Posted: Friday, August 24th 2012 at 12:49pm
UPS restructures pensions, sees 3Q charge of $896M
By The Associated Press
NEW YORK - UPS is restructuring pension liabilities for about 10,200 of its workers, and will book related costs of nearly $900 million in the third quarter.
United Parcel Service Inc., the world's largest package company, says it has reached a deal with the New England Teamster and Trucking Industry Pension Fund that creates a second pension plan pool. This will allow UPS to be responsible only for its own employees' pensions and freeze its liability in the original multiemployer pension plan.
The Atlanta company says the charge represents the present value of its $2.1 billion withdrawal liability from the original pool, which it will pay over the next 50 years.
The move is subject to approval by local unions.
UPS employs nearly 400,000 workers worldwide.
Associated Categories: Business News
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