central states, southeast and southwest areas pension plan ...checklist 30) tiers and ups.pdfunited...

Central States, Southeast and Southwest Areas Pension Plan Item #30 Does the application indicate whether the plan is a plan described in § 432(e)(9)(D)(vii)(III) and, if so, how is that fact reflected in the proposed benefit suspension. See section 6.07. Central States is a plan described in § 432(e)(9)(D)(vii)(III). The benefit suspension plan reflects this fact by applying different formulas and suspension caps to calculate the suspension for each of the categories of benefits or “tiers” described in subparts (I)-(III) of that statutory provision. A description of these differences is included under Sections 2.02 (Item #2) and 4.04 (Item #13) of this application. Also attached are the following document numbers: 30.1 2002-2008 Relevant excerpts from UPS Master Agreement & Riders 30.2 2007-2013 Relevant excerpts from UPS Master Agreement & Riders 30.3 2013-2018 Relevant excerpts from UPS Master Agreement & Riders 30.4 Relevant excerpts from UPS-IBT Full-Time Employee Pension Plan 30.5 Spin-Off and Withdrawal Liability Agreement and Release

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NATIONAL MASTER

UNITED PARCEL SERVICE AGREEMENT

For the Period:

December 19, 2007 through July 31, 2013

covering:

operations in, between and over all of the states, territories, and pos-sessions of the United States and operations into and out of all con-tiguous territory. The UNITED PARCEL SERVICE, INC., an OhioCorporation, and a New York Corporation, in their Common CarrierOperations hereinafter referred to as the “Employer,” and theTEAMSTERS UNITED PARCEL SERVICE NATIONALNEGOTIATING COMMITTEE representing Local Unions affiliat-ed with the INTERNATIONAL BROTHERHOOD OF TEAM-STERS, and Local Union No. __________ which Local Union isaffiliated with the INTERNATIONAL BROTHERHOOD OFTEAMSTERS, agree to be bound by the terms and conditions ofthis Agreement. United Parcel Service Cartage Services, Inc.(“CSI”) and UPS Latin America, Inc. are also a party to thisAgreement as specified in the Freight Pickup & DeliverySupplemental Agreement (“P&D Supplement”) and Challenge AirCargo Supplement, respectively.

ARTICLE 1. PARTIES TO THE AGREEMENT

The Employer and the Union adopt this Article and enter into thisAgreement with a mutual intent of preserving and protecting workand job opportunities for the employees covered by this Agreement.No bargaining unit work will be subcontracted, transferred, leased,assigned or conveyed except as provided in this Agreement.

Section 1. Operations Covered

The execution of this Agreement on the part of the Employer shallcover all employees of the Employer in the bargaining unit at any

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Upon the failure of the parties to agree within sixty (60) days, there-after, the issue of an appropriate substitute shall be submitted to anarbitrator for determination. The arbitrator’s decision shall be finaland binding.

ARTICLE 34. HEALTH & WELFARE AND

PENSION

Section 1. Health & Welfare and Pension Provisions

(a) Except as set forth in this Section, Health & Welfare and/or pen-sion contributions shall be increased by forty dollars ($40.00) perweek on August 1, 2008 and on each subsequent August 1st duringthe life of the contract. Where the employees are covered by bothTeamster Health & Welfare and Pension Funds in a Supplement,Rider or Addendum, the weekly health & welfare and pension con-tributions shall be allocated by the respective Joint SupplementalArea Negotiating Committees, subject to the approval of the JointNational Negotiating Committee. In those Supplements, Riders orAddenda, where some of the employees are covered by a TeamsterHealth and Welfare Plan and some of the employees are covered bythe Company Health and Welfare Plan, the amount of money allo-cated to the Company Health and Welfare Plan shall be the same asthe amount allocated to the Teamster Health and Welfare Plan in theSupplement, Rider or Addendum. The applicable Supplement,Rider or Addendum will reflect the appropriate agreed-to increasesto the Teamster Pension Plans in those Supplements, Riders orAddenda where all the employees are in the Company Health andWelfare Plan and/or covered by Section (f) of this Article. Except asset forth in Section (f) below, these increases shall be allocated asfollows: thirty-five cents ($0.35) per hour to Health and Welfare ineach year of the contract. The remainder of the contribution increaseeach year will be paid into pension.

The Employer’s contribution increases to the Central StatesSoutheast and Southwest Areas Health & Welfare Fund (CSH&WFund) shall be increased twenty-two dollars ($22.00) per weekeffective August 1, 2008 and fourteen dollars ($14.00) per weekeffective on each August 1 thereafter during the life of this contract.

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It is the intent of the Employer and the Union that health & welfareand pension monies will be allocated in a manner to keep wageincreases uniform. The increases accrued under this Article onAugust 1st, of each year, can only be allocated to health & welfareand/or pension except as provided within this Article. Any disputeconcerning the allocation of health & welfare and pension moneyshall be determined and/or resolved by the Joint NationalNegotiating Committee.

If, in accordance with a duly adopted funding improvement plan orrehabilitation plan, an IBT Pension Fund is required to issue aschedule pursuant to ERISA Section 305 (added by the PensionProtection Act of 2006) that requires contributions in excess ofthose contained within this Article, the Union and the Employershall promptly meet to negotiate changes in the Agreement to gen-erate sufficient savings to cover the cost of the increased contribu-tions. Agreement shall not be unreasonably withheld. Once com-pleted, the applicable Fund shall be obligated to accept the scheduleas if it was the beginning of the term of a new labor agreement.

(b) Monthly, daily and hourly health & welfare and pension con-tributions shall be converted from the weekly rate increases inaccordance with past practice.

(c) During the life of this Agreement, the Employer will continueto make applicable contributions to all IBT Health and WelfareFunds and all IBT Pension Funds (or the successor funds in case ofmerger of funds) for full-time and/or part-time employees in allSupplements, Riders and Addenda where the Employer was makingcontributions for full-time and/or part-time employees on May 1,1982, unless stated to the contrary in this Article or changes placingthese employees in UPS plans are negotiated and agreed to by theNational Negotiating Committee.

(d) In those Supplements, Riders and Addenda where the Employerwas providing health & welfare and/or pension benefit coverage toemployees (either full-time or part-time) on May 1, 1982, theEmployer will continue to provide health & welfare and/or pensionbenefit coverage under the Company plan(s), with funding underthe related trust(s) established by the Employer for this purpose, for

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the life of this Agreement unless specified otherwise in the applica-ble Supplemental Agreement, Rider, Addendum or this Article.

(e) All contractual provisions relating to health & welfare and pen-sions shall be provided in the respective Supplemental Agreements,Riders and Addenda.

(f) The agreements on Maintenance of Benefits for TeamsterHealth and Welfare Plans in the Western Conference of TeamstersSupplemental Agreement and in the Northern CaliforniaSupplement Agreement shall continue in full force and effect dur-ing the life of this Agreement. The increase in the NorthernCalifornia Supplemental Agreement shall be allocated as follows:fifty cents ($0.50) per hour to Health and Welfare in each year of thecontract. The remainder of the contribution increase set forth inSection 1.(a) each year will be paid into pension.

(g) The Employer shall not be required to contribute to any jointlytrusteed health and welfare plan, consistent with the practices andrules and regulations of such plan in effect as of August 1, 2008 anamount greater than the amount it contributed on July 31, 2008 plusthe increases required by this Master Agreement, except as may berequired by law notwithstanding any language to the contrary in anyTrust Agreement, Participation Agreement or similar document.The only exception to the above is the Maintenance of Benefits pro-vision in paragraph (f) above.

(h) In the event that national health care legislation is enacted, theparties agree to meet and discuss any ramifications of that legisla-tion on the provisions of this Article.

(i) UPS Part-time Pension Plan

(1) The UPS Pension Plan will be improved to provide monthlybenefits for part-time employees not covered by Teamster PensionPlans as follows: The benefit formula in the UPS Pension Plan forcurrent or future part-time employees who are participants will beincreased effective August 1, 2004 to fifty-five dollars ($55.00) foreach year of past and future Credited Service to a maximum of thir-ty-five (35) years of Credited Service. The benefit formula in the

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UPS Pension Plan for current or future part-time employees who areparticipants will be increased solely for purposes of the monthlyaccrued benefit, effective August 1, 2008 to sixty dollars ($60.00)for each year of future Credited Service to a maximum of 35 yearsof Credited Service. If a participant is in Covered Employment onAugust 1, 2008, he/she shall receive the sixty dollars ($60.00) ben-efit formula for the entire 2008 plan year.

The total monthly service pension benefit will be equal to the fol-lowing provided the employee meets the Credited Service require-ment.

$1,925 for retirement at any age after 35 years of part-time Credited Service$1,650 for retirement at any age after 30 years of part-time Credited Service $1,375 for retirement at age 60 with 25 years of part-time Credited Service $1,125 for retirement at any age with 25 years of part-time Credited Service(based on $45.00 per year of Credited Service)

(2) Part-time employees will receive one (1) year of CreditedService for seven hundred fifty (750) or more paid hours. (Six (6)months of part-time Credited Service will be granted for three hun-dred seventy-five (375) to five hundred (500) hours worked in a cal-endar year, and nine (9) months of part-time Credited Service willbe granted for five hundred one (501) to seven hundred forty-nine(749) hours worked in a calendar year.) This paragraph will also beapplied to determine Credited Service for all full-time employeeson the payroll on August 1, 2002 who were formerly participants inthe UPS Pension Plan.

(3) The Employer will be responsible for funding the UPS PensionPlan as required to provide the benefits described above and will beresponsible for maintaining the plan.

(4) The UPS Pension Plan will be governed by the terms of thePlan document.

(5) Effective August 1, 2002, the Employer will grant additionalyears of Credited Service in accordance with the terms of the Planto all full-time and part-time employees on the payroll on August 1,2002, who worked for UPS after they were twenty-one (21) but

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were denied Credited Service solely because the UPS Pension Planrequired that an employee be age twenty-five (25) or older to par-ticipate in the UPS Pension Plan.

(6) For those multi-employer pension plans with which the UPSPension Plan does not have reciprocity, the UPS Pension Plan willexecute a mutually agreeable reciprocity agreement with thoseplans.

(j) Long-Term Disability

(1) Full-time seniority employees will become eligible for long-term disability (LTD) after six (6) months of employment for non-occupational illnesses or injuries that last longer than twenty-six(26) weeks.

(2) Long-term disability benefits will equal sixty percent (60%) ofthe employee’s base weekly pay to a maximum of six hundred dol-lars ($600) per week for up to five (5) years. Long-term disabilitybenefits begin when short-term disability coverage ends or aftertwenty-six (26) weeks from date of disability, whichever is later.

(3) Average weekly base pay is computed by averaging paid hours(maximum of forty (40) hours per week) each week during the lastfull calendar quarter the employee worked and multiplying that bythe hourly rate of their base job. Weeks of unemployment in theprior quarter will not be counted in the calculation. If there weresubstantial weeks of unemployment, the prior full calendar quartermay be used for the calculation.

(4) The definition of disability, termination of eligibility, offsets,exclusions, limitations, claim procedures and any other relatedissues will be controlled by the Summary Plan Description.

(5) The long-term disability coverage will become effective onAugust 1, 2004 for eligible employees who become disabled afterthat date. However, pre-existing conditions will not affect theemployee’s eligibility for LTD.

(6) In those situations where a Teamster Health and Welfare Fund pro-

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vides a short term disability benefit, the employee receiving such ben-efit shall provide the UPS National LTD Plan sixty (60) days advancenotice of the estimated termination date of the short term disability. Ifsuch notice is not provided, the UPS National LTD Plan shall have theright to delay the commencement of LTD payments.

(7) Any employee receiving LTD benefits pursuant to this Plan shallbe entitled to receive health care coverage in accordance with theSPD for up to twelve (12) months only.

(k) Part-time Retiree Coverage

(1) Effective August 1, 2002 the Employer will provide health insur-ance coverage to all part-time employees, not covered by a Unionplan, who retire on or after that date.

(2) To be eligible for the coverage, the part-time employee must (i)not be eligible for Medicare; (ii) meet the same age and servicerequirements as that of a full-time employee in the sameSupplement, Rider or Addendum and at a minimum, be at leastfifty-five (55) years of age with a minimum of twenty-five (25)years of part-time service as defined in the UPS Pension Plan; (iii)be covered as an active employee by a UPS-administered healthcare plan for part-time employees at the time of retirement and; (iv)not a part-time employee because of a voluntary bid to part-timestatus in the five (5) years prior to retirement.

(3) A retiree’s legal spouse is also eligible for coverage if he or sheis not eligible for Medicare and is under age sixty-five (65).

(4) Coverage and benefit levels shall be as specified in theSummary Plan Description.

(5) Eligibility for coverage for retiree and spouse begins on the first(1st) day after the employee’s active coverage ends.

(6) The retired part-time employee will be required to make a con-tribution equal to the amount required by a retired full-time employ-ee in the same Local Union. If there is no established rate the con-tribution will be two hundred dollars ($200.00) per month.

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30.2.8

(I) Jointly Trusteed UPS/IBT Full-Time Pension Fund

The following provisions pertain to the UPS/IBT Full-TimeEmployee Pension Plan (hereinafter “UPS/IBT Plan”) to be createdfor employees who under the prior Agreement participated in theCentral States Southeast and Southwest Areas Pension Fund (“CSPlan”) and for future employees who would have participated in theCS Plan absent this agreement who have one hour of service inCovered Employment on or after January 1, 2008.

(1)Effective January 1, 2008 the Employer and the Union willestablish a new, single employer, jointly trusteed and administereddefined benefit plan within the meaning of 29 U.S.C. Section 302(c)(5) for full-time employees who under the prior agreement wouldhave participated in the CS Plan. As of December 26, 2007, theEmployer will cease to have an obligation to contribute to the CSPlan and will have no other obligation to provide such employeeswith future benefit accruals under the CS Plan.

(2) The benefit formula for current or future full-time employeeswho are participants in the UPS/IBT Plan will be as set forth belowfor each year of future service (hours worked in CoveredEmployment on or after the effective date) up to a maximum of thir-ty-five (35) years of Credited Service (such limitation is only appli-cable to service pensions). This benefit is unreduced if payable atNormal Retirement Age (age 65) and 5 years of vesting service orat age 62 with 20 years of Credited Service. Benefit payments maybegin as early as Early Retirement Age (age 50 with five years ofvesting service) and are reduced 6% per year for each year and par-tial year prior to Normal Retirement Age. There shall be no reduc-tion or change in the level of benefits described herein unless nego-tiated and agreed to by the Union.

Calendar Year Beginning Monthly BenefitJanuary 1, 2008 $132.00January 1, 2009 $132.00January 1, 2010 $135.50January 1, 2011 $147.00January 1, 2012 $158.50January 1, 2013 $170.00

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(3) Eligible employees become participants on the first day of themonth coincident with or immediately following the date the employ-ee completes one year of service with 750 hours of service (uponbecoming a participant, service credit will accrue beginning with thevery first hour of service that had been performed when the participantbegan working in Covered Employment). Employees already partici-pants in the CS Plan at the date this plan is established will be imme-diately eligible to participate in the UPS/IBT Plan. No benefits arepayable unless the participant has at least 5 years of vesting credit orhas reached Normal Retirement Age while an employee. One year ofvesting credit is earned for each calendar year in which the participantworks 750 or more hours. The Employer will grant vesting credit forthose employees employed by the Employer before the effective dateof the UPS/IBT Plan based on the employment records of theEmployer or records of the CS Plan.

(4) Full-time employees will receive one (1) year of CreditedService for each 1801 paid hours in Covered Employment in a cal-endar year beginning on or after January 1, 2008. Employees willreceive partial years of Credited Service in monthly increments (i.e.,one month if employee worked 150 or more hours in CoveredEmployment in that month). For purposes of earning service creditfor the service pensions only, full-time employees will receive oneweek of service credit if he has one hour of service in CoveredEmployment. For service pensions only, if an employee has 0-19weeks of service credit, he shall not receive any service credit forthat calendar year. If he has 20-39 weeks of service credit, theamount of credit for that year will be equal to a fraction the numer-ator of which is the number of weeks of credit and the denominatoris 40. If the employee has 40 weeks of service credit for that calen-dar year, he shall receive one year of service credit.

(5) The Employer will be responsible for funding the UPS/IBT Planas required by applicable law.

(6) In addition to the normal benefit provided in paragraph (2)above, there shall be a service benefit payable after twenty (20),twenty-five (25), thirty (30) and thirty-five (35) years of full-timeservice. There is a twenty (20) year benefit for anyone who hasreached age 50 and the amount will vary based on the person’s age.

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There is a twenty-five (25) year service retirement benefit for any-one who has twenty-five years of service regardless of age, whichshall be $2,000 per month if less than age 57 when benefits com-mence and $2,500 per month if at least 57 when benefits com-mence. The benefit for the thirty (30) year service retirement shallbe $3,000 per month regardless of the age of the retiring employee.The benefit for thirty-five (35) years service retirement shall be$3,500 per month regardless of the age of the retiring employee.The plan document shall specify the amounts for the 20 year serv-ice pension, eligibility criteria and how the benefits are calculated.

Years of Service Age Monthly Service PensionPension Credit

35 years Any age $3,500

30 or more years Any age $3,000 plus $100/yr of service for yearsover 30 up to $3,500

25 years Any Age $2,000up to age 57

25 Years 57 or older $2,500 plus $100/yr of service for yearsover 25 up to $3,500 maximum

The UPS/IBT Plan will recognize full-time service in the CS Planfor determining eligibility for the benefits in this section and willoffset at Normal Retirement Age the benefits accrued from the CSPlan commencing at Normal Retirement Age. If the benefit paidfrom the CS Plan is reduced as permitted or required by law, theamount of such reduction shall not be included in this offset.

(7) The UPS/IBT Plan will also provide eligible employees with amonthly disability benefit or lump sum disability benefit (based onage and years of service).

(8) The UPS/IBT Plan will be governed by the terms of the plandocument and trust agreement, both of which are incorporated here-in by reference. Any claims for benefits are subject to resolutionsolely through the UPS/IBT Plan administrative claims process.

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UNITED PARCEL SERVICE

ATLANTIC AREA

SUPPLEMENTAL AGREEMENT

For The Period

December 19, 2007 thru July 31, 2013

ATLANTIC AREA SUPPLEMENT

This Supplement to the National Master United Parcel ServiceAgreement shall apply to all United Parcel Service employeesworking in the classifications set forth in the Wage Schedule andwithin the jurisdiction of Locals 22, 29, 61, 71, 171, 175, 322, 355,391, 453, 505, 509, 639, 697, 822 and 992. Except as providedherein, the provisions of the National Master UPS Agreement shallprevail.

ARTICLE 46 - ACQUISITION OF SENIORITY

Section 1

A new employee shall work under the provisions of this Agreementbut shall be employed only on a thirty (30) working day trial basis,during which period he may be discharged without further recourse,provided, however, that the Employer may not discharge or disci-pline for the purpose of evading this Agreement or discriminatingagainst Union members. After working thirty (30) days within aninety (90) consecutive day period, the employee shall be placed onthe regular seniority list and his seniority date shall be the first dayworked within any ninety (90) day period of his employment. Heshall be placed on the seniority list of the classification in which heworked. In case of discipline within the probationary period, theEmployer shall notify the Local Union in writing.

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employee’s regular starting time each day until he returns to hisCenter or home. In addition, such an employee shall be furnishedclean, comfortable, sanitary lodgings, plus meals. The mealallowance shall be ten dollars ($10.00) for breakfast, twelve dollars($12.00) for lunch and fourteen dollars ($14.00) for supper.

ARTICLE 60 - AIR-CONDITIONING

All new tractor trailer feeder equipment placed in service shall beequipped with air-conditioning.

Road tractors manufactured during the years 1974, 1975, 1976,1977, shall be retrofitted with air-conditioning during a time sched-ule mutually agreed to with the Company and Local Unions.

ARTICLE 61 - HEALTH AND WELFARE AND

PENSION

Section 1 - Local Union No. 992 Health and Welfare

The Employer agrees to contribute to the Hagerstown Teamstersand Motor Carriers Welfare Fund as follows:

Effective Per Employee August 1, 2007 $977.46 per month

Employer contributions to the Health and Welfare and Pension shallbe increased a total of one dollar ($1.00) per hour on August 1, 2008and on each subsequent August 1st during the life of the contract.Allocations shall be determined by the Joint Supplemental AreaNegotiating Committee, subject to approval of the Joint NationalNegotiating Committee.

Any dispute in the allocation of Health and Welfare and Pensionmoney shall be determined and/or resolved by the Joint NationalUnited Parcel Service Negotiating Committee.

The Trust Agreement covering the Hagerstown Teamsters andMotor Carriers Welfare Fund shall be signed by the Employer andbecome a part of this Agreement.

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If an employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall continueto make the required contributions for the period of three (3)months. If an employee is injured on the job, the Employer shallcontinue to pay the required contributions until such employeereturns to work; however, such contributions shall not be paid for aperiod of more than twelve (12) months.

Action for delinquent contributions may be instituted by either theLocal Union, the Area Conference or the Trustees. DelinquentEmployer must also pay all attorneys’ fees and cost of collection.

Pension

The Employer agrees to continue contributions to the HagerstownMotor Carriers and Teamsters Pension Plan as follows:




The Trust Agreement covering the Hagerstown Motor Carriers andTeamsters Pension Plan shall be signed by the Employer andbecome a part of this Agreement.

If the employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall continueto make the required contributions for a period of three (3) months.If an employee is injured on the job, the Employer shall continue topay the required contributions until such employee returns to work;

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however, such contributions shall not be paid for a period of morethan twelve (12) months.

Action for delinquent contributions may be instituted by either theLocal Union, the Area Conference or the Trustees. DelinquentEmployer must also pay all attorneys’ fees and cost of collection.

Section 2 - Local Unions Nos. 61, 71, 391 and 509

Health and Welfare

In the jurisdiction of the Local Unions party to this Agreement, theEmployer hereby agrees to contribute to the Central States,Southeast and Southwest Areas Health and Welfare Fund the fol-lowing schedule for each employee covered by this Agreement whohas been on the payroll thirty (30) days or more:

$237.70 per week.

(a) The Employer’s contribution increases to the Central StatesSoutheast and Southwest Areas Health & Welfare Fund (CSH&WFund) shall be increased twenty-two dollars ($22.00) per weekeffective August 1, 2008 and fourteen dollars ($14.00) per weekeffective on each August 1 thereafter during the life of this contract.

By the execution of this Agreement, the Employer authorizes theEmployer’s Associations which are parties hereto to enter intoappropriate health and welfare trust agreement necessary for theadministration of such Fund and to designate the Employer Trusteesunder such agreement, hereby waiving all notice thereof and ratify-ing all actions already taken or to be taken by such Trustees withinthe scope of their authority.

If an employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall continueto make the required contributions for a period of four (4) weeks. Ifan employee is injured on the job, the Employer shall continue topay the required contributions until such employee returns to work;however, such contributions shall not be paid for a period of morethan twelve (12) months. If an employee is granted a leave of

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absence, the Employer shall collect from said employee, prior to theleave of absence being effective, sufficient monies to pay therequired contributions into the health and welfare fund during theperiod of absence.

There shall be no deductions from equipment rental of owneroperators by virtue of the contributions made to the health and welfarefund, regardless of whether the equipment rental is at the minimumrate or more and regardless of the manner of computation of owner-driver compensation. Contributions to the health and welfare fundmust be made for each week on each regular or extra employee eventhough such employee may work only part-time under the provisionsof this contract, including weeks where work is performed for theEmployer but not under the provisions of this contract, and althoughcontributions may be made for those weeks into some other health andwelfare fund. Employees who work either temporarily or in cases ofemergency under the terms of this contract shall not be covered by theprovisions of this paragraph.

Notwithstanding anything herein contained, it is agreed that in theevent the Employer is delinquent at the end of a period in the pay-ment of his contribution to the health and welfare or pension fundor funds created under this Agreement, in accordance with the rulesand regulations of the Trustees of such funds, the employees or theirrepresentatives, after the proper official of the Local Union shallhave given seventy-two (72) hour’s notice to the Employer of suchdelinquency in health and welfare and pension payments, shall havethe right to take such action as they deem necessary until such delin-quent payments are made and it is further agreed that in the eventsuch action is taken the Employer shall be responsible to theemployees for losses resulting therefrom.

Pension

(b) Jointly Trusteed UPS/IBT Full Time Pension Fund: Locals61, 71, 391, 509 and 697

The following provisions pertain to the UPS/IBT Full-TimeEmployee Pension Plan (hereinafter “UPS/IBT Plan”) to becreated for employees who under the prior Agreement par-

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30.2.17

ticipated in the Central States Southeast and SouthwestPension Fund (“CS Plan”) and for future employees whowould have participated in the CS Plan absent this agree-ment who have one hour of service in Covered Employmenton or after January 1, 2008.

(1) Effective January 1, 2008 the Employer and the Union willestablish a new, single employer, jointly trusteed and admin-istered defined benefit plan within the meaning of 29 U.S.C.Section 302(c)(5) for full-time employees who under theprior agreement would have participated in the CS Plan. Asof December 26, 2007, the Employer will cease to have anobligation to contribute to the CS Plan and will have noother obligation to provide such employees with future ben-efit accruals under the CS Plan.

(2) The benefit formula for current or future full-time employ-ees who are participants in the UPS/IBT Plan will be as setforth below for each year of future service (hours worked inCovered Employment on or after the effective date) up to amaximum of thirty-five (35) years of Credited Service (suchlimitation is only applicable to service pensions). This ben-efit is unreduced if payable at Normal Retirement Age (age65) and 5 years of vesting service or at age 62 with 20 yearsof Credited Service. Benefit payments may begin as earlyas Early Retirement Age (age 50 with five years of vestingservice) and are reduced 6% per year for each year and par-tial year prior to Normal Retirement Age. There shall be noreduction or change in the level of benefits described hereinunless negotiated and agreed to by the Union.


(3) Eligible employees become participants on the first day of

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the month coincident with or immediately following thedate the employee completes one year of service with 750hours of service (upon becoming a participant, service cred-it will accrue beginning with the very first hour of servicethat had been performed when the participant began work-ing in Covered Employment). Employees already partici-pants in the CS Plan at the date this plan is established willbe immediately eligible to participate in the UPS/IBT Plan.No benefits are payable unless the participant has at least 5years of vesting credit or has reached Normal RetirementAge while an employee. One (1) year of vesting credit isearned for each calendar year in which the participant works750 or more hours. The Employer will grant vesting creditfor those employees employed by the Employer before theeffective date of the UPS/IBT Plan based on the employ-ment records of the Employer or records of the CS Plan.

(4) Full-time employees will receive one (1) year of CreditedService for each 1801 paid hours in Covered Employment ina calendar year beginning on or after January 1, 2008.Employees will receive partial years of Credited Service inmonthly increments (i.e., one month if employee worked150 or more hours in Covered Employment in that month).For purposes of earning service credit for the service pen-sions only, full-time employees will receive one week ofservice credit if he has one (1) hour of service in CoveredEmployment. For service pensions only, if an employee has0-19 weeks of service credit, he shall not receive any serv-ice credit for that calendar year. If he has 20-39 weeks ofservice credit, the amount of credit for that year will beequal to a fraction the numerator of which is the number ofweeks of credit and the denominator is 40. If the employeehas 40 weeks of service credit for that calendar year, he shallreceive one year of service credit.

(5) The Employer will be responsible for funding the UPS/IBTPlan as required by applicable law.

(6) In addition to the normal benefit provided in paragraph (2)

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30.2.19

above, there shall be a service benefit payable after twenty(20), twenty-five (25), thirty (30) and thirty-five (35) yearsof full-time service. There is a twenty (20) year benefit foranyone who has reached age 50 and the amount will varybased on the person’s age. There is a twenty-five (25) yearservice retirement benefit for anyone who has twenty-fiveyears of service regardless of age, which shall be $2000 permonth if less than age 57 when benefits commence and$2500 per month if at least age 57 when benefits commence.The benefit for thirty (30) year service retirement shall be$3000 per month regardless of the age of the retiringemployee. The benefit for thirty-five (35) years serviceretirement shall be $3500 per month regardless of the age ofthe retiring employee. The plan document shall specify theamounts for the 20 year service pension, eligibility criteriaand how the benefits are calculated.

Years of service Age Monthly Service PensionPension Credit


30 or more years Any age $3,000 plus $100/yr of service for years over 30 up to $3,500

25 years Any Age up to age 57 $2,000

25 years 57 or older $2,500 plus $100/yr of servicefor years over 25 up to $3,500maximum

The UPS/IBT Plan will recognize full-time service in the CSPlan for determining eligibility for the benefits in this sec-tion and will offset at Normal Retirement Age the benefitsaccrued from the CS Plan commencing at NormalRetirement Age. If the benefit paid from the CS Plan isreduced as permitted or required by law, the amount of suchreduction shall not be included in this offset.

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30.2.20

(7) The UPS/IBT Plan will also provide eligible employeeswith a monthly disability benefit or lump sum disability ben-efit (based on age and years of service).

(8) The UPS/IBT Plan will be governed by the terms of the plandocument and trust agreement, both of which are incorporat-ed herein by reference. Any claims for benefits are subjectto resolution solely through the UPS/IBT Plan administra-tive claims process.

(9) If an employee is absent because of illness or off-the-jobinjury and notifies the Employer of such absence, theEmployer shall ensure that the employee is credited with upto 190 hours of pension credit or four weeks of service pen-sion credit (depending on the length of the absence). If anemployee is injured on the job, the Employer shall ensurethat the employee receives pension credit until such employ-ee returns to work; however, such pension credit shall notexceed 1801 hours of service or 40 weeks of service pensioncredit (depending on the length of the absence).

Section 3 - Local Unions Nos. 22, 29, 171, 322 and

822 Health and Welfare

(a) Effective August 1, 2007, the Employer shall contribute tothe Teamsters Joint Council No. 83 Health and Welfare Fund thesum of $222.10 per week for each regular employee covered by thisAgreement who is domiciled in the jurisdiction of Local UnionsNos. 22, 29, 171, 322 and 822.


(b) By the execution of this Agreement, the Employer agrees toenter into appropriate trust agreements necessary for the administra-

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30.2.21

tion of such fund, and to designate the Employer Trustees undersuch agreement, hereby waiving all notice thereof and ratifying allactions already taken or to be taken by such Trustees within thescope of their authority.

(c) If an employee is absent because of illness or off-the-jobinjury and notifies the Employer of such absence, the Employershall continue to make the required contributions for a period offour (4) weeks. If an employee is injured on the job, the Employershall continue to pay the required contributions until such employ-ee returns to work; however, such contributions shall not be paid fora period of more than twelve (12) months.

(d) Contributions to the health and welfare fund must be madefor each week on each regular or laid off regular employee whoworks at least one (1) day in that week under the provisions of thisAgreement, including weeks where work is performed for theEmployer but not under the provisions of this Agreement andalthough contributions may be made for those weeks into someother health and welfare fund.

(e) When a leave of absence is granted, the employee shall state,in writing, if he desires health and welfare coverage during the fullperiod of the leave of absence. If he elects not to make paymentsdirect to the trust office of the health and welfare fund, he shall haveno coverage during the full period of the leave of absence.

If he elects in writing to be covered under the health and welfarefund, he shall make contributions direct to the trust office of thehealth and welfare fund weekly or monthly in accordance with therules of the Trustees beginning with his leave of absence during theallowable period as provided by the rules of the Trustees. TheEmployer shall send a copy of the leave of absence to the trust officeof the health and welfare fund as soon as it is granted.

Pension Fund

(f) Effective August 1, 2007, the Employer shall contribute toTeamsters Joint Council No. 83 Pension Fund the sum of $273.60per week for each regular employee covered by this Agreement who

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30.2.22

is domiciled in the jurisdiction of Local Unions Nos. 22, 29, 171,322 and 822.



(g) By the execution of this Agreement, the Employer agrees toenter into appropriate trust agreements necessary for the administra-tion of such fund, and to designate the Employer Trustees undersuch agreement, hereby waiving all notice thereof and ratifying allactions already taken or to be taken by such Trustees within thescope of their authority.

(h) If an employee is absent because of illness or off-the-jobinjury and notifies the Employer of such absence, the Employershall continue to make the required contributions for a period offour (4) weeks. If an employee is injured on the job, the Employershall continue to pay the required contributions until such employ-ee returns to work; however, such contributions shall not be paid fora period of more than twelve (12) months.

(i) Contributions to the pension fund must be made for eachweek on each regular or laid off employee who works at least one(1) day in that week under the provisions of this Agreement, includ-ing weeks where work is performed for the Employer but not underthe provisions of this Agreement and although contributions may bemade for those weeks into some other pension fund.

Employees who work either temporarily or in cases of emergencyunder the terms of this Agreement shall not be covered by the pro-visions of this paragraph.

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30.2.23


Effective August 1, 2007 the Employer shall contribute to theTeamsters 639 Employers Health Trust Fund the sum of $4.72 perhour for each hour worked by each employee.



By the execution of this Agreement, the Employer, party to thisAgreement, agrees to enter into appropriate trust agreements neces-sary for the administration of such fund and to designate theEmployer Trustees under such agreement, hereby waiving all noticethereof and ratifying all actions already taken or to be taken by suchtrustees within the scope of their authority.

If a regular full-time employee is absent because of illness or offthe-job injury and notifies the Employer of such absence, theEmployer shall continue to make the required contributions on thebasis of a forty (40) hour week for a period of four (4) weeks. If aregular full-time employee is injured on the job, the Employer shallcontinue to pay the required contributions until such employeereturns to work; however, such contributions shall not be paid for aperiod of more than twelve (12) months. If a regular full timeemployee is granted a leave of absence the Employer shall collectfrom said employee, prior to the leave of absence being effective,sufficient monies to pay the required contributions into the healthand welfare fund during the period of absence.

There shall be no deduction from equipment rental of owner opera-tors by virtue of the contributions made to the health and welfarefund, regardless of whether the equipment rental is at the minimum

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30.2.24

rate or more and regardless of the manner of computation of owner-driver compensation.

Contributions to the health and welfare fund must be made in accor-dance with each Trust Agreement on each regular or extra employ-ee, even though such employee may work only part-time under theprovisions of this contract, including weeks where work is per-formed for the Employer but not under the provisions of this con-tract and although contributions may be made for those weeks intosome other health and welfare fund.

The Employer shall continue to make payments to the health andwelfare fund of Drivers, Chauffeurs and Helpers, Local 639, for thelife of this Agreement.

Pension

Effective August 1, 2007, the Employer shall contribute to theTeamsters 639-Employers Pension Trust Fund the sum of $307.00per week on each regular full time employee.



There shall be no other Pension Funds under this contract for oper-ations under this contract.

By the execution of this Agreement, the Employer party to thisAgreement agrees to enter into appropriate trust agreements neces-sary for the administration of such funds and to designate theEmployer Trustees under such agreement, hereby waiving all noticethereof and ratifying all actions already taken or to be taken by such

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30.2.25

Trustees within the scope of their authority.

If a regular full-time employee is absent because of illness or off thejob injury and notifies the Employer of such absence, the Employershall continue to make the required contributions for a period offour (4) weeks. If a regular full time employee is injured on the job,the Employer shall continue to pay the required contributions untilsuch employee returns to work; however, such contributions shallnot be paid for a period of more than twelve (12) months. If a reg-ular full time employee is granted a leave of absence, the Employershall collect from said employee prior to the leave of absence beingeffective, sufficient monies to pay the required contributions intothe pension fund during the period of absence.

There shall be no deduction from equipment rental of owner operatorsby virtue of the contributions made to the pension fund, regardless ofwhether the equipment rental is at the minimum rate or more andregardless of the manner of computation of owner driver compensation.

Contributions to the pension fund must be made for each week oneach regular or extra employee, even though such employee maywork only part-time under the provisions of this contract, includingweeks where work is performed for the Employer but not under theprovisions of this contract, and although contributions may be madefor those weeks into some other pension fund.

Section 5 - Local Union No. 453-Health and Welfare

The Employer agrees to contribute to the Western PennsylvaniaTeamsters and Employers Welfare Fund, as follows:



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30.2.26


The Trust Agreement covering the Western Pennsylvania Teamstersand Employers Welfare Fund shall be signed by the Employer andbecome a part of this Agreement.

If an employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall continueto make the required contribution for a period of three (3) months.If an employee is injured on the job, the Employer shall continue topay the required contributions until such employee returns to work;however, such contributions shall not be paid for a period of morethan twelve (12) months. Action for delinquent contributions maybe instituted by either the Local Union, the Area Conference or theTrustees. Delinquent Employer must also pay all attorneys’ fees andcost of collection.

Pension

The Employer agrees to continue contributions to the SouthwesternPennsylvania and Western Maryland Area Teamsters andEmployers Pension Fund as follows:




The Trust Agreement covering the Southwestern Pennsylvania and

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30.2.27

Western Maryland Area Teamsters and Employers Pension Fund shallbe signed by the Employer and become a part of this Agreement.

If the employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall continueto make the required contributions for a period of three (3) months.If an employee is injured on the job, the Employer shall continue topay the required contributions until such employee returns to work;however, such contributions shall not be paid for a period of morethan twelve (12) months.

Action for delinquent contributions may be instituted by either theLocal Union, the Area Conference or the Trustees. DelinquentEmployer must also pay the attorneys’ fees and cost of collection.


Health and Welfare benefits will be provided under Teamster/United Parcel Service Joint Council 40 Health Care Package. Theemployee covered as well as the nature and amount of said benefitswill be as outlined in the booklet entitled, “United Parcel ServiceHealth Care Package”, which is incorporated herein by reference.

Effective, August 1, 2002, Health and Welfare benefits will be pro-vided for retirees who retire after the date of ratification under the“Teamster/United Parcel Service Joint Council 40 Health CarePackage” which will provide a $500,000 maximum lifetime benefitas outlined in the Plan. There will be a fifty dollar ($50.00) permonth co-payment required for each retiree to participate in thePlan. The employee eligible to be covered as well as the nature andamount of said benefits will be as outlined in the booklet,“Teamster/United Parcel Service Health Care Package.”

The Employer will evaluate a number of alternative procedures forfull-time employees and retirees including, pre-certification and uti-lization reviews, managed care, health care provider contracting andother various programs. At such time that the Company implementsthose procedures or programs deemed necessary to continue quali-ty health care service in a cost effective manner, the plan booklet,“Teamster/United Parcel Service Joint Council 40 Health Care

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30.2.28

Package” shall become null and void for those affected employees.The employees covered under the new plan as well as the nature andamount of said benefits will be outlined in the new plan documentsand will reflect the appropriate changes.

Section 7 - Local Unions Nos. 175 and 505 Health

and Welfare

Effective August 1, 2007, the Employer agrees to contribute the sumof $999.68 per month to the Employer-Teamsters Local Union Nos.175 and 505 Health and Welfare Fund for all regular employeescovered by this Agreement and on the payroll of the Employer forthirty (30) days or more for an insurance program to be adminis-tered jointly by the Employer and Unions in compliance with allapplicable State and Federal laws and regulations. Premiums shallbe paid on every qualified employee who has worked thirty (30) ormore days and is on the seniority list, provided such employee shallwork five (5) days per month or is on paid vacation. If an employ-ee is injured on the job, the Employer shall continue to pay therequired contributions until such employee returns to work; howev-er, such contributions need not be paid for a period of more thantwelve (12) months.



If an employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall continueto make the required contributions for a period of four (4) weeks.

If an employee is granted a leave of absence, the Employer shallcollect from said employee, prior to the leave of absence being

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30.2.29

effective, sufficient monies to pay the required contributions to thehealth and welfare fund during the period of absence.

Contributions to the Employer-Teamsters Local Union Nos. 175 and505 Health and Welfare Fund must be made monthly on each regularemployee as provided herein; however, if the employee is coveredunder another fund by Union contract, the Employer shall not berequired to pay twice on the same employee for the same month.

Pension

Effective August 1, 2007, the Employer agrees to contribute the sumof $1148.35 per month to the Employer-Teamsters Local UnionNos. 175 and 505 Pension Fund for all regular employees coveredby this Agreement who have been on the payroll thirty (30) days ormore for a pension program to be administered jointly by theEmployer and Unions in compliance with all applicable State andFederal Laws and regulations. Premiums shall be paid on everyqualified employee who has worked thirty (30) days or more and ison the seniority list provided such employee shall work five (5) daysper month or is on paid vacation.



Compliance with this provision shall supersede the Employer’sobligation to the Union to continue any like program provided atthis time by the Employer for employees covered by thisAgreement, further provided that no employee shall forfeit hisaccrued interest in any pension or bonus plan in which he is partic-ipating now or at the time this Article becomes effective. There

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30.2.30

shall be no other pension fund under this Agreement for operationsunder this Agreement.

If an employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall continueto make the required contributions for a period of four (4) weeks.

If an employee is injured on the job, the Employer shall continue topay the required contributions until such employee returns to work;however, such contributions need not be paid for a period of more thantwelve (12) months. If an employee is granted a leave of absence, theEmployer shall collect from said employee, prior to the leave ofabsence being effective, sufficient monies to pay the required contri-butions into the pension fund during the period of absence.

Contributions to the Employer-Teamsters Local Union Nos. 175and 505 Pension Fund must be made monthly on each regularemployee as provided herein; however, if the employee is coveredunder another fund by Union contract, the Employer shall not berequired to pay twice on the same employee for the same month.

By the execution of this Agreement, the Employer authorizes theEmployers’ Associations which are parties hereto to enter intoappropriate trust agreements necessary for the administration ofsuch fund, and to designate the Employer Trustees under suchagreement, hereby waiving all notice thereof and ratifying allactions already taken, or to be taken, by all such Trustees within thescope of their authority.


and Pension

Effective August 1, 2007 the Employer shall continue to pay intothe health and welfare fund the amount of $2.22 per hour for eachstraight time hour or fraction thereof paid to each employee coveredby this Agreement or by subsequent collective bargaining agree-ments between the parties hereto, up to but not in excess of fifty(50) straight time hours in any one workweek in the case of eachemployee.

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30.2.31

Effective August 1, 2007, the Employer shall contribute $132.40 perweek for each employee covered by this Agreement or subsequentcollective bargaining agreements who shall receive pay during thatweek. Effective August 1, 2008, August 1, 2009, August 1, 2010,August 1, 2011, August 1, 2012, increases to the health and welfarefund shall be allocated to the above weekly contributions rate.Should an increase allocated by the Joint National NegotiatingCommittee be based on an hourly basis, said figure shall be multi-plied by forty (40) hours and added appropriately to the weekly con-tribution rate.

Effective August 1, 2007, the Employer agrees to pay into the pensionfund the amount of $6.91 per hour for each straight time hour or frac-tion thereof paid to each employee covered by this Agreement or bysubsequent collective bargaining agreements between the parties here-to, up to but not in excess of forty (40) straight time hours in any oneworkweek in the case of each employee.

It is understood that the Union shall determine during the life of thisAgreement whether to apply future increases to health and welfarefund or pension fund.

Employer contributions to the Health and Welfare and Pension shallbe increased a total of one dollar ($1.00) per hour on August 1, 2008and on each subsequent August 1st during the life of the contract.Allocations shall be determined by the Joint Supplemental AreaNegotiating Committee, subject to the approval of the JointNational Negotiating Committee.


Eastern Shore Teamsters - Health & Welfare

Effective August 1, 2007, the Employer will contribute to theEastern Shore Teamsters Health and Welfare Fund, Salisbury,Maryland, $5.95 per hour for each employee covered by thisAgreement, not to exceed forty (40) straight-time hours in any weekfor each employee.

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30.2.32


Eastern Shore Teamsters - Pension

Effective August 1, 2007, the Employer shall contribute to theEastern Shore Teamsters Pension Fund, Salisbury, Maryland, thesum of $253.00 per week on each regular full time employee.



There shall be no other Pension Funds under this contract for oper-ations under this contract.

By the execution of this Agreement, the Employer party to thisAgreement agrees to enter into appropriate trust agreements neces-sary for the administration of such funds and to designate theEmployer Trustees under such agreement, hereby waiving all noticethereof and ratifying all actions already taken or to be taken by suchTrustees within the scope of their authority.

If a regular full-time employee is absent because of illness or offthe-job injury and notifies the Employer of such absence, theEmployer shall continue to make the required contributions for aperiod of four (4) weeks.

If a regular full-time employee is injured on the job, the Employer

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30.2.33

shall continue to pay the required contributions until such employ-ee returns to work; however, such contributions shall not be paid fora period of more than twelve (12) months. If a regular full-timeemployee is granted a leave of absence, the Employer shall collectfrom said employee, prior to the leave of absence being effective,sufficient monies to pay the required contributions into the pensionfund during the period of absence.

There shall be no deduction from equipment rental of owner opera-tors by virtue of the contributions made to the pension fund, regard-less of whether the equipment rental is at the minimum rate or moreand regardless of the manner of computation of owner driver com-pensation.

Contributions to the pension fund must be made for each week oneach regular or extra employee, even though such employee maywork only part-time under the provisions of this contract, includingweeks where work is performed for the Employer but not under theprovisions of this contract, and although contributions may be madefor those weeks into some other pension fund.

Section 9

Disputes or questions of interpretation concerning the requirementto make contributions on behalf of particular employees or classifi-cations of employees must be submitted directly to the ConferenceJoint Area Committee by either the Local Union or the Trustees. Inthe event of such disputes or questions, the Company shall not bedeemed to be delinquent, while the matter is being considered, butif the Conference Joint Area Committee, by majority vote, deter-mines that contributions are required, the Company shall pay to theTrust Fund the amounts due together with any other charges uni-formly applicable to past due contributors. The Conference JointArea Committee may also determine whether the Company’s claimwas bona fide. In the event that the Conference Joint AreaCommittee is deadlocked, the matter shall be resolved by theNational Grievance Committee.

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30.2.34

UNITED PARCEL SERVICE

The Central Region of Teamsters

Supplemental Agreement

For the Period beginning upon ratification

through July 31, 2013

The following Articles and/or Sections of this Central Region ofTeamsters Supplement shall supersede or be additions to the corre-sponding Articles and/or Sections of the National Master UnitedParcel Service Agreement.

ARTICLE 1-PROBATIONARY

EMPLOYEES-SEASONAL EMPLOYEES

Section 1

(a) Probationary employees: a new employee shall work under theprovisions of this Agreement but shall be employed only on a thir-ty (30) working day trial basis, during which period he/she may bedischarged without further recourse; provided however, that theEmployer may not discharge or discipline for the purpose of evad-ing this Agreement or discriminating against union members. Afterworking thirty (30) days within a ninety (90) consecutive day peri-od, the employee shall be placed on the regular seniority list, andhis/her seniority date shall revert back to the first (1st) day of thethirty (30) day period in which the employee gained seniority.

On days where the Employer has exhausted the air drivers list, pre-seniority drivers may be used for air and these days would not counttoward seniority. The Employer would be obligated to follow theconditions outlined under Article 40, Section 1 of the MasterAgreement.

171

30.2.36

ARTICLE 14 -HEALTH & WELFARE

AND PENSIONS

Section 1

Contribution increases to benefit plans covering members of LocalUnions 344, 135 and 688 shall be made in accordance with Article34 of the National Master Agreement.

(a) The Employer’s contribution increases to the Central StatesSoutheast and Southwest Areas Health & Welfare Fund (CSH&WFund) shall be increased twenty-two dollars ($22.00) per weekeffective August 1, 2008 and fourteen dollars ($14.00) per weekeffective on each August 1 thereafter during the life of this contract.

(b) Jointly Trusteed UPS/IBT Full Time Pension Fund

The following provisions pertain to the UPS/IBT Full-TimeEmployee Pension Plan (hereinafter “UPS/IBT Plan”) to be createdfor employees who under the prior Agreement participated in theCentral States Southeast and Southwest Pension Fund (“CS Plan”)and for future employees who would have participated in the CSPlan absent this Agreement who have one hour of service inCovered Employment on or after January 1, 2008.

(1) Effective January 1, 2008 the Employer and the Union willestablish a new, single employer, jointly trusteed and administereddefined benefit plan within the meaning of 29 U.S.C. Section302(c)(5) for full-time employees who under the prior Agreementwould have participated in the CS Plan. As of December 26, 2007,the Employer will cease to have an obligation to contribute to theCS Plan and will have no other obligation to provide such employ-ees with future benefit accruals under the CS Plan.

(2) The benefit formula for current or future full-time employeeswho are participants in the UPS/IBT Plan will be as set forth belowfor each year of future service (hours worked in CoveredEmployment on or after the effective date) up to a maximum of thir-ty-five (35) years of Credited Service (such limitation is only appli-

203

30.2.37

cable to service pensions). This benefit is unreduced if payable atNormal Retirement Age (age 65) and 5 years of vesting service orat age 62 with 20 years of Credited Service. Benefit payments maybegin as early as Early Retirement Age (age 50 with five years ofvesting service) and are reduced 6% per year for each year and par-tial year prior to Normal Retirement Age. There shall be no reduc-tion or change in the level of benefits described herein unless nego-tiated and agreed to by the Union.


(3) Eligible employees become participants on the first day of themonth coincident with or immediately following the date theemployee completes one year of service with 750 hours of service(upon becoming a participant, service credit will accrue beginningwith the very first hour of service that had been performed when theparticipant began working in Covered Employment). Employeesalready participants in the CS Plan at the date this plan is estab-lished will be immediately eligible to participate in the UPS/IBTPlan. No benefits are payable unless the participant has at least 5years of vesting credit or has reached Normal Retirement Age whilean employee. One year of vesting credit is earned for each calendaryear in which the participant works 750 or more hours. TheEmployer will grant vesting credit for those employees employedby the Employer before the effective date of the UPS/IBT Planbased on the employment records of the Employer or records of theCS Plan.

(4) Full-time employees will receive one (1) year of CreditedService for each 1801 paid hours in Covered Employment in a cal-endar year beginning on or after January 1, 2008. Employees willreceive partial years of Credited Service in monthly increments (i.e.,one month if employee worked 150 or more hours in CoveredEmployment in that month). For purposes of earning service credit

204

30.2.38

for the service pensions only, full-time employees will receive oneweek of service credit if he/she has one hour of service in CoveredEmployment. For service pensions only, if an employee has 0-19weeks of service credit, he/she shall not receive any service creditfor that calendar year. If he/she has 20-39 weeks of service credit,the amount of credit for that year will be equal to a fraction thenumerator of which is the number of weeks of credit and thedenominator is 40. If the employee has 40 weeks of service creditfor that calendar year, he/she shall receive one year of service cred-it.


(6) In addition to the normal benefit provided in paragraph (2)above, there shall be a service benefit payable after twenty (20),twenty-five (25), thirty (30) and thirty-five (35) years of full-timeservice. There is a twenty (20) year benefit for anyone who hasreached age 50 and the amount will vary based on the person’s age.There is a twenty-five (25) year service retirement benefit for any-one who has twenty-five years of service regardless of age, whichshall be $2000 per month if less than age 57 when benefits com-mence and $2500 per month if at least age 57 when benefits com-mence. The benefit for thirty (30) year service retirement shall be$3000 per month regardless of the age of the retiring employee. Thebenefit for thirty-five (35) years service retirement shall be $3500per month regardless of the age of the retiring employee. The plandocument shall specify the amounts for the 20 year service pension,eligibility criteria and how the benefits are calculated.

Years of service Age Monthly Service PensionPension Credit


30 or more years Any age $3,000 plus $100/yr of serv-ice for years over 30 up to$3,500

205

30.2.39

25 years Any Age up to age 57 $2,000

25 years 57 or older $2,500 plus $100/yr of serv-ice for years over 25 up to$3,500 maximum

The UPS/IBT Plan will recognize full-time service in the CS Planfor determining eligibility for the benefits in this section and willoffset at Normal Retirement Age the benefits accrued from the CSPlan commencing at Normal Retirement Age. If the benefit paidfrom the CS Plan is reduced as permitted or required by law, theamount of such reduction shall not be included in this offset.


(8) The UPS/IBT Plan will be governed by the terms of the plandocument and trust agreement, both of which are incorporated here-in by reference. Any claims for benefits are subject to resolutionsolely through the UPS/IBT Plan administrative claims process.

Section 2

The Employer shall provide pension benefit coverage to part-timeemployees under the terms and conditions as may be contained inthe United Parcel Service Pension Plan as required by law.

Section 3

The Employer and the Union agree that they will undertake toattempt to establish appropriate reciprocity agreements to protectthe pension rights of employees.

Section 4 Part-Time Medical Coverage

(a) If there are any part-time employees covered by a TeamsterHealth and Welfare Fund they will continue to be covered by thosefunds.

206

30.2.40

SOUTHERN REGION OF TEAMSTERS

AND

UNITED PARCEL SERVICE, INC.

SUPPLEMENTAL AGREEMENT

ARTICLE 46 – ACQUISITION OF SENIORITY

SECTION 1 – PROBATIONARY PERIOD

A new employee shall work under the provisions of this Agreementbut shall be employed only on a thirty (30) working day trial basis,during which period the employee may be discharged without fur-ther recourse, provided however, that the Employer may not dis-charge or discipline for the purpose of evading this Agreement ordiscriminating against Union members. On the thirty-first (31st)working day within one hundred and twenty (120) consecutive dayperiod, the employee shall be placed on the regular seniority list andthe employee’s seniority date shall be the first day worked withinthe one hundred and twenty (120) day period.

SECTION 2 – SEASONAL EMPLOYEES

No seasonal employee shall be hired prior to October 1st of eachCalendar year.

Any employee hired after October 1st shall not accrue days towardsseniority in the months of October, November and December.

Seasonal employees, when hired, shall be notified they are season-al by signing a seasonal-employee notice.

The Employer and the Local Union will meet to review the possi-bility of utilizing present part-time employees to perform seasonalwork for the months of October, November and December.

- 167 -

30.2.42

funds, shall continue to make such payments for the life of thisAgreement.

In the event the Central States Southeast and Southwest AreasHealth and Welfare Fund does not maintain the benefit coverage andretiree contribution rate for retiree insurance (including spousalcoverage) in effect on the date of ratification of this agreement, theUnion and the Employer shall meet to determine and agree if thereis a substitute multi-employer plan which will provide comparablecoverage. If mutual agreement is reached to provide a suitable plan,the contribution payable by the Employer pursuant to Article 34Section 1(a) shall be paid to the new plan.

PART-TIME EMPLOYEES

(a) Effective January 1, 2008 Health and Welfare coverage for allpart-time employees on the payroll at that time and those hiredthereafter will be provided pursuant to the terms of an Employersponsored nationwide healthcare plan, namely, the UPS NationalHealth Plan for Part-time Employees. (A copy of the Summary PlanDescription will be provided.) Features of the Plan will include aprescription card. This paragraph shall supersede any provisions onthe same subject in any Supplement, Rider or Addendum, includingthose Supplemental provisions which require part-time benefits tobe equal to or the same as full time medical benefits.

(b) Notwithstanding any contrary provision in this Supplement or anyRider or Addendum, individual health care coverage will be madeavailable to part-time employees hired after August 1, 2008 aftertwelve (12) months of active employment and spousal or dependentcoverage will be made available to these part-time employees eighteen(18) months after their initial date of employment.

ARTICLE 69 – PENSION

SECTION 1 – JOINTLY TRUSTEE UPS/IBT FULL

TIME PENSION FUND

The following provisions pertain to the UPS/IBT Full-Time

- 231 -

30.2.43

Employee Pension Plan (hereinafter “UPS/IBT Plan”) to be createdfor employees who under the prior Agreement participated in theCentral States Southeast and Southwest Areas Pension Fund (“CSPlan”) and for future employees who have participated in the CSPlan absent this Agreement who have one (1) hour of service inCovered Employment on or after January 1, 2008.

(1) Effective January 1, 2008, the Employer and the Union willestablish a new, single Employer, jointly trustee and administereddefined benefit plan within the meaning of 29 U.S.C. Section 302(c) (5) for full time employees who under the prior agreementwould have participated in the CS Plan. As of December 26, 2007,the Employer will cease to have an obligation to contribute to theCS plan and will have no other obligation to provide such employ-ees with future benefits accruals under the CS Plan.

(2) The benefit formula for current or future full time employeeswho are participants in the UPS/IBT Plan will be set forth below foreach year of future service (hours worked in Covered Employmenton or after the effective date) up to a maximum of thirty-five (35)years of Credited Service (such limitation is only applicable to serv-ice pensions). This benefit is unreduced if payable at NormalRetirement Age (age 65) and 5 years of vesting service or at age 62with twenty (20) years of credited service. Benefit payments maybegin as early as Early Retirement Age (age 50 with 5 years of vest-ing service) and are reduced 6% per year for each year and partialyear prior to Normal Retirement Age. There shall be no reductionor change in the level of benefits described herein unless negotiatedand agreed to by the Union.


(3) Eligible employees become participants on the first day of themonth coincident with or immediately following the date the

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employee completes one (1) year of service with 750 hours of serv-ice (upon becoming a participant, service credit will accrue begin-ning with the very first hour of service that had been performedwhen the participant began working in Covered Employment).Employees already participants in the CS Plan at the date this Planis established will be immediately eligible to participate in theUPS/IBT Plan. No benefits are payable unless the participant has atleast five (5) years of vesting credit or has reached NormalRetirement Age while an employee. One (1) year of vesting creditis earned for each calendar year in which the participant works 750or more hours. The Employer will grant vesting credit for thoseemployees employed by the Employer before the effective date ofthe UPS/IBT Plan based on the employment records of theEmployer or records of the CS Plan.

(4) Full-time employees will receive one (1) year of CreditedService for each 1801 paid hours in Covered Employment in a cal-endar year beginning on or after January 1, 2008. Employees willreceive partial years of Credited Service in monthly increments (i.e.one (1) month if employee worked 150 or more hours in CoveredEmployment in that month). For purposes of earning service creditfor the service pensions only, full-time employees will receive one(1) week of service credit if he has one (1) hour of service inCovered Employment in that week. For service pension only, if anemployee has 0-19 weeks of service credit, he shall not receive anyservice credit for that calendar year. If he has 20-39 weeks of serv-ice credit, the amount of credit for that year will be equal to a frac-tion the numerator of which is the number of weeks of credit andthe denominator is 40. If the employee has 40 weeks of servicecredit for the calendar year, he shall receive one (1) year of servicecredit.


(6) In addition to the normal benefit provided in paragraph (2)above, there shall be a service benefit payable after twenty (20),twenty-five (25), thirty (30) and thirty-five (35) years of full timeservice. There is a twenty (20) year benefit for anyone who hasreached age 50 and the amount will vary based on the person’s age.

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There is a twenty-five (25) year service retirement benefit for any-one who has twenty-five (25) years of service regardless of age,which shall be $2,000 per month if less than age 57 when benefitscommence and $2,500 per month if at least 57 when benefits com-mence. The benefit for the thirty (30) year service retirement shallbe $3,000 per month regardless of the age of the retiring employee.The benefit for thirty-five (35) years of service retirement shall be$3,500 per month regardless of the age of the retiring employee.The Plan Document shall specify the amounts for the twenty (20)year service pension, eligibility criteria and how the benefits are cal-culated.

Years of Service Pension Credit Age Monthly Service Pension

35 Years Any Age $3,500

30 or More Years Any Age $3,000 plus $100/yr of servicefor years over 30 up to $3,500

25 Years Any Age Up To 57 $2,000

25 Years 57 or Older $2,500 plus $100/yr of servicefor years over 25 up to $3,500

maximum

The USP/IBT Plan will recognize full time service in the CS Planfor determining eligibility for the benefits in this Section and willoffset at Normal Retirement Age the benefits accrued from the CSPlan commencing at Normal Retirement Age. If the benefit paidfrom the CS Plan is reduced as permitted or required by law, theamount of such reduction shall not be included in this offset.


(8) The UPS/IBT Plan will be governed by the terms of the PlanDocument and Trust Agreement, both of which are incorporatedherein by reference. Any claims for benefits are subject to resolu-

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tion solely through the UPS/IBT Plan administrative claimsprocess.

If an employee is absent because of illness or off-the-job injury andnotifies the Employer of such absence, the Employer shall ensurethat the employee is credited with up to 190 hours of pension cred-it or four (4) weeks of service pension credit (depending on theabsence). If an employee is injured on the job, the Employer shallensure that the employee receives pension credit until such employ-ee returns to work; however, such pension credit shall not exceed1801 hours of service or 40 weeks of service pension credit(depending on the length of the absence).

SECTION 2

Effective January 1, 1977, the Employer shall provide PensionBenefit Coverage to part-time employees under the terms and con-ditions as may be contained in the United Parcel Service PensionPlan as required by law. Effective August 1, 2002 the Company andUnion agree that the part-time employees covered under the UnitedParcel Service Plan will receive the following improvement to theplan.

(1) The UPS Pension Plan covering only part-time employees work-ing in areas where part-time employees are not covered byTeamsters Pension Plans, will be improved to provide monthly ben-efits for a part-time employee with seven hundred and fifty (750)paid hours of credit service per year.

The total monthly service pension benefit will be equal to the fol-lowing provided the employee meets the credit service require-ments:

$1,925.00 for retirement at any age after 35 years of credited serv-ice.$1,650.00 for retirement at any age after 30 years of credited serv-ice.$1,375.00 for retirement at age 60 with 25 years of credited service.$1,125.00 for retirement at any age with 25 years of credited serv-ice.

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The monthly benefit formula under the UPS Pension Plan will belisted in Article 34 Section 1 (g) (i) of the National Master UnitedParcel Service Agreement.

$55.00 times part-time Credited Service years subject to a maxi-mum 35 years service limit.

The benefit formula in the UPS Pension Plan for current or futurepart-time employees who are participants will be increased solelyfor the purpose of the monthly accrued benefit, effective August 1,2008 to sixty dollars ($60.00) for each year of future CreditedService to a maximum of thirty-five (35) years of Credited Service.If a participant is in Covered Employment on August 1, 2008 he/sheshall receive the sixty dollar ($60.00) benefit formula for the entire2008 plan year.

(2) Part-Time Employees will receive one (1) year of CreditedService for 750 or more paid hours. Six months of Part-TimeCredited Service will be granted for 375 to 500 hours worked in acalendar year, and 9 months of part-time Credited Service will begranted for 501 to 749 hours worked in a calendar year.

(3) The Employer will be responsible for funding the UPS PensionPlan as required to provide the benefits.

ARTICLE 70 – MECHANICS

Mechanical department employees shall have classification seniori-ty within their Center and applications and provisions for seniorityshall be as stated below.

SECTION 1 – STARTING TIMES

(A) Full-time mechanics, in the order of their seniority within theirclassification and by Center, shall have the right to select their start-ing times semi-annually from the schedule posted by the Employer.

(B) Starting times for these employees shall be posted on the first(1st) Monday in February and August and shall remain posted forone (1) week before bidding.

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central states, southeast and southwest areas pension plan ...checklist 30) tiers and ups.pdfunited...

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