ten of thousands of former PT'ers with "some" vested credit (worked at least five years and quit) in the plan that are in the "liability" column even if they're only owed a $500 or so a month payment upon retirement. </p><p></p><p>Something to keep in mind is the "fiduciary duty" of the trustees of the plan. They're only going to cut a check for a lump sum if its in the best financial interest of the plan -- not necessarily the individual participant. I did the math with a member who voluntarily separated from the company recently; he would be owed approximately $900/month after age 65. Assuming he lives AT LEAST 20 years post-retirement (likely more as this would be in the 2050's/2060's and life expectancy has typically been rising but just trying to ballpark it) that's roughly $216,000 (granted, that'll be in 2050's dollars and cost of living/inflation go hand in hand with life expectancy.) </p><p></p><p>There's no way in hell the plan is going to cut a check for $216k, but it'd be interesting to see what formula they use for this "one-time offer." Admittedly, I'm a little suspicious as "one-time offers" are phrased that way in order to generate a sense of urgency so more member chomp at the bit. I'm also a little irritated that the "union trustees" of the plan haven't been able to filter any information down to the UPS BA's and stewards as the numbers are already set (they wouldn't send out the postcards if the actuaries hadn't already ran the numbers) as I have quite a few former employees that I'm in touch with that want as much time as possible to figure out their options.</p></blockquote><p></p>
[QUOTE="PiedmontSteward, post: 2376019, member: 42270"] This "offer" is only being sent to folks that have separated from the company (voluntarily or otherwise) that were vested in the PT pension plan. There are likely ten of thousands of former PT'ers with "some" vested credit (worked at least five years and quit) in the plan that are in the "liability" column even if they're only owed a $500 or so a month payment upon retirement. Something to keep in mind is the "fiduciary duty" of the trustees of the plan. They're only going to cut a check for a lump sum if its in the best financial interest of the plan -- not necessarily the individual participant. I did the math with a member who voluntarily separated from the company recently; he would be owed approximately $900/month after age 65. Assuming he lives AT LEAST 20 years post-retirement (likely more as this would be in the 2050's/2060's and life expectancy has typically been rising but just trying to ballpark it) that's roughly $216,000 (granted, that'll be in 2050's dollars and cost of living/inflation go hand in hand with life expectancy.) There's no way in hell the plan is going to cut a check for $216k, but it'd be interesting to see what formula they use for this "one-time offer." Admittedly, I'm a little suspicious as "one-time offers" are phrased that way in order to generate a sense of urgency so more member chomp at the bit. I'm also a little irritated that the "union trustees" of the plan haven't been able to filter any information down to the UPS BA's and stewards as the numbers are already set (they wouldn't send out the postcards if the actuaries hadn't already ran the numbers) as I have quite a few former employees that I'm in touch with that want as much time as possible to figure out their options. [/QUOTE]
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