March 15, 2012: UPS Teamsters earn dramatically different pensions depending on the plan they're in.
How does your UPS pension stack up? And what does the UPS Pension Divide mean for your retirement security?
UPS Teamsters earn dramatically different pensions depending on the plan they're in—with the company-controlled UPS Pension Plan in the former Central States areas paying the lowest benefits by far.
The Pension Comparison Chart shows the range and variation of benefits for the great majority of pension plans covering UPS Teamsters.
Going into negotiations for the new contract, thousands of UPS Teamsters with 30 years of service are eligible for benefits of $5,000 or even $6,000 a month.
Teamsters in the UPS plan get just $3,000 a month—with the majority of UPSers falling somewhere in between, in the $4000 range.
The reasons for the UPS Pension Divide are complicated and there's no one answer to fixing it.
But the biggest factor is the cut-rate pension deal given to UPS in the last contract—which allowed the company to pay a substandard benefit to 45,000 UPS full-timers in the new UPS plan.
UPS is saving billions by paying lower benefits and making smaller pension contributions into the company plan. At the same time, many Teamster pension plans are starting to approach a critical turning point.
Union funds have suffered stock market losses—due to the reckless Wall Street investment schemes that blew up in 2008. And a new law, the Pension Protection Act, has forced many Teamster funds to freeze pension increases and introduce cuts that will lower pension benefits over time if we don’t take action.
Contract talks are coming up. Our union needs to make a stand against the Pension Divide, and to fight for pension improvements for UPS Teamsters.
UPS wants to lower their costs and our benefits. We need to stick together to win strong pensions with early retirement options for every UPS Teamster.
Stick Together, No Matter What Plan You're In
"We need to stick together and fight for strong, secure pensions for every UPS Teamster no matter what pension plan they're in."
Edwin Sanchez, UPS
Local 396, Los Angeles
UPS Can Afford Pension Increases
"Ken Hall got members to vote out of the Central States with the last contract because many Teamsters thought it would mean a safer pension future.
"With the new UPS-Teamster Plan, we may have a bit more security, but our pension benefit rates are pretty much stuck in neutral.
"Other Teamster funds pay significantly more. With the billions of profits UPS made over the past five years, there's no reason why we can't bargain a substantial pension contribution increase that should lead to improved benefits across the country."
Todd Hartsell, UPS Steward
Local 90, Des Moines, Iowa