United Parcel Service Freezes Pension Plan for Non-Union Workers

Shares of United Parcel Service were up less than 1% Wednesday morning after the parcel delivery company said late Tuesday it amended a pension plan for non-union employees that will cease accruals of future service and compensation benefits effective Jan. 1, 2023.

The company said it amended a 401(k) plan to allow the previously ineligible non-union workers to receive UPS retirement contributions, ranging from 5% to 8% of eligible compensation based on a worker’s length of employment, also effective Jan. 1, 2023. On Tuesday, The Wall Street Journal said the company was planning to freeze pension plans for non-union employees in an attempt to contain the burden of a retirement fund with a nearly $10 billion deficit.

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