Questions and Answers for UPS Employees in Central States Pension Fund

Q1: Why did UPS and the International Brotherhood of Teamsters (IBT) agree to withdraw UPS employees from the Central States, Southeast and Southwest Areas Pension Fund (CSPF) and set up a plan for UPS employees only?

Q2: Who is eligible to participate in the new UPS/IBT Plan?

Q3: Does the UPS/IBT Plan cover part-time employees?

Q4: When did the UPS/IBT Plan become effective?

Q5: Does the UPS/IBT Plan offer survivor or death benefits?

Q6: Does the UPS/IBT Plan offer disability benefits?

Q7: What happens if I work for UPS for 20 years but only have three years in the UPS/IBT Plan? In this case, will I be entitled to a benefit from the UPS/IBT Plan?

Q8: Will my benefit be reduced when I become eligible for Social Security?

Q9: How is the new UPS/IBT Plan be managed?

Q10: If I worked for five years as a UPS part-timer covered by the UPS Pension Plan and another 25 years as a UPS driver, how would the pension be paid from the UPS/IBT Plan?

Q11: If I participated in the UPS Pension Plan as a part-time employee, then went into the CSPF as a full-time employee and now participate in the UPS/IBT Plan, would I get separate checks when I retire?

Q12: Why would I receive more than one pension check?

Q13: In the UPS/IBT Plan, what are the re-employment restrictions if I decide to work somewhere else after retirement?

Q14: The CSPF has an optional form of benefit payment called the Joint and Survivor benefit. Is that option available in the UPS/IBT Plan?

Q15: Can I get a different form of benefit payment from the UPS/IBT Plan than the CSPF?

Q16: How many hours do I need to get one full year of credit in the new Plan?

Q17: If the CSPF reduced the benefit I am receiving, would UPS make up the difference in my retirement benefit?

Q18: How can I get more information?



Q1: Why did UPS and the International Brotherhood of Teamsters (IBT) agree to withdraw UPS employees from the Central States, Southeast and Southwest Areas Pension Fund (CSPF) and set up a plan for UPS employees only?
A: After reviewing many options, UPS and the IBT concluded that setting up a new Plan for full-time Teamster-represented UPS employees who are participating in the CSPF was the best option for UPSers.

The new UPS/IBT Full-Time Employee Pension Plan (later referred to as the "UPS/IBT Plan" or the "Plan") immediately restored retirement benefits to levels that were available to participants before the CSPF modified benefits in 2003. A main feature of the UPS/IBT Plan is that it restored the Service Pension which allows an employee to retire with defined years of service at a guaranteed benefit level, such as the 20-, 25- and 30-Year Service Pensions (also known as the 20-and-out, 25-and-out and 30-and-out pensions). This means that employees may begin to receive unreduced benefits at an earlier age. Additionally, the UPS/IBT Plan offers opportunities to retire with greater benefits in the future under a Normal Retirement situation.

Doing nothing was not an option. So UPS put forth a proposal, agreed to by the IBT, that benefits UPS people previously covered by the CSPF and still allows UPS to remain competitive. Even though many employers are no longer offering pensions, this Plan greatly improves pensions for UPS people.
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Q2: Who is eligible to participate in the new UPS/IBT Plan?
A: Current, full-time UPSers, who are covered by a collective bargaining agreement(CBA) between UPS and the IBT that provides for participation under this Plan and who participate, or would become eligible to participate, in the CSPF as of December 26, 2007, will immediately participate in the new Plan on January 1, 2008.
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Q3: Does the UPS/IBT Plan cover part-time employees?
A: No. Part-time employees are eligible for a separate plan, the UPS Pension Plan. However, part-time employees who take full-time job opportunities in Covered Employment may become participants in the new Plan.
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Q4: When did the UPS/IBT Plan become effective?
A: The UPS/IBT Plan became effective on January 1, 2008.
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Q5: Does the UPS/IBT Plan offer survivor or death benefits?
A: Yes. The Plan provides death benefits if you die after becoming vested but before you retire from UPS. If you die after your benefit payments start, your spouse may continue to receive payments depending on the form of payment that you elect.
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Q6: Does the UPS/IBT Plan offer disability benefits?
A: Yes. Disability benefits, similar to those under the CSPF, are available from the UPS/IBT Plan benefits.
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Q7: What happens if I work for UPS for 20 years but only have three years in the UPS/IBT Plan? In this case, will I be entitled to a benefit from the UPS/IBT Plan?
A: All past service with the CSPF or as a UPSer will count toward vesting in the UPS/IBT Plan. You will be entitled to a benefit from the new Plan.
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Q8: Will my benefit be reduced when I become eligible for Social Security?
A: No. There is no offset or reduction for any Social Security retirement income you may receive.
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Q9 How is the new UPS/IBT Plan be managed?
A: The UPS/IBT Plan is a jointly trusteed plan that has equal representation from both UPS and the IBT. The trustees are responsible for management of the UPS/IBT Plan.
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Q10: If I worked for five years as a UPS part-timer covered by the UPS Pension Plan and another 25 years as a UPS driver, how would the pension be paid from the UPS/IBT Plan?
A: Since you have combined service of 30 years, you will qualify for a 30-Year Partial Service Pension from both the UPS Pension Plan and the UPS/IBT Plan. The UPS Pension Plan will pay you 5/30 of its 30-Year Service Pension that was applicable at the time you left that plan, and the new Plan will pay you 25/30 of its Service Pension.
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Q11: If I participated in the UPS Pension Plan as a part-time employee, then went into the CSPF as a full-time employee and now participate in the UPS/IBT Plan, would I get separate checks when I retire?
A: If you are entitled to a benefit from any of the plans, each respective plan will pay you separately -- either by check or direct deposit. The CSPF benefit will begin at your Normal Retirement Date (typically, age 65).
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Q12: Why would I receive more than one pension check?
A: The UPS/IBT Plan pays your entire benefit prior to your Normal Retirement Date. At your Normal Retirement Date, you will receive your benefit from a combination of the UPS/IBT Plan and the CSPF.
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Q13: In the UPS/IBT Plan, what are the re-employment restrictions if I decide to work somewhere else after retirement?
A: The UPS/IBT Plan has no such restriction and will only exclude you from receiving a benefit payment if you return to work for UPS or one of its Related Companies.
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Q14: The CSPF has an optional form of benefit payment called the Joint and Survivor benefit. Is that option available in the UPS/IBT Plan?
A: Yes. The UPS/IBT Plan provides the same Joint and Survivor payment option as the CSPF.
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Q15: Can I get a different form of benefit payment from the UPS/IBT Plan than the CSPF?
A: No. The form of benefit payment you select from the UPS/IBT Plan will be the same form of benefit you will receive from the CSPF.
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Q16: How many hours do I need to get one full year of credit in the new Plan?
A: You will need to work 1,801 Hours of Service in Covered Employment to receive one full year of credit under the UPS/IBT Plan. If you work less than 1,801 hours in a calendar year, you will receive pro-rata Service Credit. Hours of Service include each hour for which you are paid, or entitled to be paid, for the performance of your job duties with UPS. It also includes hours for which you are paid, or entitled to be paid, for vacations and holidays, illness, jury duty, military duty, authorized leaves of absence or workers' compensation absence (up to one year). Service Credit is used in calculating your pension benefit at your Normal Retirement Date.

Under the new UPS/IBT Plan, if you work 40 hours in a week in Covered Employment, you will earn a full year of Service Credit in 45 weeks, instead of 52 weeks required under the CSPF.

For purposes of Service Pensions only, participants earn one year of Service Credit if they work 40 weeks in a calendar year (which is the same as the CSPF).
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Q17: If the CSPF reduced the benefit I am receiving, would UPS make up the difference in my retirement benefit?
A: Yes.
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Q18: How can I get more information?
A: You can refer to the Summary Plan Description which is available on this web site or write or email the Plan's Administrative offices at:
UPS/IBT Full-Time Employee Pension Plan
55 Glenlake Parkway, NE
Atlanta, GA 30328
Email: RetirementDept@UPS.com


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The benefits described in these questions and answers are pending ratification. These benefits are only for eligible, full-time employees of United Parcel Service, Inc. (an Ohio corporation and a New York corporation later referred to as UPS) who are covered by the collective bargaining agreement between UPS and the International Brotherhood of Teamsters (IBT) that provides for participation under this Plan. These questions and answers are intended to describe the UPS/IBT Full-Time Employee Pension Plan.

The official Plan document for the UPS/IBT Full-Time Employee Pension Plan will control in the event of any differences between the Plan documents and the benefits described in these questions and answers. Although UPS and the IBT intend to maintain the Plan indefinitely, UPS and the IBT trustees reserve the right to amend or discontinue any employee benefits or plans at any time for any reason.
 
   


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