January 10, 2008: The changes in the cost of retiree health care associated with the tentative contract for freight Teamsters in the Central States Health & Welfare Fund are different from those at UPS, even though the benefit money is identical for both groups.
UPS retirees will pay $200 per month ($400 for a couple) if they retire at 55 or older. The freight schedule proposed is as follows:
Under age 60: Continue with present high (and increasing) rates
Retire age 60: $200 per mo/$400 couple; will increase $25 per year
Retire age 61: $150/$300; will increase $25 per year
Retire age 62: $100/$200
Retire age 63: $100/$200; you get 2 years of free medi-gap coverage when reach 65
Retire age 64: $100/$200; you get 4 years of free medi-gap coverage when reach 65
Retire age 65: You get 6 years of free medi-gap coverage
The later you retire, the sweeter the deal. Central States Fund policies have already pushed the average retirement age from 59.5 to 61.5 in just five years. Their goal is to keep pushing it higher.