Amendment No. 2 to the UPS Savings Plan



  
 Exhibit 10.3(2)

  
 AMENDMENT NUMBER TWO 
 TO THE 
 UPS SAVINGS PLAN

 EFFECTIVE AS OF JANUARY 1, 1998 
  
 WHEREAS, The United Parcel Service (the “Company”) maintains the UPS Savings Plan (the “Plan”) as amended and restated
effective January 1, 1998; and 
  
 WHEREAS, the Board
reserved the right in Section 14.1 of the Plan to amend, modify or change the Plan from time to time; and 
  
 WHEREAS, it is desired to further amend the Plan to (1) add Code § 401(a)(9) model amendment provisions in Appendix 9.4, (2) permit Plan
Trustees to establish a charge for distributions from the Plan and (3) cease loan rollovers into the Plan; and 
  
 WHEREAS, except as otherwise provided, this Amendment Number Two shall be effective as of the dates set forth below; and 
  
 NOW, THEREFORE, the Plan is hereby amended as follows: 
  
 1. Section 3.6(e), related to rollovers from qualified plans or Conduit
IRA’s, is amended, effective January 1, 2004, to read as follows: 
  
 (e) After-tax employee contributions and loans distributed from a qualified retirement plan, annuity contract or IRA may not be contributed to the Plan under this Section 3.6. 
  
 2. Section 9.4, Required Beginning Date, is amended, effective January
1, 2003, to add the following paragraph to the end of such Section. 
  
 Effective January 1, 2003, the Plan will apply the minimum distribution requirements of Code § 401(a)(9) in accordance with Appendix 9.4 to the Plan and the Code § 401(a)(9) Regulations that were published
in the Federal Register on April 17, 2002. 
  
 3. Article XII.,
EXPENSES, is amended, effective January 1, 2004, to read as follows: 
  
 All reasonable and proper expenses of the Plan and the Trust Fund (within the meaning of ERISA § 403(c)(l) and § 404(a)(l)(A)), including (1) the compensation of each Investment Manager and the Trustee, (2)
the expenses related to the Plan’s administration and (3) any taxes that may be levied or assessed against the Trustee on account of the Trust Fund will be paid from the Trust Fund, unless the payment of the expense would constitute a
“prohibited transaction” within the meaning of ERISA § 406 or Code § 4975. Charges for processing distributions, rollovers and loans will be allocated directly to the Account of each Participant or Beneficiary who has requested a
distribution, 

  









 
rollover or loan. The charges shall be established by the Committee from time to time and may vary depending on the type of distribution, rollover or loan
requested by the Participant or Beneficiary. All other expenses shall be paid from forfeitures or to the extent forfeitures are insufficient, shall be allocated among all of the Accounts on a pro rata basis. The Employer Companies, however, will
have the right to pay all or any part of any expenses and to be reimbursed from the Trust Fund for any expenses paid by them that are properly payable from the Trust Fund. Any expenses that cannot be paid from the Trust Fund will be paid by the
Employer Companies. 
  
 4. The Plan is amended, effective January
1, 2003, to insert the following Appendix 9.4 at the end of the Plan: 
  
 APPENDIX 9.4 
  
 MINIMUM DISTRIBUTION REQUIREMENTS.

  
 Section 1. General Rules. 
  
 1.1. Effective Date. The provisions of this Appendix 9.4 will apply for
purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. 
  
 1.2. Precedence. The requirements of this article will take precedence over any inconsistent provisions of the Plan. However, the only benefit payment
options available from the Plan are contained in Section 9.5 of the Plan. This Appendix 9.4 does not provide any benefit payment option that is not provided in such Section. 
  
 1.3. Requirements of Treasury Regulations Incorporated. All distributions required under this Appendix 9.4 will be
determined and made in accordance with the Code § 401(a)(9) Treasury Regulations. 
  
 Section 2. Time and Manner of Distribution. 
  
 2.1. Required Beginning Date. The Participant’s entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant’s required beginning date. 
  
 2.2. Death of Participant Before Distributions Begin. If the
Participant dies before distributions begin, the Participant’s entire interest will be distributed, or begin to be distributed, no later than as follows: 
  

(a) If the Participant’s surviving spouse is the Participant’s sole designated Beneficiary, then distributions to the surviving spouse will
begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or December 31 of the 

  

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calendar year in which the Participant would have attained age 701⁄2, if later. 
  
 (b) If the Participant’s surviving spouse is not the Participant’s sole designated Beneficiary, then distributions
to the designated Beneficiary will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
  
 (c) If there is no designated Beneficiary as of September 30 of the year following the year of the Participant’s death, the Participant’s entire
interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
  
 (d) If the Participant’s surviving spouse is the Participant’s sole designated Beneficiary and the surviving spouse dies after the Participant
but before distributions to the surviving spouse begin, this section 2.2, other than section 2.2(a), wilt apply as if the surviving spouse were the Participant. 
  
 For purposes of this section 2.2 and section 4, unless section 2.2(d) applies, distributions are considered to begin on the
Participant’s required beginning date. If section 2.2(d) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under section 2.2(a). If distributions under an annuity purchased
from an insurance company irrevocably commence to the participant before the participant’s required beginning date (or to the participant’s surviving spouse before the date distributions are required to begin to the surviving spouse under
section 2.2(a)), the date distributions are considered to begin is the date distributions actually commence. 
  
 2.3. Forms of Distribution. Unless the Participant’s interest is distributed in the form of an annuity purchased from an insurance company or
in a single sum on or before the required beginning date, as of the first distribution calendar year all benefit payments from the Plan will be made in accordance with sections 3 and 4 of this Appendix. If the Participant’s interest is
distributed in a benefit payment option other than a single sum, such payments will be made in accordance with the requirements of Code § 401 (a)(9) and the Treasury Regulations thereunder. 
  
 Section 3. Required Minimum Distributions During Participant’s Lifetime.

  
 3.1. Amount of Required Minimum Distribution For Each
Distribution Calendar Year. During the Participant’s lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: 
  
 (a) the quotient obtained by dividing the Participant’s Account balance by the distribution period in the Uniform
Lifetime Table set forth in Treasury Regulation 1.401 (a)(9)-9, using the Participant’s age as of the Participant’s birthday in the distribution calendar year; or 
  

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 (b) if the Participant’s sole designated Beneficiary for the distribution calendar year is the
Participant’s spouse, the quotient obtained by dividing the Participant’s Account balance by the number in the Joint and Last Survivor Table set forth in Treasury Regulation 1.401(a)(9)-9, using the Participant’s and spouse’s
attained ages as of the Participant’s and spouse’s birthdays in the distribution calendar year. 
  
 3.2. Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death. Required minimum distributions will be determined
under this Section 3 beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant’s date of death. 
  
 Section 4. Required Minimum Distributions After Participant’s Death. 
  
 4.1. Death On or After Date Distributions Begin. 
  
 (a) Participant Survived by Designated Beneficiary. If the Participant dies
on or after the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant’s designated Beneficiary, determined as follows: 
  
 (1) The Participant’s remaining life expectancy is calculated using
the age of the Participant in the year of death, reduced by one for each subsequent year. 
  
 (2) If the Participant’s surviving spouse is the Participant’s sole designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the
year of the Participant’s death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the surviving spouse’s death, the remaining life expectancy of the
surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year. 
  
 (3) If the Participant’s surviving spouse is not the
Participant’s sole designated Beneficiary, the designated Beneficiary’s remaining life expectancy is calculated using the age of the designated Beneficiary in the year following the year of the Participant’s death, reduced by one for
each subsequent year. 
  

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 (b) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there
is no designated Beneficiary as of September 30 of the year after the year of the Participant’s death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s Account balance by the Participant’s remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. 
  
 4.2. Death Before Date Distributions Begin. 
  
 (a) Participant Survived by Designated Beneficiary. If the Participant dies
before the date distributions begin and there is a designated Beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account balance by the remaining life expectancy of the Participant’s designated Beneficiary, determined as provided in section 4.1. 
  
 (b) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated Beneficiary as of September 30 of
the year following the year of the Participant’s death, distribution of the Participant’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 

 
 (c) Death of Surviving Spouse Before Distributions to Surviving Spouse
Are Required to Begin. If the Participant dies before the date distributions begin, the Participant’s surviving spouse is the Participant’s sole designated Beneficiary, and the surviving spouse dies before distributions are required to
begin to the surviving spouse under section 2.2(a), this section 4.2 will apply as if the surviving spouse were the Participant. 
  
 Section 5. Definitions. The following terms have the following meanings for purposes of this Appendix 9.4. 
  
 5.1. Designated Beneficiary. The individual who is designated as the
Beneficiary under Section 9.6 of the Plan and is the designated Beneficiary under Code § 401(a)(9) and Treasury Regulation 1.401(a)(9)-4, Q&A-1. 
  
 5.2. Distribution Calendar Year. A calendar year for which a minimum distribution is required. For distributions beginning before the
Participant’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant’s required beginning date. For distributions beginning after the Participant’s
death, the first distribution calendar year is the calendar year in which distributions are required to begin under 

  

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section 2.2 of this Appendix. The required minimum distribution for the Participant’s first distribution calendar year will be made on or before the
Participant’s required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant’s required beginning
date occurs, will be made on or before December 31 of that distribution calendar year. 
  
 5.3. Life Expectancy. Life expectancy as computed by use of the Single Life Table in Treasury Regulation 1.401(a)(9)-9. 
  

5.4. Participant’s Account Balance. The Account balance as of the last valuation date in the calendar year immediately preceding the
distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account balance as of dates in the valuation calendar year after the valuation date and decreased by
distributions made in the valuation calendar year after the valuation date. The Account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the distribution
calendar year if distributed or transferred in the valuation calendar year. 
  
 5.5 Required Beginning Date. The date specified in § 9.4 of the Plan. 
  
 IN WITNESS WHEREOF, the undersigned certify that United Parcel Service of America, Inc., based upon action by its Board of Directors on December
23, 2003, has caused this Amendment Number Two to be adopted. 
  

					
	ATTEST:	 	 	 	UNITED PARCEL SERVICE OF AMERICA, INC.
			
	/s/    JOSEPH R. MODEROW      	 	 	 	/s/    MICAHEL L. ESKEW        
	 Joseph R. Moderow
 Secretary
	 	 	 	 Michael L. Eskew
 Chairman


  

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