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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
77
EIN / Pension
Plan
Pension
Protection Act
Zone Status
FIP/RP Status
Pending/
(in millions)
UPS Contributions Surcharge
Pension Fund Number 2012 2011 Implemented 2012 2011 2010 Imposed
Alaska Teamster-Employer Pension Plan 92-6003463-024 Red Red Yes/Implemented $ 4 $ 4 $ 3 No
Automotive Industries Pension Plan 94-1133245-001 Red Red Yes/Implemented 4 4 4 No
Central Pennsylvania Teamsters Defined Benefit Plan 23-6262789-001 Yellow Green Yes/Implemented 29 27 26 No
Employer-Teamsters Local Nos. 175 & 505 Pension
Trust Fund 55-6021850-001 Green Green No 9 8 8 No
Hagerstown Motor Carriers and Teamsters Pension Fund 52-6045424-001 Red Red Yes/Implemented 5 5 4 No
I.A.M. National Pension Fund / National Pension Plan 51-6031295-002 Green Green No 24 25 24 No
International Brotherhood of Teamsters Union Local
No. 710 Pension Fund 36-2377656-001 Green Yellow No 75 74 70 No
Local 705, International Brotherhood of Teamsters
Pension Plan 36-6492502-001 Red Yellow Yes/Implemented 46 58 56 No
Local 804 I.B.T. & Local 447 I.A.M.—UPS
Multiemployer Retirement Plan 51-6117726-001 Red Red Yes/Implemented 87 84 84 No
Milwaukee Drivers Pension Trust Fund 39-6045229-001 Green Green No 26 26 24 No
New England Teamsters & Trucking Industry Pension
Fund 04-6372430-001 Red Red Yes/Implemented 124 124 112 No
New York State Teamsters Conference Pension and
Retirement Fund 16-6063585-074 Red Red Yes/Implemented 65 57 52 No
Teamster Pension Fund of Philadelphia and Vicinity 23-1511735-001 Yellow Yellow Yes/Implemented 44 41 39 No
Teamsters Joint Council No. 83 of Virginia Pension Fund 54-6097996-001 Yellow Yellow Yes/Implemented 44 41 38 No
Teamsters Local 639—Employers Pension Trust 53-0237142-001 Green Green Yes/Implemented 36 33 31 No
Teamsters Negotiated Pension Plan 43-6196083-001 Red Red Yes/Implemented 24 22 20 No
Truck Drivers and Helpers Local Union No. 355
Retirement Pension Plan 52-6043608-001 Yellow Yellow Yes/Implemented 14 12 12 No
United Parcel Service, Inc.—Local 177, I.B.T.
Multiemployer Retirement Plan 13-1426500-419 Red Red Yes/Implemented 62 57 59 No
Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green No 520 476 449 No
Western Pennsylvania Teamsters and Employers Pension
Fund 25-6029946-001 Red Red Yes/Implemented 24 21 20 No
All Other Multiemployer Pension Plans 59 44 51
Total Contributions $1,325 $1,243 $1,186
In the third quarter of 2012, we reached an agreement with the New England Teamsters and Trucking Industry Pension Fund
("New England Pension Fund"), a multiemployer pension plan in which UPS is a participant, to restructure the pension liabilities for
approximately 10,200 UPS employees represented by the Teamsters. The agreement reflects a decision by the New England Pension
Fund's trustees to restructure the fund through plan amendments to utilize a "two pool approach", which effectively subdivides the
plan assets and liabilities between two groups of beneficiaries. As part of this agreement, UPS agreed to withdraw from the original
pool of the New England Pension Fund of which it had historically been a participant, and reenter the New England Pension Fund's
newly-established pool as a new employer.
Upon ratification of the agreement by the Teamsters in September 2012, we withdrew from the original pool of the New England
Pension Fund and incurred an undiscounted withdrawal liability of $2.162 billion to be paid in equal monthly installments over 50
years. The undiscounted withdrawal liability was calculated by independent actuaries employed by the New England Pension Fund, in
accordance with the governing plan documents and the applicable requirements of the Employee Retirement Income Security Act of
1974. During 2012, we recorded a charge to expense to establish an $896 million withdrawal liability on our consolidated balance
sheet, which represents the present value of the $2.162 billion future payment obligation discounted at a 4.25% interest rate. This
discount rate represents the estimated credit-adjusted market rate of interest at which we could obtain financing of a similar maturity
and seniority. As this agreement is not a contribution to the plan, the amounts reflected in the previous table do not include this $896
million non-cash transaction.