NEW YORK (AP) — UPS said Friday that it is restructuring pension liabilities for about 10,200 of its workers, and will book related costs of nearly $900 million in the third quarter.
The world's largest package company said 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 multi-employer pension plan.
Under the agreement, UPS employees won't see a reduction in their pension benefits, and UPS won't be required to increase cash contributions for 10 years.
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