UPS to pay pension up to Normal Retirement Date?

Discussion in 'UPS Retirement Topics' started by BrownDead, Jul 9, 2018.

  1. BrownDead

    BrownDead New Member

    Our contract states UPS will pay my pension up to my NRD (normal retirement date).
    Stating the "Normal"age as 65. My Social Security documentation says my "Normal" retirement age is 67. Will UPS continue to pay up to age 67? I'm in Central States.
     
  2. Old Man Jingles

    Old Man Jingles Rat out of a cage

    Nope
    There is no standard for NRD.
    Each program has its own definition of NRD.
    Social Security historically had the NRD as 65 and so that is the common NRD that most contracts state and use.
    The Pension document is a contract and each contract defines terms and conditions that are specific to that contractual agreement.
     
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    Last edited: Jul 9, 2018
  3. old levi's

    old levi's I use to care... but things have changed

    As soon as you hit 65 your pension payout will be equally split between UPS/IBT and Central States.
    Also Teamcare will drop you like a hot potato. If you start SS before 65 that will automatically enroll you in Medicare, parts A and B.
     
  4. onehandsolo

    onehandsolo Active Member

    If the central states plan is reduced. The UPS/IBT plan is obligated to cover the amount of the reduction.
     
  5. ski or die

    ski or die Ski or Die

    Nope. Teamcare continues until 1st day of the month of your birthday. Cannot go on Medicare until 65 unless its a disability. And you are not automatically enrolled in Part B. That is your option. And you have to enroll within 6 months of your birthday or you will have to go through underwriting which could cause problems with pre-existing condition.
     
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  6. old levi's

    old levi's I use to care... but things have changed

    Read it again, slowly this time.
     
  7. ski or die

    ski or die Ski or Die

     
  8. DELACROIX

    DELACROIX In the Spirit of Honore' Daumier

    Correct..There are penalty percentages prior to age 65 in most Pension trusts..Currently it is 6 percent in the IBT/UPS and the UPS Pension Plan for part timers. That means you are subject to a reduction of six percent for every year prior to age 65..If you decide to retire, quit or are not long in that plan and do not have the time in for a service pension your benefits will be cut. For example: At age 55 if you decide to call it quits your monetary benefits will be cut by 60 percent (6 x 10) the formula is simple after that with a little math skills.
     
  9. ski or die

    ski or die Ski or Die

    I was responding to your comment "If you start SS before 65 that will automatically enroll you in Medicare Part A and B." That part is not correct. You cannot enroll in Medicare before the 1st day of the month of your 65th birthday unless it is a disability. Even if you take SS at age 62, you cannot obtain Medicare until 65, which is exactly what I did when I retired. I retired with 30 years at age 49, and my Aetna continued until age 65. You might want to check with Medicare if you have not retired. Also, Medicare Part A is an automatic enrollment and Part B is your option to accept or decline. Been there, and also have helped several seniors before me with their enrollment. I was not commenting on the UPS/IBT and Central States Pension. That has no effect on Medicare unless, as in some locals Teamcare does continue after age 65, then Medicare can become the secondary or primary insurance and Teamcare can be secondary or primary depending on the local supplement. I typed this slowly this time for you.
     
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  10. old levi's

    old levi's I use to care... but things have changed

    give it a rest, jeez
     
  11. DELACROIX

    DELACROIX In the Spirit of Honore' Daumier

    Most of what you stated is true except the for the equally split. The monetary benefits that you will be getting from the separate plans will depend on how many years you have vested in them. For example (at age 65) if you have 20 years in the Central States plan and 15 years under the IBT plan and obtained the service time for a 3500 a month benefit, those service years in the Central States plan offset the amount of money that the IBT/UPS plans has to pay, so Central States has to pay 2,000 and the IBT/UPS plans 1,500. It is to UPS's advantage to prolong the retirement age pass age 65 because of the Central States offset, they are essentially only paying for the early retirement benefits. They have done everything within their power to prevent the paying more for their Union retirees in the past I expect more of the same if the Feds have to bail out or declare bankruptcy with the Central..(17 Billion dollars in the red currently).

    That reduction language can be changed through negotiations with future contracts. Nothing is certain even if you decide to retire, they still can change your medical benefits annually if they want. What happens in another 5 years if the company decides it does not want to honor their obligation to cover any of the Central States UPS retirees especially with the Central going under. Once you retire you have no say so or vote to protect your rights on this, it will up to the active employees to vote to protect those provisions. With the attitude present now do you really seriously think they will care about retirees, just look at the 2013 one to get your answer.

    It has been now over 10 years since the UPS membership left the Central States fund, in another 5, 10 or 20 years will anybody have any real vested time in that failing plan all their time will be under the IBT/UPS one, It will not concern them if the plan becomes insolvent and reduces their benefits by a third..think about it before anybody takes the plunge into retirement and plan for the unexpected.

    Medicare kicks in at 65 when you retire, you can work past 65 and still be covered under your company's plan. No supplement coverage at retirement negotiated with the Union retirees, I believe there is some for management retirees. Yet another negotiated item left out of the equation.
     
  12. Oldtimer

    Oldtimer New Member

    Well said, Delacroix
     
  13. old levi's

    old levi's I use to care... but things have changed


    I should have said pre-enroll, but then you would have missed out on your all-knowing rant.
     
  14. DELACROIX

    DELACROIX In the Spirit of Honore' Daumier

    You are right, I got to learn the art of keeping it short and simple. Sometimes I just can not help myself. :cursing:
     
  15. ski or die

    ski or die Ski or Die

    Sorry if I hurt your feelings. But as a retired steward, I have always tried to help my fellow employees before and after retirement to help keep them informed of their rights. We all know how hard it is to get a straight answer from management, and have them deny saying it later. Retirement is something you cannot do over after leaving company so it is very important to make sure you have all your ducks lined up properly before you leave.
     
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  16. old levi's

    old levi's I use to care... but things have changed


    Don't worry about my ducks, they are lined up nut to but with all their shoulders just touching a mason's line.
     
  17. john chesney

    john chesney Well-Known Member

    Can you tell me where you got that information? I know I’ve heard about it but I don’t see it in the contract. It looks like it actually says the opposite
     
  18. satellitedriver

    satellitedriver Moderator

    Last time I saw that was in a porn flick and someone was bent over and getting ……. Just like you will be with your attitude.
     
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  19. cars27

    cars27 New Member

    UPS negotiated with central states to place employees working after 1/1/2008 in the new retirement plan for which UPS paid CS 6 billion. This was done independent of the contract in effect at the time. Under this agreement this should not be a contractual issue as was not negotiated as part of contract agreement that was in effect on 1/01/08. New contract wasn't agreed on until August 08.
     
  20. 35years

    35years Well-Known Member

    You are incorrect.
    The agreement for UPS to exit CS was negotiated in late 2007 as part of the terms of the new contract.
    Link... Teamsters and U.P.S. Reach Deal on Pensions

    The prior contract was due to expire until 2008 (July 31), but because of pending rule changes for multi-employer pensions about to take effect in January of 2008, the two sides negotiated a contract settlement that included the terms of the CS exit early, and had it ratified on December 19, 2007.
    Link... UPS Contract with Teamsters Ratified

    The contractual agreement allowed UPS to withdraw from CS (with the 6-8 Billion legally mandated already accrued liability; not a penalty). In return, UPS agreed to offset any reduction in pension benefits UPS retirees might face in the future as a result of CS reducing benefits because of insolvency.

    In other words the 6-8 billion UPS paid at withdraw was the amount it already owed future UPS retirees, and the payment would be mandated by law of any company wishing to withdraw from a fund. The Teamsters only agreed to allow UPS to withdraw if UPS agreed (by contract) that if CS later became insolvent and reduced benefits, UPS employees (not all CS retirees) would not have their pension benefit cut, and UPS would foot that bill.
     
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