UPS pensions come in several flavors depending on whether you were non-union, a Teamster moved out of Central States, or a Teamster still in a multiemployer fund.
Where the UPS pension stands
UPS sponsors two main single-employer pension plans. The UPS Retirement Plan covers eligible non-union employees hired before July 1, 2016 and certain union employees, with benefits based on average pay; non-union accruals stopped January 1, 2023. The UPS/IBT Full-Time Employee Pension Plan covers employees who were in the Central States Pension Fund and others under certain Teamsters contracts, with benefits based on service credits. Many UPS Teamsters are still in multiemployer funds such as the Western Conference of Teamsters Pension Plan.
Lump sums and insurer transfers
UPS withdrew from the Central States Pension Fund in 2007 and paid a $6.1 billion withdrawal liability. Its 10-K doesn't report a pension annuity transfer to an insurer or a lump sum window. Whether you can take a lump sum depends on your plan, so check its summary plan description.
What a lump sum is worth in 2026
When a private plan pays a lump sum, it can't be smaller than the IRS 417(e) present value. Plans that use November rates for 2026 apply the November 2025 segment rates: 4.07% for payments in years 1 to 5, 5.15% for years 6 to 20 and 6.01% after that, with the IRS 2026 mortality table from Notice 2025-40. On those inputs, a $3,000 monthly benefit starting at 65 has a minimum lump sum of about $442,500. Your plan's lookback month can differ, so check your Summary Plan Description, and run your own benefit through the lump sum calculator.
PBGC coverage
Benefits still in a private single-employer plan are insured by the PBGC. For a plan that terminates in 2026, PBGC guarantees up to $7,789.77 a month for a straight-life annuity starting at 65, less for earlier starts or survivor forms. Benefits moved to an insurer leave the PBGC system and rely on the insurer and state guaranty associations instead.
Social Security
UPS jobs paid into Social Security, so the Windfall Elimination Provision never applied to these pensions, and WEP was repealed anyway for benefits payable after December 2023. If the pension covers your basic expenses, delaying Social Security toward 70 raises the one income source that adjusts for inflation. Model it with the Social Security calculator.
The UPS employer page lists the filings behind every date and dollar figure here.