Commando

Wonder why UPS is waiting until 2023 to implement the Freeze? Just coincidence? This is the exact year when our CBA Flat dollar option expires also. UPS appears to be thinking ahead and this will give them ammo to freeze ours. And if one was born after 1963 under the present CBA, it's a 30K per year hit to one's annuity after 2023.

brownie

Bingo...I've been saying that for the last 3 days. WE ARE NEXT and I don't care how funded we are .

nightrider

We aren't next, we would have to agree to it or they would have to declare bankruptcy, ruining a brand worth 100's of billions over 100 million in benefits isn't feasible, everyone's said we would lose the flat dollar amount in this agreement, it was increased. We will be fine, the pilot group and our costs are nothing but a pimple on the ass of an elephant.

Commando

My point also is we may not be next and have it frozen, but good luck not having it revert back to the 1%. The tea leaves are saying that everyone on property born after 1963 and still on property in 2023 just got royally hosed, most likely. Since after 2023 the Flat dollar goes back to the 1% and UPS will stick it to us. Hopefully now we do NOT have a new CBA by Dec. 31, 2023. After this date the Flat Dollar continues I believe.

I see an A-plan buy out in our future.

Night_Hawk

The retirement rep said a buy out would never happen because it would be an IRS / tax nightmare. Impossible to figure out.

Swedish Blender

Somewhere at UPS, there is an actuary figuring A-plan payments versus life expectancy. I suspect it is far cheaper to pay a few years A-plan or the reduced survivor amount than paying a lump sum.

Also, with no A-plan/no 401k match, why would anyone work here instead of DAL,AA,UAL,FX?

SaltyDog

We all wish that, but untenable because of the government regulations rules cost requirements. The costs for this wish is in the billions. We are an old group and pension costs, like insurance, are very expensive for older folks.
The IPA used same approach used since inception of the A Plan. 2016 CBA carried this increased DBP flat plan forward. It is only because more people are closing in on retirement age that it was noticed in 2016, but almost virtually ignored in 2006 (same strategy and actually improved language in 2016)
As the pilot demographics age, fail to believe a future TA would ratify without this continuing trend in flat dollar improvements.
Cheers

WhenPigsFLy

Crewmembers are eligible for the flat dollar benefit under the 2016 TA as follows:
1. The flat dollar benefit is guaranteed for crewmembers who will reach age 60 before
December 31, 2023 (almost 2.5 years after the amendable date).4
This is true even if a
new contract is ratified before that date which reduces or eliminates the flat dollar benefit
going forward.
2. If a new contract has not been ratified as of December 31, 2023, the guarantee period will
be extended by 3 years to cover crewmembers who will reach age 60 before December
31, 2026 (almost 5.5 years after the amendable date).
3. If a new contract has still not been ratified as of December 31, 2026 (almost 5.5 years
after the amendable date), crewmembers will still get the flat dollar benefit if they reach
age 60 before the next contract is ratified.

WhenPigsFLy

The above is strait from contract/M&I/LOA. Alot of the info on here are by folks that dont bother to read/research the contract. These folks cause alot of bad info to be passed.

PastV1by10

Wonder why union leadership is silent on this? Nevermind, going to get assulted for asking the question by the same guys on the Bar and Grill. Almost 13 years and nothing has changed.