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UPS Retirement Topics
UPS subsidizing non ups pensions
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<blockquote data-quote="JonFrum" data-source="post: 135885"><p>UPS joined the New England fund when it began in 1958 and has contributed at the top hourly rate almost the entire time. Frequently UPS, and any knowledgeable observer, knows in advance that many of the employees hired will not, in fact, qualify for retirement benefits. Of course, only time will tell in an individual case, but one can be sure that large numbers of employees within a group will never see a retirement check, even if one can't know precisely which employees this will be. Simillarly, others in the group will only qualify for small retirement checks, but again, only time will tell exactly which employees they will be. </p><p></p><p>Based on the contribution rates in the current 6-year Contract, every time UPS (often knowingly) hires a full-timer who leaves before getting Vested, the following sums are contributed to the pension fund on the New Hire's behalf, and ultimately forfeited to the fund, for each year he worked:</p><p>August 1, 2002 thru August 1, 2003 $8,965</p><p>August 1, 2003 thru August 1, 2004 $9,277</p><p>August 1, 2004 thru August 1, 2005 $9,693</p><p>August 1, 2005 thru August 1, 2006 $10,109</p><p>August 1, 2006 thru August 1, 2007 $10,525</p><p>August 1, 2007 thru August 1, 2008 $10,941</p><p></p><p>A full-timer working, say, the last four years of the Contract then leaving "covered employment" would forfeit $41,268 of UPS' contributions to the fund on his behalf. Part-timers would forfeit about half these amounts. This forfeiting of contributions has been going on since Day One, although since it took ten years to vest prior to October 1, 1990, the number of years of contributions forfeited could be up to nine years or so back then. Those full-timers in the Central States fund would have larger sums abandoned than the above because your H & W raises are being diverted into the pension fund. The more you contribute, the more you abandon when you fail to qualify for a pension under the plan's rules. </p><p></p><p>It takes 750 hours to get a year of Vesting Service in a calandar year in the New England fund. At 40-hours a week, it would take over 16 weeks of employment for a full-timer to get Vesting Credit for that year, and about 33 weeks for a part-timer who works 20 hours a week. A part-timer who UPS gives only the contractual minimum of 3.5 hours a day (17.5 hours a week) will have to work 43 weeks to achieve a year of "full-time" Vesting Service. (There is a part-time scale which gives a year of Pension Credit for 830 hours in a calendar year, but the benefits earned are only half the full-time amounts.) A part-time air driver who UPS only gives the contractual minimum daily 3 hours to, needs 50 weeks work, nearly a full year, to earn that "full-time" year of Vesting Service. This makes it dificult for many new hires, full- or part-time, to get vested on the full-time scale during their first year of hire. Everyone hired during the Free Period of October - November - December will probably not get Vesting Credit for that year even if hired on October 1st. This includes drivers, part-timers, and driver's helpers. All that hourly rate pension contribution money is understood in advance by UPS to be forfeited to the pension fund, unless the employee subsequently goes on to achieve vesting by working under "covered employment" for five years at UPS or with some other contributing employer.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 135885"] UPS joined the New England fund when it began in 1958 and has contributed at the top hourly rate almost the entire time. Frequently UPS, and any knowledgeable observer, knows in advance that many of the employees hired will not, in fact, qualify for retirement benefits. Of course, only time will tell in an individual case, but one can be sure that large numbers of employees within a group will never see a retirement check, even if one can't know precisely which employees this will be. Simillarly, others in the group will only qualify for small retirement checks, but again, only time will tell exactly which employees they will be. Based on the contribution rates in the current 6-year Contract, every time UPS (often knowingly) hires a full-timer who leaves before getting Vested, the following sums are contributed to the pension fund on the New Hire's behalf, and ultimately forfeited to the fund, for each year he worked: August 1, 2002 thru August 1, 2003 $8,965 August 1, 2003 thru August 1, 2004 $9,277 August 1, 2004 thru August 1, 2005 $9,693 August 1, 2005 thru August 1, 2006 $10,109 August 1, 2006 thru August 1, 2007 $10,525 August 1, 2007 thru August 1, 2008 $10,941 A full-timer working, say, the last four years of the Contract then leaving "covered employment" would forfeit $41,268 of UPS' contributions to the fund on his behalf. Part-timers would forfeit about half these amounts. This forfeiting of contributions has been going on since Day One, although since it took ten years to vest prior to October 1, 1990, the number of years of contributions forfeited could be up to nine years or so back then. Those full-timers in the Central States fund would have larger sums abandoned than the above because your H & W raises are being diverted into the pension fund. The more you contribute, the more you abandon when you fail to qualify for a pension under the plan's rules. It takes 750 hours to get a year of Vesting Service in a calandar year in the New England fund. At 40-hours a week, it would take over 16 weeks of employment for a full-timer to get Vesting Credit for that year, and about 33 weeks for a part-timer who works 20 hours a week. A part-timer who UPS gives only the contractual minimum of 3.5 hours a day (17.5 hours a week) will have to work 43 weeks to achieve a year of "full-time" Vesting Service. (There is a part-time scale which gives a year of Pension Credit for 830 hours in a calendar year, but the benefits earned are only half the full-time amounts.) A part-time air driver who UPS only gives the contractual minimum daily 3 hours to, needs 50 weeks work, nearly a full year, to earn that "full-time" year of Vesting Service. This makes it dificult for many new hires, full- or part-time, to get vested on the full-time scale during their first year of hire. Everyone hired during the Free Period of October - November - December will probably not get Vesting Credit for that year even if hired on October 1st. This includes drivers, part-timers, and driver's helpers. All that hourly rate pension contribution money is understood in advance by UPS to be forfeited to the pension fund, unless the employee subsequently goes on to achieve vesting by working under "covered employment" for five years at UPS or with some other contributing employer. [/QUOTE]
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