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UPS to Freeze Pension Plan

Company is closing the plan, which covers about 70,000 employees, to reduce costs.

By Mary Schlangenstein and Katherine Chiglinsky, Bloomberg | Updated on June 28, 2017

United Parcel Service Inc. will freeze a pension plan for about 70,000 nonunion U.S. employees because of escalating costs and volatility in determining future payments, replacing it with a different retirement benefit.

UPS joins companies including DuPont and Lockheed Martin in freezing pensions, which means that some or all participants may stop accumulating benefits. UPS’s retirement obligations are on top of a $1 billion jump in capital spending being planned for this year to handle a surge in e-commerce shipments.

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