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UPS subsidizing non ups pensions
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<blockquote data-quote="JonFrum" data-source="post: 140018"><p>I looked at the UPS Retirement Plan and the UPS Pension Plan on Free Erisa Dot Com. Both plans are run by UPS and they have about the same number of participants. I'm not a participant in either plan so about all I know is what I learned from examining their Forms 5500 for the years 2003 and 2004. Free Erisa provides the financial pages of the annual reports, but not the full 5500 filing or Summary Plan Description. Both plans are "maturing" plans, meaning they have been in existance long enough for early participants to have compleated their working career and reached retirement age. The management plan is 45 years old, and the hourly plan is 34. Unlike Social Security, these plans require that you earn your retirement checks by years of work and pension credit accumulation. On the other hand, Ida Mae Fuller, of Ludlow, Vermont, who became the first person to collect a Social Security check, contributed only $44 to Social Security, promptly turned 65, immediately began collecting checks, and lived to be a hundred! She collected nearly $21,000, getting back many times her "investment" and will always be the poster girl for why Social Security is headed for trouble. It was designed to be broke from the start. Private pension plans only pay benefits to people who actually earn them, through years of work and contributions. Thus a private plan has no retirees in the early years, and then gradually begins having more and more retirees as time goes on. </p><p></p><p>I've heard the UPS Pension Plan is mainly for bargaining unit part-timers in the Central States region, and the UPS Retirement Plan is for management people nationwide. As always, if anyone can contribute more information, feel free to add your two cents. Both plans have about 123,000 participants, but the management plan has about 9,000 retired people actually collecting benefit checks, while the plan for "hourlies" [I hate that term] has only about 800!!! An additional 900 survivors of deceased UPSers are entitled to benefit checks from the managment fund, only 200 from the hourly fund. I take all this as more evidence that it is hard to survive long enough at UPS to qualify for retirement benefits. Hard for management, really, really hard for hourlies. If you're one of the many who just don't make it to the retirement finish line, it doesn't matter much which plan you're in, a Teamsters plan or a UPSers-only plan like these two. If you don't qualify, you don't qualify. Period. All that money contributed on your behalf is forfeited. And if you think that when Central States UPS part-timers in the company plan forfeit their contributions, well, at least the forfeited funds are going to fellow Central States UPS part-timers, rather than subsidizing evil non-UPSers, well, maybe you should ask the few who do manage to collect retirement checks from the UPS Pension Plan if they have to use a wheelbarrow when they cash their monthly retirement checks. </p><p></p><p>The management plan has about 30,000 people who have seperated from the company but who are vested and can collect benefit checks some time in the future. The hourly plan has only about 17,000. Again, many hourlies just don't qualify, even in a UPSer-only plan. </p><p></p><p>The management plan's assets are nearly six times greater than the hourly plan. </p><p></p><p>Many think they could do better in the stock market than the professional Wall Streeters that manage the various Teamsters plans' investments. Actually, it's very hard to beat the market, especially year after year. UPS has no magic wand. The management fund made only 1.7% and 5.6%, and the hourly fund made only 1.2% and 5.1%. The hourly plan paid about $4 million to investment managers, the management fund paid an astounding $23 million!!! (Don't they realize I could have given them sound investment advice that would have exceeded their obtained results and I would have only hit them up for, oh, I don't know, say, $22 million, and maybe an extra week of vacation?)</p><p></p><p>The management fund had 346m to 469m dollars of UPS stock, the hourly fund had 39m to 53m dollars of UPS stock. Nothing necessarily wrong with owning company stock, as long as you realize you're putting many of your eggs in the same basket, especially if you also own UPS stock in your private account as well. If things go bad for UPS anytime during your 35 (or so) years of work, and your 17 (or so) years of retirement, your lack of financial diversity may come back to bite you.</p><p></p><p>[The numbers I am using are a very rough average of the 2003 and 2004 plan years. To keep things simple I'm using very round numbers. Look at the reports yourself to get the exact numbers, and draw your own conclusions.]</p></blockquote><p></p>
[QUOTE="JonFrum, post: 140018"] I looked at the UPS Retirement Plan and the UPS Pension Plan on Free Erisa Dot Com. Both plans are run by UPS and they have about the same number of participants. I'm not a participant in either plan so about all I know is what I learned from examining their Forms 5500 for the years 2003 and 2004. Free Erisa provides the financial pages of the annual reports, but not the full 5500 filing or Summary Plan Description. Both plans are "maturing" plans, meaning they have been in existance long enough for early participants to have compleated their working career and reached retirement age. The management plan is 45 years old, and the hourly plan is 34. Unlike Social Security, these plans require that you earn your retirement checks by years of work and pension credit accumulation. On the other hand, Ida Mae Fuller, of Ludlow, Vermont, who became the first person to collect a Social Security check, contributed only $44 to Social Security, promptly turned 65, immediately began collecting checks, and lived to be a hundred! She collected nearly $21,000, getting back many times her "investment" and will always be the poster girl for why Social Security is headed for trouble. It was designed to be broke from the start. Private pension plans only pay benefits to people who actually earn them, through years of work and contributions. Thus a private plan has no retirees in the early years, and then gradually begins having more and more retirees as time goes on. I've heard the UPS Pension Plan is mainly for bargaining unit part-timers in the Central States region, and the UPS Retirement Plan is for management people nationwide. As always, if anyone can contribute more information, feel free to add your two cents. Both plans have about 123,000 participants, but the management plan has about 9,000 retired people actually collecting benefit checks, while the plan for "hourlies" [I hate that term] has only about 800!!! An additional 900 survivors of deceased UPSers are entitled to benefit checks from the managment fund, only 200 from the hourly fund. I take all this as more evidence that it is hard to survive long enough at UPS to qualify for retirement benefits. Hard for management, really, really hard for hourlies. If you're one of the many who just don't make it to the retirement finish line, it doesn't matter much which plan you're in, a Teamsters plan or a UPSers-only plan like these two. If you don't qualify, you don't qualify. Period. All that money contributed on your behalf is forfeited. And if you think that when Central States UPS part-timers in the company plan forfeit their contributions, well, at least the forfeited funds are going to fellow Central States UPS part-timers, rather than subsidizing evil non-UPSers, well, maybe you should ask the few who do manage to collect retirement checks from the UPS Pension Plan if they have to use a wheelbarrow when they cash their monthly retirement checks. The management plan has about 30,000 people who have seperated from the company but who are vested and can collect benefit checks some time in the future. The hourly plan has only about 17,000. Again, many hourlies just don't qualify, even in a UPSer-only plan. The management plan's assets are nearly six times greater than the hourly plan. Many think they could do better in the stock market than the professional Wall Streeters that manage the various Teamsters plans' investments. Actually, it's very hard to beat the market, especially year after year. UPS has no magic wand. The management fund made only 1.7% and 5.6%, and the hourly fund made only 1.2% and 5.1%. The hourly plan paid about $4 million to investment managers, the management fund paid an astounding $23 million!!! (Don't they realize I could have given them sound investment advice that would have exceeded their obtained results and I would have only hit them up for, oh, I don't know, say, $22 million, and maybe an extra week of vacation?) The management fund had 346m to 469m dollars of UPS stock, the hourly fund had 39m to 53m dollars of UPS stock. Nothing necessarily wrong with owning company stock, as long as you realize you're putting many of your eggs in the same basket, especially if you also own UPS stock in your private account as well. If things go bad for UPS anytime during your 35 (or so) years of work, and your 17 (or so) years of retirement, your lack of financial diversity may come back to bite you. [The numbers I am using are a very rough average of the 2003 and 2004 plan years. To keep things simple I'm using very round numbers. Look at the reports yourself to get the exact numbers, and draw your own conclusions.] [/QUOTE]
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