UPS

UPS will freeze pensions of thousands of nonunion employees

UPS will freeze pensions of thousands of nonunion employees

United Parcel Service Inc. told some workers Wednesday that the company plans to freeze their pensions, joining the ranks of other large employers that are moving away from the defined benefit plans.

UPS is notifying more than 70,000 nonunion workers this week that the change will take place in five years as part of a move to reduce expenses and help curb a long-term funding shortfall. As of December, UPS was about $7 billion short of the $25.3 billion needed to pay future benefits for the workers in that plan, said Steve Gaut, a company spokesman.

The affected workers will stop accruing pension benefits Jan. 1, 2023. After then, they will be able to receive only the pension...

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