UPS Downsizing Pension Plans

Pension plans will most likely disappear in our lifetime. They can still be done, but usually people start getting their greedy hands in it and start making promises no one can pay.

United Parcel Service is downsizing their pension obligations and have been for most of 2017. Here is more from Pensions & Investments:

United Parcel Service Inc., Atlanta, will freeze two defined benefit plans — the UPS Retirement Plan and the UPS Excess Coordinating Benefit Plan — for non-union employees, effective in 2023, the company said in an 8-K filed Tuesday.

A UPS spokesman said in an emailed statement that the company is freezing the plans because of the “continued escalation of future pension obligations and the volatility in the amount of those future obligations, both of which are impacting the company’s ability to plan for future costs.”

The spokesman declined to provide information on the financial impact of the plan changes. Some 70,000 participants in the UPS Retirement Plan are expected to be affected. In the Excess Plan — a subset of the UPS Retirement Plan — a “few hundred” employees are expected to be affected, the spokesman said.

 

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