* Unless you make more than $2XX,XXX in a year and that 12 percent becomes less. We don't have cash over cap. I forgot the exact amount.

 

Retiring that early would put your pension the 1 percent FAE - drastically reducing your pension amount. This something I didn't fully understand before getting hired here.


"Defined Benefit Pension "A Plan": 1% FAE or Flat Dollar Amount (1% FAE is the contractual standard, but practically everybody who retires gets the substantially higher Flat Dollar Amount which is renegotiated every contract due to ERISA law)"

 

We get 12% up to the 401(a)(17) Defined Contribution Compensation Limit, which is $350,000 for 2025.

Yes I absoultely want CoC too, but my point was our retirement does not begin and end with a defined benefit the way passenger carrier retirements did in the 9/11 era.

 

https://www.irs.gov/retirement-plans...future%20years.

Is it that high?

 

Yes, it is that high.

What you linked to is max defined benefit, not max defined contribution compensation limit.

"2025 Deferral Limits" or "After Tax Checklist" on the Retirement Committee page on the IPA website has more info...

 

So theoretically, we could negotiate the flat dollar benefit multiplier all the way up to $9166.67. Obviously, the company might not be too interested in cash over cap or industry standard pay rates in addition, but hope does spring eternal.

 

Thank you

Filler

 

Ok, I understood it would be reduced by something like 1/4-1/3. Vastly starts to imply closer to 50% or less. Do you have more concrete ballpark guesstimates?

We are in a really unstable time period, WWW3 lurking, technology advancing exponentially, everything’s constantly changing. To me, UPS’s endpoint is not an if, it’s a when issue, certainly possible within our lifetime.

 

It'd be a fraction of face value, but I could only speculate as to what the PBGC percentage would be.

 

from https://www.pbgc.gov/wr/benefits/gua...imum-guarantee

The below table is the most you could get if the pension fund went belly up and UPS was no longer on the hook to make it whole. There are plenty of caveats in this process. So do your own due diligence! Remember, it’s not what you could have earned, it’s what you already had vested when the PBGC steps in. In my case, as a recent captain upgrade years away from hitting flat dollar eligibility, it’s just 1% FAE times years of service, not the current flat dollar multiplier. That’s a not insignificant risk, but our fund is fairly well funded and rising interest on Treasuries will help our fund grow faster since it’s required to own a lot of them.



Age Straight-Life Annuity Joint and 50% Survivor Annuity 1
75 $22,592.73 $20,333.46
74 $20,541.55 $18,487.40
73 $18,490.37 $16,641.33
72 $16,439.19 $14,795.27
71 $14,388.00 $12,949.20
70 $12,336.82 $11,103.14
69 $11,073.41 $9,966.07
68 $9,958.64 $8,962.78
67 $8,992.50 $8,093.25
66 $8,175.00 $7,357.50
65 $7,431.82 $6,688.64
64 $6,911.59 $6,220.43
63 $6,391.37 $5,752.23
62 $5,871.14 $5,284.03
61 $5,350.91 $4,815.82
60 $4,830.68 $4,347.61
59 $4,533.41 $4,080.07
58 $4,236.14 $3,812.53
57 $3,938.86 $3,544.97
56 $3,641.59 $3,277.43
55 $3,344.32 $3,009.89
54 $3,195.68 $2,876.11
53 $3,047.05 $2,742.35
52 $2,898.41 $2,608.57
51 $2,749.77 $2,474.79
50 $2,601.14 $2,341.03
49 $2,452.50 $2,207.25
48 $2,303.86 $2,073.47
47 $2,155.23 $1,939.71
46 $2,006.59 $1,805.93
45 $1,857.96 $1,672.16