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YOUR FINANCIAL FUTURE
UPS retirement benefits
As a UPS Pilot, your career offers a robust retirement package, including a 401k plan, a pension and other benefits. To help you make the most of your options, we’ve compiled key details about each. Understanding the specifics of your retirement benefits will empower you to make informed decisions and maximize your retirement savings. Connect with us to answer questions about your options and explore the trajectory of your financial future.
WHAT YOU SHOULD KNOW ABOUT YOUR UPS 401k
Your UPS 401k account can be a tremendous wealth multiplier. This account has the potential to compound your contributions and investments over the course of your career. UPS contributes a generous portion of your eligible compensation to your 401k via the Money Purchase Pension Plan. This is known as the non-elective contribution. You also have the ability to contribute your own money to the 401k plan up to the IRS maximum.
Your 401k has several key planning features you should be aware of. First, you will have the ability to indicate if you want to contribute to the pre-tax or the Roth feature of the 401k. This is helpful when managing current and future tax planning. Next, your UPS 401k supports after-tax contributions and Roth conversions. This is useful if your elective deferrals and the company’s contributions do not take you to the IRS maximum and you’d like to top off the account.
When it comes to portfolio construction the investment menu will offer broad options allowing you to tailor your investment strategy. You can select from target date funds, index funds or use the self directed brokerage account for a more hands-on and customized investment experience.
What you should know about your other UPS benefits
As a UPS Pilot you have robust benefits. According to airline analyst Kit Darby of kitdarby.com, 10% of your career value is derived from your active and retirement benefits. Each year during open enrollment you’ll have the option to select additional benefits. Medical, Dental, Life Insurance, Legal, and a few other insurance selections will need to be made during this time.
There are other benefits that you can enroll in at any time throughout the year. Your life is dynamic and your benefits shouldn’t be on autopilot year after year. Below we highlight several key company provided, union provided or contractually secured benefits.*
*The information presented is believed to be accurate. Some benefit options are subject to contract implementation. All benefits may be subject to change.
| Benefit | Details |
|---|---|
| 401k Administrator | Fidelity |
| Money Purchase Plan | 12% |
| Pension | Yes |
| Life Insurance | $100,000* Company-provided |
| AD&D Insurance | $100,000* Company-provided |
| Supplemental Life Insurance | Available up to 1M |
| Long-Term Disability | Contractual |
| Long-Term Disability Benefit | 66.66% of your pay period guarantee for a maximum of 20 pay periods. |
| HRA (Health Reimbursement Account)** | Yes |
| Legal Benefit Plan | Available |
| Union | Independent Pilots Association |
| Contract Amenability | 2025 |
*Basic Life Insurance & AD&D is offered up to 100k. 975 Xs the pilot’s hourly rate or 100k, whichever is less. **Available for UPS Retirees
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The percent of UPS pilots expected to retire between 2025 - 2029
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