Retiree Healthcare

Retirees to be hit with higher premiums

Under the tentative agreement, UPS Teamsters will no longer get retiree healthcare coverage through a company plan, beginning Jan. 1, 2014. 

Teamsters who are currently covered by a union plan will continue to get retiree healthcare coverage through that plan. This applies to full-time Teamsters in New England, the South, Washington, Oregon, and various other areas and locals.

This will result in higher premiums and reduced coverage for thousands of present and future retirees.

Affected Teamster Locals in the West and in New Jersey Local 177 have until November 1, 2013 to come up with an alternative plan for those members, per a Memorandum of Understanding, or they will be moved to Central States.

Retiree Premiums

A Memorandum of Understanding states that Teamsters currently under the company plan will pay the following monthly premiums for retiree coverage:

Effective 1/1/2014      $50 individual                $100 to include spouse

Effective 1/1/2015      $100 individual             $200 with spouse per month

Effective 1/1/2016      $150 individual             $300 with spouse

Presently the rate is $50

These increases would take effect for all retirees regardless of the date of their retirement.

Family Coverage?

The Central States Plan currently does not offer family coverage to retirees. The Memorandum of Understanding is silent on this. It states only an individual rate and retiree-plus. Under the current Central States plan, retiree-plus covers only spouses and not children.

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So I lost $400 a month from my pension now I'm going to have to pay more for health care. Not only that, my daughter will no longer be covered? 37 years of 55hours a  week and the Teamsters and UPS are stealing from us. Shame on you Ken Hall and all your cronies. How is your pension and health care?  do you people sleep at night?

     Every worker, that has the opportunity to vote on this contract, should vote NO!

    All workers work for 25, 30, 35 years or more with the understanding that from the day they retire until the day they die their pension will NEVER go up. There are NO cost of living increases. It is permanently frozen the day you retire. Their healthcare costs should be frozen too!

     It is a simple fact of life that as you get older you need more and more healthcare. I worked at UPS for 32 years and I didn't need glasses until 3 years after I retired. When I bought them I had to pay 100% of the cost for the glasses and the office visit. Why? Because retirees get NO vision coverage. We also get No dental coverage. We also have to pay for drug presciptions and then file paperwork to hopefully be reimbursed. And now, under this contract proposal, the costs for this crappy coverage is going up for a retiree and a spouse from $50 to $300 over the next 18 months.This amounts to a 500% increase. Every worker should remember that one day they will be a retiree too...Retirees do not get to vote, even though every contract affects them. 

     Every worker, that has the opportunity to vote on this contact, should  vote NO!

 You guys have to be kidding me about the cost for retirees. And the coverage is less. Are you nuts? How could you agree to this? UPS made record profits and you accept this from them. UPS is trying to break the union and this crap is going to help them. I worked 37 years for a good retirement and you guys piss it away and i dont get to vote. I am so upset to even think about how bad this is going to be for all of us. UPS has deep pockets lets get our hands in them. VOTE NO to this bullshit contract. I am going to tell everyone i know and everyone who will listen to vote NO. You guys just sold us down the river. WE built this union and who are you to not even ask us retirees what we think.           From retired local 705 teamster Ken Margalski

In addition to the increase in retiree monthly premiums, the language states current retirees will be moved to an 80/20 plan. It is foreseeable this will be an even higher increase than what UPS proposed. One hospital procedure of $30,000 will now cost the retiree $6000 (20%) plus $3600 (12 months premiums) for a total annual cost of $9600. A more realistic hospital stay would be $100,000 at a cost of $20,000.  Retirees who must live on a fixed monthly amount should not be subject to health benefit changes. Health benefits should remain constant.

I recently retired from UPS after 32 years of service. I pay $200.00 per month for healthcare and $200.00 per month for my wife. You state that I should be paying $50.00 individual and $100.00 to include spouse. You also state that this is an increase. Could you please explain? Thank you, Matthew 

There is a company plan that 40% of the Teamsters are in that when they retire they pay $50.00 a month & then there is the Teamsters insurance plan that retirees pay more and get less coverage . What the Teamsters failed to tell the 60% of the people in the Teamsters healthcare is that UPS wanted all of us or none .

I agree with the fellas above.  I did retire with the additional coverages they do not get.  The ONE BIG PROBLEM for ALL RETIREES is:



That means you have a second ANNUAL DEDUCTIBLE (over and above Medicares).

That means they scale down your coverage to a STANDARD MEDICAL COVERAGE.

That means they only pay 20% OF WHAT MEDICARE 20% BALANCE does not pay.  


THEIR COVERAGE IS VERY MINIMAL AND SELECTIVE ON THE WEST COAST!  How can they even think about raising premiums when this type of coverage is hacked to death.  LESS coverage should mean less premiums!  Our retirement pay does not go up.  Obama Care had NOTHING TO DO WITH THIS ONE... IT IS PURE GREED BY UPS.


Why are the teamsters not standing up for the retirees. I have been in local 631 for 21 yrs. We dont have any say in this decision? When I retired I thought we stayed under that contract, not that we could be sold down the river, we are not getting a raise just more taken out of our check.

If you are over age 65, Medicare has become primary, and the healthcare plan from UPS has become secondary to Medicare. Why should we be paying for PRIMARY coverage from UPS? As a secondary plan, it only pays 20% of the allowable -- AFTER Medicare pays its portion -- and secondary coverage only kicks in IF Medicare pays SOMETHING. If Medicare pays nothing -- the secondary coverage does not pay anything either. Why?

I can't believe that the annual limit for retiree coverage is $200,000 per year !!!!!!  My wife has cancer.  I will never never never be able to retire.  Why is UPS doing this to us??  VOTE NO !!!

I was told that if one is retired at age 65 when medicare kicks in the UPS insurance ENDS--not becomes secondary. What is it--secondary or done with? ends. I feel for some of you that are stuck in the Central States Plan, especially if you are retired. I'm still in the Teamster run retirement plan and my local 177 is holding out on their supplement until Nov. 1st so that they can find another plan. If not, we'll be thrown to the wolves in the Central States Plan. My premiums now are $50 a month; 90% doctor visits; 100% hospitalization; 90% dental; only my vision plan sucks now. Free scripts if mail order and three month supply; $5.00 co-pay if obtained through ANY pharmacy if it's a name brand drug only. One day everyone will be without a vote when you retire. If you're reading this and you are an active employee, I urge you to vote NO and think about all the hard work WE retiree's did to put UPS on the map of success. My back is still aching every damn day!

I am only thirty and a long way from retirement but I AM going to do what I hope someone will someday do for me, and protect our retirees when they have no voice.  You blazed a trail for us and I will not allow you to be penalized for retiring...VOTE NO!

This discussion over the retirees' healthcare increase is precisely why we would want to negotiate a vested right contract clause. This would mean in future years they cannot send us a letter stating our healthcare will be increased or changed in any manner (exception to plan carrier). Why aren't the Teamsters requesting this language?

the annual limit is the biggest disappointment in my insurance followed by no dental and eyecare. I pay $200 a month plus $190 a month for a major medical plan to pick up where my pitiful central states plan quits. That's just not right. Will this be corrected by healthcare reform or will I be grandfathered to the poorhouse if I get really sick?