Does UPS still have a pension plan?

Question

Zippia Team · Accepted Answer

By 2023, UPS will no longer fund its pension plan for non-union employees. Those who are currently enrolled in the plan will still receive benefits (especially if they're part of a union), but new UPS employees will no longer have access to pension plans.

Instead, UPS will focus its attention on offering 401(k) plans to employees in order to reduce the financial burden of the company's pension deficit.

In other words, UPS is not doing away with retirement benefits. Instead, the focus will shift toward providing employees with 401(k) plans that offer employees the opportunity to contribute a portion of their wages, pre-tax, into a retirement account. The company may also match a percentage of these contributions, further enhancing the potential for retirement savings.

Importantly, existing pension plan members will still receive their benefits, while the new 401(k) plans will be put in place to ensure new UPS employees still have options for their retirement savings.