UPS Money Retirement Calculator
Hi there,
I'm trying figure out how one calculates the UPS Money Retirement figures. The A Fund (Defined Contribution) is 1% but I'm not sure how this equates to a $$$ amount once one retires. Can someone explain how it works in simple terms. Thanks. |
in simple terms, for every year of service you accrue 1% up to a maximum of 30% (30 years of service).
When you retire your pension income is whatever percent you attained times your final average earnings. I'd have to look up the specifics of that, but I think its your average of the last 5 years. so for a 20 year career, you'd receive 20% of your FAE. Having said all that, it's different if you are retiring right now, there is a set dollar amount option that could yield more than the percent calculation and they take their retirement that way. But if you are hired today you would plan on using the percent method. |
Another question would be 1% of what number? Remember the government restricts the amount of income used in making these determinations. This is one of the reasons UPS and FedEx use a flat dollar chart.
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Originally Posted by package puppy
(Post 1730881)
Another question would be 1% of what number? Remember the government restricts the amount of income used in making these determinations. This is one of the reasons UPS and FedEx use a flat dollar chart.
|
So let me get this right, if you work at UPS for 25 years (if you are hired right now), the max your retirement check can be is $65,250? That is, if I got my math right. So what is the amount for people who are already hired and under the old system?
A 12% B fund is pretty good, though. |
Originally Posted by 31wins
(Post 1730838)
in simple terms, for every year of service you accrue 1% up to a maximum of 30% (30 years of service).
When you retire your pension income is whatever percent you attained times your final average earnings. I'd have to look up the specifics of that, but I think its your average of the last 5 years. so for a 20 year career, you'd receive 20% of your FAE. Having said all that, it's different if you are retiring right now, there is a set dollar amount option that could yield more than the percent calculation and they take their retirement that way. But if you are hired today you would plan on using the percent method. This is the benefit if you get a Captains seat at anytime for any duration during your career at UPS . 1% would be approx. 2600 per year of service up to 30 years of service giving 78k per year in retirement benefit with the same potential for reductions due to choices made at retirement. Current negotiations intend to increase both flat dollar benefit and percentage to what FDX gets . 5K per year of service or 2%. If you are hired today plan on and only vote for an A plan with a flat dollar benefit in addition to the percentage |
Originally Posted by busdriver12
(Post 1731006)
So let me get this right, if you work at UPS for 25 years (if you are hired right now), the max your retirement check can be is $65,250? That is, if I got my math right. So what is the amount for people who are already hired and under the old system?
A 12% B fund is pretty good, though. Also UPS will contribute 12% of base pay at a max of $260,000. or the IRS for 2014 whichever is lower This is a max total of $31,200 in your B fund. So it is not really 12% of your total pay. It is a lessor amount. |
Originally Posted by busdriver12
(Post 1731006)
So let me get this right, if you work at UPS for 25 years (if you are hired right now), the max your retirement check can be is $65,250? That is, if I got my math right. So what is the amount for people who are already hired and under the old system?
A 12% B fund is pretty good, though. |
Thanks for the info guys.
Def makes more sense now. To put in 30 years one would have to work close to age 65, assuming you get hired in your mid 30's. Which as a cargo pilot is tough to do considering all the night flying, international flying, etc. For those guys on sight, are most of the browns working right up to the mandatory retirement age of 65 or are most planning a bit earlier? What are the guys approaching age 60 saying about retirement? Are most staying on for a few more years? I'm a ways off from that but I'll be darned if I'm working right up till 65. I'd say 60-62 is my cutoff. I at least want to get a few rounds of golf in before heading to my grave. lol Just curious what the consensus is... |
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