With Contract Extension 2 there will be a 4% raise in 09/23. Thank you EB

Included was an “A” plan bump of 4.7%. Now the “flat dollar amount” a 60 year old + crew member will receive is (Years of Service) X $4400. Up from $4200/ Year of Service. A 25 years of service crew member will receive $110.000/year at full retirement date of age 60. It would be great if we, in the next contract could receive full vesting at 25 years like some of our cargo brothers and sisters get but our rates don’t top out till 30 years. A retiring crewmember with 30 years of service will receive in retirement after 30 or 30+ years of service $4400XYears of Service =$132,00/Year. Thank you EB.

Thank you EB for locking in gains while the Teamsters who represent the majority of UPS workers settle their contract late this summer. I think sometimes some of my coworkers put the cart ahead of the horse. The teamsters and their contract

I know there are peers of mine that say we should of “forced” UPS to make our schedules great and conceded us pay rates from contracts at other airlines that will have TA’s months/years in the future. I trust my EB.

To answer your question the timeline on negotiations with the TA(2) is negotiation starting 09/24. This is from the IPA Negotiations Timeline Slides

Crewmembers will receive a 3.25% raise additionally in 09/24 and 09/25. The 15 year Top Captan pay will be $367 in 09/23, $388 in 09/24 and $401 in 09/25.

 

Vesting after 1 year. Say you only work 5 years, assuming you reach age 60, your pension will be $4,400 (FDA) x 5 = $22,000/year, assuming single life.

 

This assumes you work at least one revenue flight as a captain before retirement. Otherwise it’s 1.1% (didn’t look up percentage) FAE times years of service.

The pension is a great benefit, but it’s starting to lag inflation a bit. Hopefully we get that fixed.

 

tnk is right. To earn the Captain pension one must fly the revenue flight that is usually your “Release to the Line”.

The First Officer pension has the same vesting rules. In the TA extension the “A” plan flat dollar amount is multiplied by years of service. 1 through 30, when it is maxed out.

In the TA extension (2) those First Officer flat-dollar amounts were also increased to this amount multiplied by years of service:

January 2024-Captain $4525 Multiplied by YOS
First Officers $3620 X’s YOS

January 2025- Captain $4650 X’s YOS
First Officers $3720 X’s YOS.

If a crew member for whatever reason retires as a First Officer and retirees at or beyond the full-retirement age of 60 they are eligible for the flat-dollar “A” plan retirement.

Inflation concerns are all valid in my opinion but I am thankful that this leg of my retirement along with my 401k, Roth 401k, “B” Plan retirement fund (12% of earnings up to IRS limits)…full disclosure we do not get “cash over cap…

…are all there to fund my retirement. Thank you EB.

 

UPS has three retirement plans:

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)
Defined Contribution "B Plan": Money Purchase Plan (MPP) of 12% Company contribution up to IRS 401a17 compensation limit, no "cash over cap"
401K - different pot of money than Company-funded MPP, 100% employee funded, no company match

 

Thank you!

 

just curious, what about ERISA law requires the flat dollar amount be renegotiated? (Instead of just a formula like 12 x top hourly rate)

 

It’s an accounting exercise to minimize pension liabilities that show up on the company’s books.

 

That’s exactly it. Nothing to do with affordability. By using the 1% FAE instead of the FDA for a large % of the pilot workforce they reduce their liability for the books and makes the IPA have to spend some negotiating capital to capture more people for the FDA at a later date.

 

thanks

filler