Benefits August 28, 2012
UPS to Move to New Pension
August 28, 2012 (PLANSPONSOR.com) - In a deal with the New England Teamsters and Trucking Industry Pension Fund, United Parcel Service (UPS) will move its employees to a new pension plan.
Reported by PLANSPONSOR staff
The new plan ensures no diminution in pension benefits and the company will not be required to increase its cash contribution for the next 10 years, according to news reports.
The company expected to incur a one-time charge of $896 million in the third quarter to transfer its 10,200 employees to the new plan. The charge represents the value of the company’s $2.1 billion liability for withdrawing from the old plan, which it expects to repay in the next 50 years.