UPDATED March 19, 2012
The New UPS Pension Plan
The accrual rises to just $170 by the end of the contract in 2013.
- Pays the lowest pension benefits of any fund covering UPS Teamsters.
- Covers 44,000 UPS Teamsters in the Carolinas and Central and Southern Regions—the single largest group of UPS Teamsters covered by any plan.
Western Conference (covers 11 Western States)
Approximately $4,000 per month for a UPS employee with 30 years, at any age. The accrual is approximately $203 for this year.
Baseline early retirement: $2,500 for 25-at-57. $3,500 for 30 and out at 57. $150 for each additional year pension credit up to $4,700 for 38 years of credit. But annual accrual has risen to the point that UPS Teamsters can retire at 30 years with approximately $4,000 per month. If you wait until 62 to retire, you get an extra $1,000 per month between the ages of 62 and 66, when full social security starts.
Washington, D.C. (Local 639)
Approximately $6,000 per month for a UPS employee with 30 years, at any age. The accrual is approximately $306 this year.
New York State
Approximately $5,700 for 30-at-age-55. 2 percent penalty per year for retirement before the age 55, if you had at least 25 years prior to 2011. Larger reduction for those with less than 25 years prior to 2011.
Virginia (Joint Council 83)
$2,500 for 25-and-out.
$3,500 for 30-and-out.
$4,000 for 35-and-out.
However, Teamsters with less than 20 years at the end of 2009 have reductions for early retirement (before age 65)
West Virginia (Locals 175 and 505)
$3,000 for 30-and-out.
$4,250 for 35-and-out.
A UPS Teamster with 30 years at the end of 2012 can retire with a pension of a minimum of $3,900. (30-and-out and 25-and-out have been eliminated). Benefits have been restricted by reducing the multiplier to 1 percent, freezing contributions rates for the purpose of pension calculations at the 2004 level and imposing stiff penalties for early retirement. Going forward, pension levels will be lesser unless these restrictions
are rolled back.
New Jersey (Local 177)
$3,700 for 25 at age 55.
$3,700 for 30-and-out at any age.
New York City (Local 804)
$3,100 for 25-and-out at any age.
$3,600 for 25 at age 55, or 30-and-out at any age.
Chicago Area (Local 705)
$2,500 for 25-and-out, with lump sum of $25,000; $3,000 for 30-and-out, with $30,000 lump sum; $3,500 for 35-and-out, with $35,000 lump sum. Option to reject lump sum and add $8 per year of service to pension (e.g. $3,240 for 30-and-out).
Illinois and Indiana (Local 710 Plan)
$2,800 for 25-and-out, $3,300 for 30-and-out, $3,800 for 35-and-out.
A UPS employee with 28 years at age 60 can retire with approximately $5,000. (Prior to 2003, there was a different "Retirement Income Plan" in effect, so pension calculations vary by years of service and age). The accrual is $140 this year.
$3,500 for 30-and-out. However, the annual accrual is presently nearly $300, and Teamsters can retire with approximately $4,000 presently. The accrual may well be reduced in the near future.
St. Louis and Missouri (Local 688)
$2,600 for 25-at-57; $3,100 for 30-and-out, $3,200 for 30-at-57; $100 extra for each of age beyond 61 and also for each year of service (e.g. $4,000 for 35-at-64).
Baltimore (Local 355)
More than $4,000 for 30 years at age 55 or more. However, the accrual rate was cut from $191 in 2007 to zero in 2008, then restored to the low level of $62 in 2009 and $74 in with small increases since then. Benefits will decrease unless and until a good accrual rate is restored.
Hagerstown, Maryland (Local 992)
$3,000 for 25-at-57.
$3,600 for 30-and-out.
$4,200 for 35-and-out.
Wisconsin (Local 344)
30-and-out at any age is $3,030. 35-and-out is $3,535.
Teamsters in the top benefit class with 30 years can retire with $3,300 at age 62, and approximately $3,000 at age 57. The accrual is presently approximately $180 per year.
NOTE: This snapshot summary of information on various pension plans is intended for general comparison purposes. We have attempted to the extent possible to list comparable benefits (e.g. 30-and-out). This short summary cannot provide full information on the range of benefits available in the various plans.