UPS 2013 Annual Report Download - page 96

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
84
Our status in the newly-established pool of the NETTI Fund is accounted for as the participation in a new multiemployer pension
plan, and therefore we recognize expense based on the contractually-required contribution for each period, and we recognize a liability
for any contributions due and unpaid at the end of a reporting period.
Based on the borrowing rates currently available to the Company for long-term financing of a similar maturity, the fair value of
the NETTI withdrawal liability as of December 31, 2013 was $783 million. We utilized Level 2 inputs in the fair value hierarchy of
valuation techniques to determine the fair value of this liability.
Multiemployer Health and Welfare Plans
We also contribute to several multiemployer health and welfare plans that cover both active and retired employees. Health care
benefits are provided to participants who meet certain eligibility requirements as covered under the applicable collective bargaining
unit. The following table sets forth our calendar year plan contributions and accruals. For those plans covered by the collective
bargaining agreement that expired on July 31, 2013, we have accrued a liability for the estimated contributions (which are included in
the following table) under our new collective bargaining agreement that has been approved, but not yet ratified (see note 16). Certain
plans have been aggregated in the “All Other Multiemployer Health and Welfare Plans” line in the table, as the contributions to each
of these individual plans are not material.
(in millions)
UPS Contributions and Accruals
Health and Welfare Fund 2013 2012 2011
Bay Area Delivery Drivers $ 29 $ 28 $ 27
Central Pennsylvania Teamsters Health & Pension Fund 20 19 18
Central States, South East & South West Areas Health and Welfare Fund 505 471 452
Delta Health Systems—East Bay Drayage Drivers 24 24 17
Employer—Teamster Local Nos. 175 & 505 9 8 8
Joint Council #83 Health & Welfare Fund 24 25 25
Local 191 Teamsters Health Fund 9 9 9
Local 401 Teamsters Health & Welfare Fund 6 6 6
Local 804 Welfare Trust Fund 67 62 58
Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund 31 29 28
Montana Teamster Employers Trust 6 6 6
New York State Teamsters Health & Hospital Fund 46 44 41
North Coast Benefit Trust 8 7 7
Northern California General Teamsters (DELTA) 84 75 73
Northern New England Benefit Trust 35 33 32
Oregon / Teamster Employers Trust 28 27 27
Teamsters 170 Health & Welfare Fund 12 12 12
Teamsters Benefit Trust 38 32 29
Teamsters Local 251 Health & Insurance Plan 11 10 10
Teamsters Local 404 Health & Insurance Plan 6 6 6
Teamsters Local 638 Health Fund 32 29 28
Teamsters Local 639—Employers Health & Pension Trust Funds 24 22 22
Teamsters Local 671 Health Services & Insurance Plan 13 12 13
Teamsters Union 25 Health Services & Insurance Plan 37 36 34
Teamsters Union Local 677 Health Services & Insurance Plan 8 8 8
Truck Drivers and Helpers Local 355 Baltimore Area Health & Welfare Fund 13 13 12
Utah-Idaho Teamsters Security Fund 18 16 15
Washington Teamsters Welfare Trust 35 32 30
All Other Multiemployer Health and Welfare Plans 44 55 50
Total Contributions $ 1,222 $ 1,156 $ 1,103