Here are three things to know.
- The freeze will take effect Jan. 1, 2023. Affected employees represent about 16 percent of the workforce and hold administrative or management roles.
- UPS will replace the current benefit plan with a contribution program that will put 5 to 8 percent of a worker’s eligible salary into a 401k, based on seniority. Some employees will also receive a transition benefit, reports Bloomberg.
- Regulatory filings indicate the company’s U.S. pension plans were 76 percent funded last year, falling short $9.85 billion.
“[The new benefit plan is] something that’s been contemplated for quite some time, studied in some detail,” UPS spokesman Steve Gaut told Bloomberg. “This just makes it more predictable for the company.”
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