Central States, Southeast and Southwest Areas Pension Plan

Item #30 

Does the application indicate whether the plan is a plan described in § 432(e)(9)(D)(vii)(III) and, 

if so, how is that fact reflected in the proposed benefit suspension. 

See section 6.07. 

Central States is a plan described in § 432(e)(9)(D)(vii)(III). The benefit suspension plan reflects 

this fact by applying different formulas and suspension caps to calculate the suspension for each 

of the categories of benefits or “tiers” described in subparts (I)-(III) of that statutory provision. A 

description of these differences is included under Sections 2.02 (Item #2) and 4.04 (Item #13) of 

this application.

Also attached are the following document numbers: 

30.1 2002-2008 Relevant excerpts from UPS Master Agreement & Riders

30.2 2007-2013 Relevant excerpts from UPS Master Agreement & Riders

30.3 2013-2018 Relevant excerpts from UPS Master Agreement & Riders

30.4 Relevant excerpts from UPS-IBT Full-Time Employee Pension Plan

30.5 Spin-Off and Withdrawal Liability Agreement and Release

30.0
30.1.1
30.1.2
30.1.3
30.1.4
30.1.5
30.1.6
30.1.7
30.1.8
30.1.9
30.1.10
30.1.11
30.1.12
30.1.13
30.1.14
30.1.15
30.1.16
30.1.17
30.1.18
30.1.19
30.1.20
30.1.21
30.1.22
30.1.23
30.1.24
30.1.25
30.1.26
30.1.27
30.1.28
30.1.29
30.1.30
30.1.31
30.1.32
30.1.33
30.1.34
30.1.35
30.1.36
30.1.37
30.1.38

NATIONAL MASTER 

UNITED PARCEL SERVICE AGREEMENT

For the Period:

December 19, 2007 through July 31, 2013

covering:

operations in, between and over all of the states, territories, and possessions of the United States and operations into and out of all contiguous territory. The UNITED PARCEL SERVICE, INC., an Ohio

Corporation, and a New York Corporation, in their Common Carrier

Operations hereinafter referred to as the “Employer,” and the

TEAMSTERS UNITED PARCEL SERVICE NATIONAL

NEGOTIATING COMMITTEE representing Local Unions affiliated with the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, and Local Union No. __________ which Local Union is

affiliated with the INTERNATIONAL BROTHERHOOD OF

TEAMSTERS, agree to be bound by the terms and conditions of

this Agreement. United Parcel Service Cartage Services, Inc.

(“CSI”) and UPS Latin America, Inc. are also a party to this

Agreement as specified in the Freight Pickup & Delivery

Supplemental Agreement (“P&D Supplement”) and Challenge Air

Cargo Supplement, respectively.

ARTICLE 1. PARTIES TO THE AGREEMENT

The Employer and the Union adopt this Article and enter into this

Agreement with a mutual intent of preserving and protecting work

and job opportunities for the employees covered by this Agreement.

No bargaining unit work will be subcontracted, transferred, leased,

assigned or conveyed except as provided in this Agreement.

Section 1. Operations Covered

The execution of this Agreement on the part of the Employer shall

cover all employees of the Employer in the bargaining unit at any

- 1 -

30.2.2
Upon the failure of the parties to agree within sixty (60) days, thereafter, the issue of an appropriate substitute shall be submitted to an

arbitrator for determination. The arbitrator’s decision shall be final

and binding.

ARTICLE 34. HEALTH & WELFARE AND

PENSION

Section 1. Health & Welfare and Pension Provisions

(a) Except as set forth in this Section, Health & Welfare and/or pension contributions shall be increased by forty dollars ($40.00) per

week on August 1, 2008 and on each subsequent August 1st during

the life of the contract. Where the employees are covered by both

Teamster Health & Welfare and Pension Funds in a Supplement,

Rider or Addendum, the weekly health & welfare and pension contributions shall be allocated by the respective Joint Supplemental

Area Negotiating Committees, subject to the approval of the Joint

National Negotiating Committee. In those Supplements, Riders or

Addenda, where some of the employees are covered by a Teamster

Health and Welfare Plan and some of the employees are covered by

the Company Health and Welfare Plan, the amount of money allocated to the Company Health and Welfare Plan shall be the same as

the amount allocated to the Teamster Health and Welfare Plan in the

Supplement, Rider or Addendum. The applicable Supplement,

Rider or Addendum will reflect the appropriate agreed-to increases

to the Teamster Pension Plans in those Supplements, Riders or

Addenda where all the employees are in the Company Health and

Welfare Plan and/or covered by Section (f) of this Article. Except as

set forth in Section (f) below, these increases shall be allocated as

follows: thirty-five cents ($0.35) per hour to Health and Welfare in

each year of the contract. The remainder of the contribution increase

each year will be paid into pension.

The Employer’s contribution increases to the Central States

Southeast and Southwest Areas Health & Welfare Fund (CSH&W

Fund) shall be increased twenty-two dollars ($22.00) per week

effective August 1, 2008 and fourteen dollars ($14.00) per week

effective on each August 1 thereafter during the life of this contract.

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ARTICLE 33 

30.2.3
It is the intent of the Employer and the Union that health & welfare

and pension monies will be allocated in a manner to keep wage

increases uniform. The increases accrued under this Article on

August 1st, of each year, can only be allocated to health & welfare

and/or pension except as provided within this Article. Any dispute

concerning the allocation of health & welfare and pension money

shall be determined and/or resolved by the Joint National

Negotiating Committee.

If, in accordance with a duly adopted funding improvement plan or

rehabilitation plan, an IBT Pension Fund is required to issue a

schedule pursuant to ERISA Section 305 (added by the Pension

Protection Act of 2006) that requires contributions in excess of

those contained within this Article, the Union and the Employer

shall promptly meet to negotiate changes in the Agreement to generate sufficient savings to cover the cost of the increased contributions. Agreement shall not be unreasonably withheld. Once completed, the applicable Fund shall be obligated to accept the schedule

as if it was the beginning of the term of a new labor agreement.

(b) Monthly, daily and hourly health & welfare and pension contributions shall be converted from the weekly rate increases in

accordance with past practice.

(c) During the life of this Agreement, the Employer will continue

to make applicable contributions to all IBT Health and Welfare

Funds and all IBT Pension Funds (or the successor funds in case of

merger of funds) for full-time and/or part-time employees in all

Supplements, Riders and Addenda where the Employer was making

contributions for full-time and/or part-time employees on May 1,

1982, unless stated to the contrary in this Article or changes placing

these employees in UPS plans are negotiated and agreed to by the

National Negotiating Committee.

(d) In those Supplements, Riders and Addenda where the Employer

was providing health & welfare and/or pension benefit coverage to

employees (either full-time or part-time) on May 1, 1982, the

Employer will continue to provide health & welfare and/or pension

benefit coverage under the Company plan(s), with funding under

the related trust(s) established by the Employer for this purpose, for

- 78 -

ARTICLE 34

30.2.4
the life of this Agreement unless specified otherwise in the applicable Supplemental Agreement, Rider, Addendum or this Article.

(e) All contractual provisions relating to health & welfare and pensions shall be provided in the respective Supplemental Agreements,

Riders and Addenda.

(f) The agreements on Maintenance of Benefits for Teamster

Health and Welfare Plans in the Western Conference of Teamsters

Supplemental Agreement and in the Northern California

Supplement Agreement shall continue in full force and effect during the life of this Agreement. The increase in the Northern

California Supplemental Agreement shall be allocated as follows:

fifty cents ($0.50) per hour to Health and Welfare in each year of the

contract. The remainder of the contribution increase set forth in

Section 1.(a) each year will be paid into pension. 

(g) The Employer shall not be required to contribute to any jointly

trusteed health and welfare plan, consistent with the practices and

rules and regulations of such plan in effect as of August 1, 2008 an

amount greater than the amount it contributed on July 31, 2008 plus

the increases required by this Master Agreement, except as may be

required by law notwithstanding any language to the contrary in any

Trust Agreement, Participation Agreement or similar document.

The only exception to the above is the Maintenance of Benefits provision in paragraph (f) above.

(h) In the event that national health care legislation is enacted, the

parties agree to meet and discuss any ramifications of that legislation on the provisions of this Article.

(i) UPS Part-time Pension Plan

(1) The UPS Pension Plan will be improved to provide monthly

benefits for part-time employees not covered by Teamster Pension

Plans as follows: The benefit formula in the UPS Pension Plan for

current or future part-time employees who are participants will be

increased effective August 1, 2004 to fifty-five dollars ($55.00) for

each year of past and future Credited Service to a maximum of thirty-five (35) years of Credited Service. The benefit formula in the

- 79 -

ARTICLE 34 

30.2.5
UPS Pension Plan for current or future part-time employees who are

participants will be increased solely for purposes of the monthly

accrued benefit, effective August 1, 2008 to sixty dollars ($60.00)

for each year of future Credited Service to a maximum of 35 years

of Credited Service. If a participant is in Covered Employment on

August 1, 2008, he/she shall receive the sixty dollars ($60.00) benefit formula for the entire 2008 plan year.

The total monthly service pension benefit will be equal to the following provided the employee meets the Credited Service requirement.

$1,925 for retirement at any age after 35 years of part-time Credited Service

$1,650 for retirement at any age after 30 years of part-time Credited Service 

$1,375 for retirement at age 60 with 25 years of part-time Credited Service 

$1,125 for retirement at any age with 25 years of part-time Credited Service

(based on $45.00 per year of Credited Service)

(2) Part-time employees will receive one (1) year of Credited

Service for seven hundred fifty (750) or more paid hours. (Six (6)

months of part-time Credited Service will be granted for three hundred seventy-five (375) to five hundred (500) hours worked in a calendar year, and nine (9) months of part-time Credited Service will

be granted for five hundred one (501) to seven hundred forty-nine

(749) hours worked in a calendar year.) This paragraph will also be

applied to determine Credited Service for all full-time employees

on the payroll on August 1, 2002 who were formerly participants in

the UPS Pension Plan.

(3) The Employer will be responsible for funding the UPS Pension

Plan as required to provide the benefits described above and will be

responsible for maintaining the plan.

(4) The UPS Pension Plan will be governed by the terms of the

Plan document.

(5) Effective August 1, 2002, the Employer will grant additional

years of Credited Service in accordance with the terms of the Plan

to all full-time and part-time employees on the payroll on August 1,

2002, who worked for UPS after they were twenty-one (21) but

- 80 -

ARTICLE 34

30.2.6
were denied Credited Service solely because the UPS Pension Plan

required that an employee be age twenty-five (25) or older to participate in the UPS Pension Plan.

(6) For those multi-employer pension plans with which the UPS

Pension Plan does not have reciprocity, the UPS Pension Plan will

execute a mutually agreeable reciprocity agreement with those

plans.

(j) Long-Term Disability

(1) Full-time seniority employees will become eligible for longterm disability (LTD) after six (6) months of employment for nonoccupational illnesses or injuries that last longer than twenty-six

(26) weeks.

(2) Long-term disability benefits will equal sixty percent (60%) of

the employee’s base weekly pay to a maximum of six hundred dollars ($600) per week for up to five (5) years. Long-term disability

benefits begin when short-term disability coverage ends or after

twenty-six (26) weeks from date of disability, whichever is later.

(3) Average weekly base pay is computed by averaging paid hours

(maximum of forty (40) hours per week) each week during the last

full calendar quarter the employee worked and multiplying that by

the hourly rate of their base job. Weeks of unemployment in the

prior quarter will not be counted in the calculation. If there were

substantial weeks of unemployment, the prior full calendar quarter

may be used for the calculation.

(4) The definition of disability, termination of eligibility, offsets,

exclusions, limitations, claim procedures and any other related

issues will be controlled by the Summary Plan Description.

(5) The long-term disability coverage will become effective on

August 1, 2004 for eligible employees who become disabled after

that date. However, pre-existing conditions will not affect the

employee’s eligibility for LTD.

(6) In those situations where a Teamster Health and Welfare Fund pro-

- 81 -

ARTICLE 34 

30.2.7
vides a short term disability benefit, the employee receiving such benefit shall provide the UPS National LTD Plan sixty (60) days advance

notice of the estimated termination date of the short term disability. If

such notice is not provided, the UPS National LTD Plan shall have the

right to delay the commencement of LTD payments.

(7) Any employee receiving LTD benefits pursuant to this Plan shall

be entitled to receive health care coverage in accordance with the

SPD for up to twelve (12) months only.

(k) Part-time Retiree Coverage

(1) Effective August 1, 2002 the Employer will provide health insurance coverage to all part-time employees, not covered by a Union

plan, who retire on or after that date.

(2) To be eligible for the coverage, the part-time employee must (i)

not be eligible for Medicare; (ii) meet the same age and service

requirements as that of a full-time employee in the same

Supplement, Rider or Addendum and at a minimum, be at least

fifty-five (55) years of age with a minimum of twenty-five (25)

years of part-time service as defined in the UPS Pension Plan; (iii)

be covered as an active employee by a UPS-administered health

care plan for part-time employees at the time of retirement and; (iv)

not a part-time employee because of a voluntary bid to part-time

status in the five (5) years prior to retirement.

(3) A retiree’s legal spouse is also eligible for coverage if he or she

is not eligible for Medicare and is under age sixty-five (65).

(4) Coverage and benefit levels shall be as specified in the

Summary Plan Description.

(5) Eligibility for coverage for retiree and spouse begins on the first

(1st) day after the employee’s active coverage ends.

(6) The retired part-time employee will be required to make a contribution equal to the amount required by a retired full-time employee in the same Local Union. If there is no established rate the contribution will be two hundred dollars ($200.00) per month.

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ARTICLE 34

30.2.8
(I) Jointly Trusteed UPS/IBT Full-Time Pension Fund

The following provisions pertain to the UPS/IBT Full-Time

Employee Pension Plan (hereinafter “UPS/IBT Plan”) to be created

for employees who under the prior Agreement participated in the

Central States Southeast and Southwest Areas Pension Fund (“CS

Plan”) and for future employees who would have participated in the

CS Plan absent this agreement who have one hour of service in

Covered Employment on or after January 1, 2008.

(1)Effective January 1, 2008 the Employer and the Union will

establish a new, single employer, jointly trusteed and administered

defined benefit plan within the meaning of 29 U.S.C. Section 302

(c)(5) for full-time employees who under the prior agreement would

have participated in the CS Plan. As of December 26, 2007, the

Employer will cease to have an obligation to contribute to the CS

Plan and will have no other obligation to provide such employees

with future benefit accruals under the CS Plan.

(2) The benefit formula for current or future full-time employees

who are participants in the UPS/IBT Plan will be as set forth below

for each year of future service (hours worked in Covered

Employment on or after the effective date) up to a maximum of thirty-five (35) years of Credited Service (such limitation is only applicable to service pensions). This benefit is unreduced if payable at

Normal Retirement Age (age 65) and 5 years of vesting service or

at age 62 with 20 years of Credited Service. Benefit payments may

begin as early as Early Retirement Age (age 50 with five years of

vesting service) and are reduced 6% per year for each year and partial year prior to Normal Retirement Age. There shall be no reduction or change in the level of benefits described herein unless negotiated and agreed to by the Union.

Calendar Year Beginning Monthly Benefit

January 1, 2008 $132.00

January 1, 2009 $132.00

January 1, 2010 $135.50

January 1, 2011 $147.00

January 1, 2012 $158.50

January 1, 2013 $170.00

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ARTICLE 34 

30.2.9
(3) Eligible employees become participants on the first day of the

month coincident with or immediately following the date the employee completes one year of service with 750 hours of service (upon

becoming a participant, service credit will accrue beginning with the

very first hour of service that had been performed when the participant

began working in Covered Employment). Employees already participants in the CS Plan at the date this plan is established will be immediately eligible to participate in the UPS/IBT Plan. No benefits are

payable unless the participant has at least 5 years of vesting credit or

has reached Normal Retirement Age while an employee. One year of

vesting credit is earned for each calendar year in which the participant

works 750 or more hours. The Employer will grant vesting credit for

those employees employed by the Employer before the effective date

of the UPS/IBT Plan based on the employment records of the

Employer or records of the CS Plan.

(4) Full-time employees will receive one (1) year of Credited

Service for each 1801 paid hours in Covered Employment in a calendar year beginning on or after January 1, 2008. Employees will

receive partial years of Credited Service in monthly increments (i.e.,

one month if employee worked 150 or more hours in Covered

Employment in that month). For purposes of earning service credit

for the service pensions only, full-time employees will receive one

week of service credit if he has one hour of service in Covered

Employment. For service pensions only, if an employee has 0-19

weeks of service credit, he shall not receive any service credit for

that calendar year. If he has 20-39 weeks of service credit, the

amount of credit for that year will be equal to a fraction the numerator of which is the number of weeks of credit and the denominator

is 40. If the employee has 40 weeks of service credit for that calendar year, he shall receive one year of service credit.

(5) The Employer will be responsible for funding the UPS/IBT Plan

as required by applicable law.

(6) In addition to the normal benefit provided in paragraph (2)

above, there shall be a service benefit payable after twenty (20),

twenty-five (25), thirty (30) and thirty-five (35) years of full-time

service. There is a twenty (20) year benefit for anyone who has

reached age 50 and the amount will vary based on the person’s age.

- 84 -

ARTICLE 34

30.2.10
There is a twenty-five (25) year service retirement benefit for anyone who has twenty-five years of service regardless of age, which

shall be $2,000 per month if less than age 57 when benefits commence and $2,500 per month if at least 57 when benefits commence. The benefit for the thirty (30) year service retirement shall

be $3,000 per month regardless of the age of the retiring employee.

The benefit for thirty-five (35) years service retirement shall be

$3,500 per month regardless of the age of the retiring employee.

The plan document shall specify the amounts for the 20 year service pension, eligibility criteria and how the benefits are calculated.

Years of Service Age Monthly Service Pension

Pension Credit

35 years Any age $3,500

30 or more years Any age $3,000 plus $100/yr of service for years

over 30 up to $3,500

25 years Any Age $2,000

up to age 57 

25 Years 57 or older $2,500 plus $100/yr of service for years

over 25 up to $3,500 maximum

The UPS/IBT Plan will recognize full-time service in the CS Plan

for determining eligibility for the benefits in this section and will

offset at Normal Retirement Age the benefits accrued from the CS

Plan commencing at Normal Retirement Age. If the benefit paid

from the CS Plan is reduced as permitted or required by law, the

amount of such reduction shall not be included in this offset.

(7) The UPS/IBT Plan will also provide eligible employees with a

monthly disability benefit or lump sum disability benefit (based on

age and years of service).

(8) The UPS/IBT Plan will be governed by the terms of the plan

document and trust agreement, both of which are incorporated herein by reference. Any claims for benefits are subject to resolution

solely through the UPS/IBT Plan administrative claims process.

- 85 -

ARTICLE 34 

30.2.11

UNITED PARCEL SERVICE

ATLANTIC AREA

SUPPLEMENTAL AGREEMENT

For The Period

December 19, 2007 thru July 31, 2013

ATLANTIC AREA SUPPLEMENT

This Supplement to the National Master United Parcel Service

Agreement shall apply to all United Parcel Service employees

working in the classifications set forth in the Wage Schedule and

within the jurisdiction of Locals 22, 29, 61, 71, 171, 175, 322, 355,

391, 453, 505, 509, 639, 697, 822 and 992. Except as provided

herein, the provisions of the National Master UPS Agreement shall

prevail.

ARTICLE 46 - ACQUISITION OF SENIORITY

Section 1 

A new employee shall work under the provisions of this Agreement

but shall be employed only on a thirty (30) working day trial basis,

during which period he may be discharged without further recourse,

provided, however, that the Employer may not discharge or discipline for the purpose of evading this Agreement or discriminating

against Union members. After working thirty (30) days within a

ninety (90) consecutive day period, the employee shall be placed on

the regular seniority list and his seniority date shall be the first day

worked within any ninety (90) day period of his employment. He

shall be placed on the seniority list of the classification in which he

worked. In case of discipline within the probationary period, the

Employer shall notify the Local Union in writing.

- 167 -

30.2.13
employee’s regular starting time each day until he returns to his

Center or home. In addition, such an employee shall be furnished

clean, comfortable, sanitary lodgings, plus meals. The meal

allowance shall be ten dollars ($10.00) for breakfast, twelve dollars

($12.00) for lunch and fourteen dollars ($14.00) for supper. 

ARTICLE 60 - AIR-CONDITIONING

All new tractor trailer feeder equipment placed in service shall be

equipped with air-conditioning. 

Road tractors manufactured during the years 1974, 1975, 1976,

1977, shall be retrofitted with air-conditioning during a time schedule mutually agreed to with the Company and Local Unions. 

ARTICLE 61 - HEALTH AND WELFARE AND

PENSION

Section 1 - Local Union No. 992 Health and Welfare 

The Employer agrees to contribute to the Hagerstown Teamsters

and Motor Carriers Welfare Fund as follows:

Effective Per Employee 

August 1, 2007 $977.46 per month 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

The Trust Agreement covering the Hagerstown Teamsters and

Motor Carriers Welfare Fund shall be signed by the Employer and

become a part of this Agreement. 

- 213 -

30.2.14
If an employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall continue

to make the required contributions for the period of three (3)

months. If an employee is injured on the job, the Employer shall

continue to pay the required contributions until such employee

returns to work; however, such contributions shall not be paid for a

period of more than twelve (12) months. 

Action for delinquent contributions may be instituted by either the

Local Union, the Area Conference or the Trustees. Delinquent

Employer must also pay all attorneys’ fees and cost of collection. 

Pension 

The Employer agrees to continue contributions to the Hagerstown

Motor Carriers and Teamsters Pension Plan as follows:

Effective Per Employee 

August 1, 2007 $1170.73 per month 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

The Trust Agreement covering the Hagerstown Motor Carriers and

Teamsters Pension Plan shall be signed by the Employer and

become a part of this Agreement. 

If the employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall continue

to make the required contributions for a period of three (3) months.

If an employee is injured on the job, the Employer shall continue to

pay the required contributions until such employee returns to work;

- 214 -

30.2.15
however, such contributions shall not be paid for a period of more

than twelve (12) months. 

Action for delinquent contributions may be instituted by either the

Local Union, the Area Conference or the Trustees. Delinquent

Employer must also pay all attorneys’ fees and cost of collection.

Section 2 - Local Unions Nos. 61, 71, 391 and 509

Health and Welfare 

In the jurisdiction of the Local Unions party to this Agreement, the

Employer hereby agrees to contribute to the Central States,

Southeast and Southwest Areas Health and Welfare Fund the following schedule for each employee covered by this Agreement who

has been on the payroll thirty (30) days or more:

$237.70 per week.

(a) The Employer’s contribution increases to the Central States

Southeast and Southwest Areas Health & Welfare Fund (CSH&W

Fund) shall be increased twenty-two dollars ($22.00) per week

effective August 1, 2008 and fourteen dollars ($14.00) per week

effective on each August 1 thereafter during the life of this contract.

By the execution of this Agreement, the Employer authorizes the

Employer’s Associations which are parties hereto to enter into

appropriate health and welfare trust agreement necessary for the

administration of such Fund and to designate the Employer Trustees

under such agreement, hereby waiving all notice thereof and ratifying all actions already taken or to be taken by such Trustees within

the scope of their authority. 

If an employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall continue

to make the required contributions for a period of four (4) weeks. If

an employee is injured on the job, the Employer shall continue to

pay the required contributions until such employee returns to work;

however, such contributions shall not be paid for a period of more

than twelve (12) months. If an employee is granted a leave of

- 215 -

30.2.16
absence, the Employer shall collect from said employee, prior to the

leave of absence being effective, sufficient monies to pay the

required contributions into the health and welfare fund during the

period of absence.

There shall be no deductions from equipment rental of owner

operators by virtue of the contributions made to the health and welfare

fund, regardless of whether the equipment rental is at the minimum

rate or more and regardless of the manner of computation of ownerdriver compensation. Contributions to the health and welfare fund

must be made for each week on each regular or extra employee even

though such employee may work only part-time under the provisions

of this contract, including weeks where work is performed for the

Employer but not under the provisions of this contract, and although

contributions may be made for those weeks into some other health and

welfare fund. Employees who work either temporarily or in cases of

emergency under the terms of this contract shall not be covered by the

provisions of this paragraph. 

Notwithstanding anything herein contained, it is agreed that in the

event the Employer is delinquent at the end of a period in the payment of his contribution to the health and welfare or pension fund

or funds created under this Agreement, in accordance with the rules

and regulations of the Trustees of such funds, the employees or their

representatives, after the proper official of the Local Union shall

have given seventy-two (72) hour’s notice to the Employer of such

delinquency in health and welfare and pension payments, shall have

the right to take such action as they deem necessary until such delinquent payments are made and it is further agreed that in the event

such action is taken the Employer shall be responsible to the

employees for losses resulting therefrom.

Pension 

(b) Jointly Trusteed UPS/IBT Full Time Pension Fund: Locals

61, 71, 391, 509 and 697

The following provisions pertain to the UPS/IBT Full-Time

Employee Pension Plan (hereinafter “UPS/IBT Plan”) to be

created for employees who under the prior Agreement par-

- 216 -

30.2.17
ticipated in the Central States Southeast and Southwest

Pension Fund (“CS Plan”) and for future employees who

would have participated in the CS Plan absent this agreement who have one hour of service in Covered Employment

on or after January 1, 2008.

(1) Effective January 1, 2008 the Employer and the Union will

establish a new, single employer, jointly trusteed and administered defined benefit plan within the meaning of 29 U.S.C.

Section 302(c)(5) for full-time employees who under the

prior agreement would have participated in the CS Plan. As

of December 26, 2007, the Employer will cease to have an

obligation to contribute to the CS Plan and will have no

other obligation to provide such employees with future benefit accruals under the CS Plan.

(2) The benefit formula for current or future full-time employees who are participants in the UPS/IBT Plan will be as set

forth below for each year of future service (hours worked in

Covered Employment on or after the effective date) up to a

maximum of thirty-five (35) years of Credited Service (such

limitation is only applicable to service pensions). This benefit is unreduced if payable at Normal Retirement Age (age

65) and 5 years of vesting service or at age 62 with 20 years

of Credited Service. Benefit payments may begin as early

as Early Retirement Age (age 50 with five years of vesting

service) and are reduced 6% per year for each year and partial year prior to Normal Retirement Age. There shall be no

reduction or change in the level of benefits described herein

unless negotiated and agreed to by the Union.

Calendar Year Beginning Monthly Benefit

January 1, 2008 $132.00

January 1, 2009 $132.00

January 1, 2010 $135.50

January 1, 2011 $147.00

January 1, 2012 $158.50

January 1, 2013 $170.00

(3) Eligible employees become participants on the first day of

- 217 -

30.2.18
the month coincident with or immediately following the

date the employee completes one year of service with 750

hours of service (upon becoming a participant, service credit will accrue beginning with the very first hour of service

that had been performed when the participant began working in Covered Employment). Employees already participants in the CS Plan at the date this plan is established will

be immediately eligible to participate in the UPS/IBT Plan.

No benefits are payable unless the participant has at least 5

years of vesting credit or has reached Normal Retirement

Age while an employee. One (1) year of vesting credit is

earned for each calendar year in which the participant works

750 or more hours. The Employer will grant vesting credit

for those employees employed by the Employer before the

effective date of the UPS/IBT Plan based on the employment records of the Employer or records of the CS Plan.

(4) Full-time employees will receive one (1) year of Credited

Service for each 1801 paid hours in Covered Employment in

a calendar year beginning on or after January 1, 2008.

Employees will receive partial years of Credited Service in

monthly increments (i.e., one month if employee worked

150 or more hours in Covered Employment in that month).

For purposes of earning service credit for the service pensions only, full-time employees will receive one week of

service credit if he has one (1) hour of service in Covered

Employment. For service pensions only, if an employee has

0-19 weeks of service credit, he shall not receive any service credit for that calendar year. If he has 20-39 weeks of

service credit, the amount of credit for that year will be

equal to a fraction the numerator of which is the number of

weeks of credit and the denominator is 40. If the employee

has 40 weeks of service credit for that calendar year, he shall

receive one year of service credit.

(5) The Employer will be responsible for funding the UPS/IBT

Plan as required by applicable law.

(6) In addition to the normal benefit provided in paragraph (2)

- 218 -

30.2.19
above, there shall be a service benefit payable after twenty

(20), twenty-five (25), thirty (30) and thirty-five (35) years

of full-time service. There is a twenty (20) year benefit for

anyone who has reached age 50 and the amount will vary

based on the person’s age. There is a twenty-five (25) year

service retirement benefit for anyone who has twenty-five

years of service regardless of age, which shall be $2000 per

month if less than age 57 when benefits commence and

$2500 per month if at least age 57 when benefits commence.

The benefit for thirty (30) year service retirement shall be

$3000 per month regardless of the age of the retiring

employee. The benefit for thirty-five (35) years service

retirement shall be $3500 per month regardless of the age of

the retiring employee. The plan document shall specify the

amounts for the 20 year service pension, eligibility criteria

and how the benefits are calculated.

Years of service Age Monthly Service Pension

Pension Credit

35 years Any age $3,500

30 or more years Any age $3,000 plus $100/yr of service 

for years over 30 up to $3,500

25 years Any Age up to age 57 $2,000

25 years 57 or older $2,500 plus $100/yr of service

for years over 25 up to $3,500

maximum

The UPS/IBT Plan will recognize full-time service in the CS

Plan for determining eligibility for the benefits in this section and will offset at Normal Retirement Age the benefits

accrued from the CS Plan commencing at Normal

Retirement Age. If the benefit paid from the CS Plan is

reduced as permitted or required by law, the amount of such

reduction shall not be included in this offset.

- 219 -

30.2.20
(7) The UPS/IBT Plan will also provide eligible employees

with a monthly disability benefit or lump sum disability benefit (based on age and years of service).

(8) The UPS/IBT Plan will be governed by the terms of the plan

document and trust agreement, both of which are incorporated herein by reference. Any claims for benefits are subject

to resolution solely through the UPS/IBT Plan administrative claims process. 

(9) If an employee is absent because of illness or off-the-job

injury and notifies the Employer of such absence, the

Employer shall ensure that the employee is credited with up

to 190 hours of pension credit or four weeks of service pension credit (depending on the length of the absence). If an

employee is injured on the job, the Employer shall ensure

that the employee receives pension credit until such employee returns to work; however, such pension credit shall not

exceed 1801 hours of service or 40 weeks of service pension

credit (depending on the length of the absence).

Section 3 - Local Unions Nos. 22, 29, 171, 322 and

822 Health and Welfare 

(a) Effective August 1, 2007, the Employer shall contribute to

the Teamsters Joint Council No. 83 Health and Welfare Fund the

sum of $222.10 per week for each regular employee covered by this

Agreement who is domiciled in the jurisdiction of Local Unions

Nos. 22, 29, 171, 322 and 822. 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

(b) By the execution of this Agreement, the Employer agrees to

enter into appropriate trust agreements necessary for the administra-

- 220 -

30.2.21
tion of such fund, and to designate the Employer Trustees under

such agreement, hereby waiving all notice thereof and ratifying all

actions already taken or to be taken by such Trustees within the

scope of their authority. 

(c) If an employee is absent because of illness or off-the-job

injury and notifies the Employer of such absence, the Employer

shall continue to make the required contributions for a period of

four (4) weeks. If an employee is injured on the job, the Employer

shall continue to pay the required contributions until such employee returns to work; however, such contributions shall not be paid for

a period of more than twelve (12) months. 

(d) Contributions to the health and welfare fund must be made

for each week on each regular or laid off regular employee who

works at least one (1) day in that week under the provisions of this

Agreement, including weeks where work is performed for the

Employer but not under the provisions of this Agreement and

although contributions may be made for those weeks into some

other health and welfare fund. 

(e) When a leave of absence is granted, the employee shall state,

in writing, if he desires health and welfare coverage during the full

period of the leave of absence. If he elects not to make payments

direct to the trust office of the health and welfare fund, he shall have

no coverage during the full period of the leave of absence. 

If he elects in writing to be covered under the health and welfare

fund, he shall make contributions direct to the trust office of the

health and welfare fund weekly or monthly in accordance with the

rules of the Trustees beginning with his leave of absence during the

allowable period as provided by the rules of the Trustees. The

Employer shall send a copy of the leave of absence to the trust office

of the health and welfare fund as soon as it is granted. 

Pension Fund 

(f) Effective August 1, 2007, the Employer shall contribute to

Teamsters Joint Council No. 83 Pension Fund the sum of $273.60

per week for each regular employee covered by this Agreement who

- 221 -

30.2.22
is domiciled in the jurisdiction of Local Unions Nos. 22, 29, 171,

322 and 822.

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

(g) By the execution of this Agreement, the Employer agrees to

enter into appropriate trust agreements necessary for the administration of such fund, and to designate the Employer Trustees under

such agreement, hereby waiving all notice thereof and ratifying all

actions already taken or to be taken by such Trustees within the

scope of their authority. 

(h) If an employee is absent because of illness or off-the-job

injury and notifies the Employer of such absence, the Employer

shall continue to make the required contributions for a period of

four (4) weeks. If an employee is injured on the job, the Employer

shall continue to pay the required contributions until such employee returns to work; however, such contributions shall not be paid for

a period of more than twelve (12) months. 

(i) Contributions to the pension fund must be made for each

week on each regular or laid off employee who works at least one

(1) day in that week under the provisions of this Agreement, including weeks where work is performed for the Employer but not under

the provisions of this Agreement and although contributions may be

made for those weeks into some other pension fund.

Employees who work either temporarily or in cases of emergency

under the terms of this Agreement shall not be covered by the provisions of this paragraph. 

- 222 -

30.2.23
Section 4 - Local Union No. 639 Health and Welfare 

Effective August 1, 2007 the Employer shall contribute to the

Teamsters 639 Employers Health Trust Fund the sum of $4.72 per

hour for each hour worked by each employee. 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

By the execution of this Agreement, the Employer, party to this

Agreement, agrees to enter into appropriate trust agreements necessary for the administration of such fund and to designate the

Employer Trustees under such agreement, hereby waiving all notice

thereof and ratifying all actions already taken or to be taken by such

trustees within the scope of their authority. 

If a regular full-time employee is absent because of illness or off

the-job injury and notifies the Employer of such absence, the

Employer shall continue to make the required contributions on the

basis of a forty (40) hour week for a period of four (4) weeks. If a

regular full-time employee is injured on the job, the Employer shall

continue to pay the required contributions until such employee

returns to work; however, such contributions shall not be paid for a

period of more than twelve (12) months. If a regular full time

employee is granted a leave of absence the Employer shall collect

from said employee, prior to the leave of absence being effective,

sufficient monies to pay the required contributions into the health

and welfare fund during the period of absence.

There shall be no deduction from equipment rental of owner operators by virtue of the contributions made to the health and welfare

fund, regardless of whether the equipment rental is at the minimum

- 223 -

30.2.24
rate or more and regardless of the manner of computation of ownerdriver compensation. 

Contributions to the health and welfare fund must be made in accordance with each Trust Agreement on each regular or extra employee, even though such employee may work only part-time under the

provisions of this contract, including weeks where work is performed for the Employer but not under the provisions of this contract and although contributions may be made for those weeks into

some other health and welfare fund. 

The Employer shall continue to make payments to the health and

welfare fund of Drivers, Chauffeurs and Helpers, Local 639, for the

life of this Agreement. 

Pension 

Effective August 1, 2007, the Employer shall contribute to the

Teamsters 639-Employers Pension Trust Fund the sum of $307.00

per week on each regular full time employee. 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

There shall be no other Pension Funds under this contract for operations under this contract. 

By the execution of this Agreement, the Employer party to this

Agreement agrees to enter into appropriate trust agreements necessary for the administration of such funds and to designate the

Employer Trustees under such agreement, hereby waiving all notice

thereof and ratifying all actions already taken or to be taken by such

- 224 -

30.2.25
Trustees within the scope of their authority. 

If a regular full-time employee is absent because of illness or off the

job injury and notifies the Employer of such absence, the Employer

shall continue to make the required contributions for a period of

four (4) weeks. If a regular full time employee is injured on the job,

the Employer shall continue to pay the required contributions until

such employee returns to work; however, such contributions shall

not be paid for a period of more than twelve (12) months. If a regular full time employee is granted a leave of absence, the Employer

shall collect from said employee prior to the leave of absence being

effective, sufficient monies to pay the required contributions into

the pension fund during the period of absence. 

There shall be no deduction from equipment rental of owner operators

by virtue of the contributions made to the pension fund, regardless of

whether the equipment rental is at the minimum rate or more and

regardless of the manner of computation of owner driver compensation. 

Contributions to the pension fund must be made for each week on

each regular or extra employee, even though such employee may

work only part-time under the provisions of this contract, including

weeks where work is performed for the Employer but not under the

provisions of this contract, and although contributions may be made

for those weeks into some other pension fund.

Section 5 - Local Union No. 453-Health and Welfare 

The Employer agrees to contribute to the Western Pennsylvania

Teamsters and Employers Welfare Fund, as follows:

Effective Per Employee 

August 1, 2007 $1043.77 per month 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

- 225 -

30.2.26
Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

The Trust Agreement covering the Western Pennsylvania Teamsters

and Employers Welfare Fund shall be signed by the Employer and

become a part of this Agreement. 

If an employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall continue

to make the required contribution for a period of three (3) months.

If an employee is injured on the job, the Employer shall continue to

pay the required contributions until such employee returns to work;

however, such contributions shall not be paid for a period of more

than twelve (12) months. Action for delinquent contributions may

be instituted by either the Local Union, the Area Conference or the

Trustees. Delinquent Employer must also pay all attorneys’ fees and

cost of collection. 

Pension 

The Employer agrees to continue contributions to the Southwestern

Pennsylvania and Western Maryland Area Teamsters and

Employers Pension Fund as follows:

Effective Per Employee 

August 1, 2007 $1128.74 per month 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

The Trust Agreement covering the Southwestern Pennsylvania and

- 226 -

30.2.27
Western Maryland Area Teamsters and Employers Pension Fund shall

be signed by the Employer and become a part of this Agreement. 

If the employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall continue

to make the required contributions for a period of three (3) months.

If an employee is injured on the job, the Employer shall continue to

pay the required contributions until such employee returns to work;

however, such contributions shall not be paid for a period of more

than twelve (12) months. 

Action for delinquent contributions may be instituted by either the

Local Union, the Area Conference or the Trustees. Delinquent

Employer must also pay the attorneys’ fees and cost of collection. 

Section 6 - Local Union No. 697 Health and Welfare 

Health and Welfare benefits will be provided under Teamster/

United Parcel Service Joint Council 40 Health Care Package. The

employee covered as well as the nature and amount of said benefits

will be as outlined in the booklet entitled, “United Parcel Service

Health Care Package”, which is incorporated herein by reference. 

Effective, August 1, 2002, Health and Welfare benefits will be provided for retirees who retire after the date of ratification under the

“Teamster/United Parcel Service Joint Council 40 Health Care

Package” which will provide a $500,000 maximum lifetime benefit

as outlined in the Plan. There will be a fifty dollar ($50.00) per

month co-payment required for each retiree to participate in the

Plan. The employee eligible to be covered as well as the nature and

amount of said benefits will be as outlined in the booklet,

“Teamster/United Parcel Service Health Care Package.”

The Employer will evaluate a number of alternative procedures for

full-time employees and retirees including, pre-certification and utilization reviews, managed care, health care provider contracting and

other various programs. At such time that the Company implements

those procedures or programs deemed necessary to continue quality health care service in a cost effective manner, the plan booklet,

“Teamster/United Parcel Service Joint Council 40 Health Care

- 227 -

30.2.28
Package” shall become null and void for those affected employees.

The employees covered under the new plan as well as the nature and

amount of said benefits will be outlined in the new plan documents

and will reflect the appropriate changes. 

Section 7 - Local Unions Nos. 175 and 505 Health

and Welfare 

Effective August 1, 2007, the Employer agrees to contribute the sum

of $999.68 per month to the Employer-Teamsters Local Union Nos.

175 and 505 Health and Welfare Fund for all regular employees

covered by this Agreement and on the payroll of the Employer for

thirty (30) days or more for an insurance program to be administered jointly by the Employer and Unions in compliance with all

applicable State and Federal laws and regulations. Premiums shall

be paid on every qualified employee who has worked thirty (30) or

more days and is on the seniority list, provided such employee shall

work five (5) days per month or is on paid vacation. If an employee is injured on the job, the Employer shall continue to pay the

required contributions until such employee returns to work; however, such contributions need not be paid for a period of more than

twelve (12) months. 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

If an employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall continue

to make the required contributions for a period of four (4) weeks. 

If an employee is granted a leave of absence, the Employer shall

collect from said employee, prior to the leave of absence being

- 228 -

30.2.29
effective, sufficient monies to pay the required contributions to the

health and welfare fund during the period of absence. 

Contributions to the Employer-Teamsters Local Union Nos. 175 and

505 Health and Welfare Fund must be made monthly on each regular

employee as provided herein; however, if the employee is covered

under another fund by Union contract, the Employer shall not be

required to pay twice on the same employee for the same month. 

Pension 

Effective August 1, 2007, the Employer agrees to contribute the sum

of $1148.35 per month to the Employer-Teamsters Local Union

Nos. 175 and 505 Pension Fund for all regular employees covered

by this Agreement who have been on the payroll thirty (30) days or

more for a pension program to be administered jointly by the

Employer and Unions in compliance with all applicable State and

Federal Laws and regulations. Premiums shall be paid on every

qualified employee who has worked thirty (30) days or more and is

on the seniority list provided such employee shall work five (5) days

per month or is on paid vacation. 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

Compliance with this provision shall supersede the Employer’s

obligation to the Union to continue any like program provided at

this time by the Employer for employees covered by this

Agreement, further provided that no employee shall forfeit his

accrued interest in any pension or bonus plan in which he is participating now or at the time this Article becomes effective. There

- 229 -

30.2.30
shall be no other pension fund under this Agreement for operations

under this Agreement. 

If an employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall continue

to make the required contributions for a period of four (4) weeks. 

If an employee is injured on the job, the Employer shall continue to

pay the required contributions until such employee returns to work;

however, such contributions need not be paid for a period of more than

twelve (12) months. If an employee is granted a leave of absence, the

Employer shall collect from said employee, prior to the leave of

absence being effective, sufficient monies to pay the required contributions into the pension fund during the period of absence. 

Contributions to the Employer-Teamsters Local Union Nos. 175

and 505 Pension Fund must be made monthly on each regular

employee as provided herein; however, if the employee is covered

under another fund by Union contract, the Employer shall not be

required to pay twice on the same employee for the same month. 

By the execution of this Agreement, the Employer authorizes the

Employers’ Associations which are parties hereto to enter into

appropriate trust agreements necessary for the administration of

such fund, and to designate the Employer Trustees under such

agreement, hereby waiving all notice thereof and ratifying all

actions already taken, or to be taken, by all such Trustees within the

scope of their authority.

Section 8 - Local Union No. 355 Health and Welfare

and Pension 

Effective August 1, 2007 the Employer shall continue to pay into

the health and welfare fund the amount of $2.22 per hour for each

straight time hour or fraction thereof paid to each employee covered

by this Agreement or by subsequent collective bargaining agreements between the parties hereto, up to but not in excess of fifty

(50) straight time hours in any one workweek in the case of each

employee. 

- 230 -

30.2.31
Effective August 1, 2007, the Employer shall contribute $132.40 per

week for each employee covered by this Agreement or subsequent

collective bargaining agreements who shall receive pay during that

week. Effective August 1, 2008, August 1, 2009, August 1, 2010,

August 1, 2011, August 1, 2012, increases to the health and welfare

fund shall be allocated to the above weekly contributions rate.

Should an increase allocated by the Joint National Negotiating

Committee be based on an hourly basis, said figure shall be multiplied by forty (40) hours and added appropriately to the weekly contribution rate. 

Effective August 1, 2007, the Employer agrees to pay into the pension

fund the amount of $6.91 per hour for each straight time hour or fraction thereof paid to each employee covered by this Agreement or by

subsequent collective bargaining agreements between the parties hereto, up to but not in excess of forty (40) straight time hours in any one

workweek in the case of each employee. 

It is understood that the Union shall determine during the life of this

Agreement whether to apply future increases to health and welfare

fund or pension fund. 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to the approval of the Joint

National Negotiating Committee.

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

Eastern Shore Teamsters - Health & Welfare 

Effective August 1, 2007, the Employer will contribute to the

Eastern Shore Teamsters Health and Welfare Fund, Salisbury,

Maryland, $5.95 per hour for each employee covered by this

Agreement, not to exceed forty (40) straight-time hours in any week

for each employee. 

- 231 -

30.2.32
Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Eastern Shore Teamsters - Pension 

Effective August 1, 2007, the Employer shall contribute to the

Eastern Shore Teamsters Pension Fund, Salisbury, Maryland, the

sum of $253.00 per week on each regular full time employee. 

Employer contributions to the Health and Welfare and Pension shall

be increased a total of one dollar ($1.00) per hour on August 1, 2008

and on each subsequent August 1st during the life of the contract.

Allocations shall be determined by the Joint Supplemental Area

Negotiating Committee, subject to approval of the Joint National

Negotiating Committee. 

Any dispute in the allocation of Health and Welfare and Pension

money shall be determined and/or resolved by the Joint National

United Parcel Service Negotiating Committee. 

There shall be no other Pension Funds under this contract for operations under this contract. 

By the execution of this Agreement, the Employer party to this

Agreement agrees to enter into appropriate trust agreements necessary for the administration of such funds and to designate the

Employer Trustees under such agreement, hereby waiving all notice

thereof and ratifying all actions already taken or to be taken by such

Trustees within the scope of their authority. 

If a regular full-time employee is absent because of illness or off

the-job injury and notifies the Employer of such absence, the

Employer shall continue to make the required contributions for a

period of four (4) weeks. 

If a regular full-time employee is injured on the job, the Employer

- 232 -

30.2.33
shall continue to pay the required contributions until such employee returns to work; however, such contributions shall not be paid for

a period of more than twelve (12) months. If a regular full-time

employee is granted a leave of absence, the Employer shall collect

from said employee, prior to the leave of absence being effective,

sufficient monies to pay the required contributions into the pension

fund during the period of absence. 

There shall be no deduction from equipment rental of owner operators by virtue of the contributions made to the pension fund, regardless of whether the equipment rental is at the minimum rate or more

and regardless of the manner of computation of owner driver compensation. 

Contributions to the pension fund must be made for each week on

each regular or extra employee, even though such employee may

work only part-time under the provisions of this contract, including

weeks where work is performed for the Employer but not under the

provisions of this contract, and although contributions may be made

for those weeks into some other pension fund. 

Section 9 

Disputes or questions of interpretation concerning the requirement

to make contributions on behalf of particular employees or classifications of employees must be submitted directly to the Conference

Joint Area Committee by either the Local Union or the Trustees. In

the event of such disputes or questions, the Company shall not be

deemed to be delinquent, while the matter is being considered, but

if the Conference Joint Area Committee, by majority vote, determines that contributions are required, the Company shall pay to the

Trust Fund the amounts due together with any other charges uniformly applicable to past due contributors. The Conference Joint

Area Committee may also determine whether the Company’s claim

was bona fide. In the event that the Conference Joint Area

Committee is deadlocked, the matter shall be resolved by the

National Grievance Committee. 

- 233 -

30.2.34

UNITED PARCEL SERVICE

The Central Region of Teamsters

Supplemental Agreement

For the Period beginning upon ratification

through July 31, 2013

The following Articles and/or Sections of this Central Region of

Teamsters Supplement shall supersede or be additions to the corresponding Articles and/or Sections of the National Master United

Parcel Service Agreement.

ARTICLE 1-PROBATIONARY

EMPLOYEES-SEASONAL EMPLOYEES

Section 1

(a) Probationary employees: a new employee shall work under the

provisions of this Agreement but shall be employed only on a thirty (30) working day trial basis, during which period he/she may be

discharged without further recourse; provided however, that the

Employer may not discharge or discipline for the purpose of evading this Agreement or discriminating against union members. After

working thirty (30) days within a ninety (90) consecutive day period, the employee shall be placed on the regular seniority list, and

his/her seniority date shall revert back to the first (1st) day of the

thirty (30) day period in which the employee gained seniority.

On days where the Employer has exhausted the air drivers list, preseniority drivers may be used for air and these days would not count

toward seniority. The Employer would be obligated to follow the

conditions outlined under Article 40, Section 1 of the Master

Agreement.

171

30.2.36
ARTICLE 14 -HEALTH & WELFARE 

AND PENSIONS

Section 1

Contribution increases to benefit plans covering members of Local

Unions 344, 135 and 688 shall be made in accordance with Article

34 of the National Master Agreement.

(a) The Employer’s contribution increases to the Central States

Southeast and Southwest Areas Health & Welfare Fund (CSH&W

Fund) shall be increased twenty-two dollars ($22.00) per week

effective August 1, 2008 and fourteen dollars ($14.00) per week

effective on each August 1 thereafter during the life of this contract.

(b) Jointly Trusteed UPS/IBT Full Time Pension Fund

The following provisions pertain to the UPS/IBT Full-Time

Employee Pension Plan (hereinafter “UPS/IBT Plan”) to be created

for employees who under the prior Agreement participated in the

Central States Southeast and Southwest Pension Fund (“CS Plan”)

and for future employees who would have participated in the CS

Plan absent this Agreement who have one hour of service in

Covered Employment on or after January 1, 2008.

(1) Effective January 1, 2008 the Employer and the Union will

establish a new, single employer, jointly trusteed and administered

defined benefit plan within the meaning of 29 U.S.C. Section

302(c)(5) for full-time employees who under the prior Agreement

would have participated in the CS Plan. As of December 26, 2007,

the Employer will cease to have an obligation to contribute to the

CS Plan and will have no other obligation to provide such employees with future benefit accruals under the CS Plan.

(2) The benefit formula for current or future full-time employees

who are participants in the UPS/IBT Plan will be as set forth below

for each year of future service (hours worked in Covered

Employment on or after the effective date) up to a maximum of thirty-five (35) years of Credited Service (such limitation is only appli203

30.2.37
cable to service pensions). This benefit is unreduced if payable at

Normal Retirement Age (age 65) and 5 years of vesting service or

at age 62 with 20 years of Credited Service. Benefit payments may

begin as early as Early Retirement Age (age 50 with five years of

vesting service) and are reduced 6% per year for each year and partial year prior to Normal Retirement Age. There shall be no reduction or change in the level of benefits described herein unless negotiated and agreed to by the Union.

Calendar Year Beginning Monthly Benefit

January 1, 2008 $132.00

January 1, 2009 $132.00

January 1, 2010 $135.50

January 1, 2011 $147.00

January 1, 2012 $158.50

January 1, 2013 $170.00

(3) Eligible employees become participants on the first day of the

month coincident with or immediately following the date the

employee completes one year of service with 750 hours of service

(upon becoming a participant, service credit will accrue beginning

with the very first hour of service that had been performed when the

participant began working in Covered Employment). Employees

already participants in the CS Plan at the date this plan is established will be immediately eligible to participate in the UPS/IBT

Plan. No benefits are payable unless the participant has at least 5

years of vesting credit or has reached Normal Retirement Age while

an employee. One year of vesting credit is earned for each calendar

year in which the participant works 750 or more hours. The

Employer will grant vesting credit for those employees employed

by the Employer before the effective date of the UPS/IBT Plan

based on the employment records of the Employer or records of the

CS Plan.

(4) Full-time employees will receive one (1) year of Credited

Service for each 1801 paid hours in Covered Employment in a calendar year beginning on or after January 1, 2008. Employees will

receive partial years of Credited Service in monthly increments (i.e.,

one month if employee worked 150 or more hours in Covered

Employment in that month). For purposes of earning service credit

204

30.2.38
for the service pensions only, full-time employees will receive one

week of service credit if he/she has one hour of service in Covered

Employment. For service pensions only, if an employee has 0-19

weeks of service credit, he/she shall not receive any service credit

for that calendar year. If he/she has 20-39 weeks of service credit,

the amount of credit for that year will be equal to a fraction the

numerator of which is the number of weeks of credit and the

denominator is 40. If the employee has 40 weeks of service credit

for that calendar year, he/she shall receive one year of service credit.

(5) The Employer will be responsible for funding the UPS/IBT Plan

as required by applicable law.

(6) In addition to the normal benefit provided in paragraph (2)

above, there shall be a service benefit payable after twenty (20),

twenty-five (25), thirty (30) and thirty-five (35) years of full-time

service. There is a twenty (20) year benefit for anyone who has

reached age 50 and the amount will vary based on the person’s age.

There is a twenty-five (25) year service retirement benefit for anyone who has twenty-five years of service regardless of age, which

shall be $2000 per month if less than age 57 when benefits commence and $2500 per month if at least age 57 when benefits commence. The benefit for thirty (30) year service retirement shall be

$3000 per month regardless of the age of the retiring employee. The

benefit for thirty-five (35) years service retirement shall be $3500

per month regardless of the age of the retiring employee. The plan

document shall specify the amounts for the 20 year service pension,

eligibility criteria and how the benefits are calculated. 

Years of service Age Monthly Service Pension

Pension Credit

35 years Any age $3,500

30 or more years Any age $3,000 plus $100/yr of service for years over 30 up to

$3,500

205

30.2.39
25 years Any Age 

up to age 57 $2,000

25 years 57 or older $2,500 plus $100/yr of service for years over 25 up to

$3,500 maximum

The UPS/IBT Plan will recognize full-time service in the CS Plan

for determining eligibility for the benefits in this section and will

offset at Normal Retirement Age the benefits accrued from the CS

Plan commencing at Normal Retirement Age. If the benefit paid

from the CS Plan is reduced as permitted or required by law, the

amount of such reduction shall not be included in this offset.

(7) The UPS/IBT Plan will also provide eligible employees with a

monthly disability benefit or lump sum disability benefit (based on

age and years of service).

(8) The UPS/IBT Plan will be governed by the terms of the plan

document and trust agreement, both of which are incorporated herein by reference. Any claims for benefits are subject to resolution

solely through the UPS/IBT Plan administrative claims process.

Section 2

The Employer shall provide pension benefit coverage to part-time

employees under the terms and conditions as may be contained in

the United Parcel Service Pension Plan as required by law.

Section 3

The Employer and the Union agree that they will undertake to

attempt to establish appropriate reciprocity agreements to protect

the pension rights of employees.

Section 4 Part-Time Medical Coverage

(a) If there are any part-time employees covered by a Teamster

Health and Welfare Fund they will continue to be covered by those

funds.

206

30.2.40

SOUTHERN REGION OF TEAMSTERS

AND

UNITED PARCEL SERVICE, INC.

SUPPLEMENTAL AGREEMENT

ARTICLE 46 – ACQUISITION OF SENIORITY

SECTION 1 – PROBATIONARY PERIOD 

A new employee shall work under the provisions of this Agreement

but shall be employed only on a thirty (30) working day trial basis,

during which period the employee may be discharged without further recourse, provided however, that the Employer may not discharge or discipline for the purpose of evading this Agreement or

discriminating against Union members. On the thirty-first (31st)

working day within one hundred and twenty (120) consecutive day

period, the employee shall be placed on the regular seniority list and

the employee’s seniority date shall be the first day worked within

the one hundred and twenty (120) day period.

SECTION 2 – SEASONAL EMPLOYEES 

No seasonal employee shall be hired prior to October 1st of each

Calendar year.

Any employee hired after October 1st shall not accrue days towards

seniority in the months of October, November and December.

Seasonal employees, when hired, shall be notified they are seasonal by signing a seasonal-employee notice.

The Employer and the Local Union will meet to review the possibility of utilizing present part-time employees to perform seasonal

work for the months of October, November and December.

- 167 -

30.2.42
funds, shall continue to make such payments for the life of this

Agreement.

In the event the Central States Southeast and Southwest Areas

Health and Welfare Fund does not maintain the benefit coverage and

retiree contribution rate for retiree insurance (including spousal

coverage) in effect on the date of ratification of this agreement, the

Union and the Employer shall meet to determine and agree if there

is a substitute multi-employer plan which will provide comparable

coverage. If mutual agreement is reached to provide a suitable plan,

the contribution payable by the Employer pursuant to Article 34

Section 1(a) shall be paid to the new plan.

PART-TIME EMPLOYEES 

(a) Effective January 1, 2008 Health and Welfare coverage for all

part-time employees on the payroll at that time and those hired

thereafter will be provided pursuant to the terms of an Employer

sponsored nationwide healthcare plan, namely, the UPS National

Health Plan for Part-time Employees. (A copy of the Summary Plan

Description will be provided.) Features of the Plan will include a

prescription card. This paragraph shall supersede any provisions on

the same subject in any Supplement, Rider or Addendum, including

those Supplemental provisions which require part-time benefits to

be equal to or the same as full time medical benefits.

(b) Notwithstanding any contrary provision in this Supplement or any

Rider or Addendum, individual health care coverage will be made

available to part-time employees hired after August 1, 2008 after

twelve (12) months of active employment and spousal or dependent

coverage will be made available to these part-time employees eighteen

(18) months after their initial date of employment.

ARTICLE 69 – PENSION

SECTION 1 – JOINTLY TRUSTEE UPS/IBT FULL

TIME PENSION FUND

The following provisions pertain to the UPS/IBT Full-Time

- 231 -

30.2.43
Employee Pension Plan (hereinafter “UPS/IBT Plan”) to be created

for employees who under the prior Agreement participated in the

Central States Southeast and Southwest Areas Pension Fund (“CS

Plan”) and for future employees who have participated in the CS

Plan absent this Agreement who have one (1) hour of service in

Covered Employment on or after January 1, 2008.

(1) Effective January 1, 2008, the Employer and the Union will

establish a new, single Employer, jointly trustee and administered

defined benefit plan within the meaning of 29 U.S.C. Section 302

(c) (5) for full time employees who under the prior agreement

would have participated in the CS Plan. As of December 26, 2007,

the Employer will cease to have an obligation to contribute to the

CS plan and will have no other obligation to provide such employees with future benefits accruals under the CS Plan.

(2) The benefit formula for current or future full time employees

who are participants in the UPS/IBT Plan will be set forth below for

each year of future service (hours worked in Covered Employment

on or after the effective date) up to a maximum of thirty-five (35)

years of Credited Service (such limitation is only applicable to service pensions). This benefit is unreduced if payable at Normal

Retirement Age (age 65) and 5 years of vesting service or at age 62

with twenty (20) years of credited service. Benefit payments may

begin as early as Early Retirement Age (age 50 with 5 years of vesting service) and are reduced 6% per year for each year and partial

year prior to Normal Retirement Age. There shall be no reduction

or change in the level of benefits described herein unless negotiated

and agreed to by the Union.

Calendar Year Beginning Monthly Benefit

January 1, 2008 $132.00

January 1, 2009 $132.00

January 1, 2010 $135.50

January 1, 2011 $147.00

January 1, 2012 $158.50

January 1, 2013 $170.00

(3) Eligible employees become participants on the first day of the

month coincident with or immediately following the date the

- 232 -

30.2.44
employee completes one (1) year of service with 750 hours of service (upon becoming a participant, service credit will accrue beginning with the very first hour of service that had been performed

when the participant began working in Covered Employment).

Employees already participants in the CS Plan at the date this Plan

is established will be immediately eligible to participate in the

UPS/IBT Plan. No benefits are payable unless the participant has at

least five (5) years of vesting credit or has reached Normal

Retirement Age while an employee. One (1) year of vesting credit

is earned for each calendar year in which the participant works 750

or more hours. The Employer will grant vesting credit for those

employees employed by the Employer before the effective date of

the UPS/IBT Plan based on the employment records of the

Employer or records of the CS Plan.

(4) Full-time employees will receive one (1) year of Credited

Service for each 1801 paid hours in Covered Employment in a calendar year beginning on or after January 1, 2008. Employees will

receive partial years of Credited Service in monthly increments (i.e.

one (1) month if employee worked 150 or more hours in Covered

Employment in that month). For purposes of earning service credit

for the service pensions only, full-time employees will receive one

(1) week of service credit if he has one (1) hour of service in

Covered Employment in that week. For service pension only, if an

employee has 0-19 weeks of service credit, he shall not receive any

service credit for that calendar year. If he has 20-39 weeks of service credit, the amount of credit for that year will be equal to a fraction the numerator of which is the number of weeks of credit and

the denominator is 40. If the employee has 40 weeks of service

credit for the calendar year, he shall receive one (1) year of service

credit.

(5) The Employer will be responsible for funding the UPS/IBT Plan

as required by applicable law.

(6) In addition to the normal benefit provided in paragraph (2)

above, there shall be a service benefit payable after twenty (20),

twenty-five (25), thirty (30) and thirty-five (35) years of full time

service. There is a twenty (20) year benefit for anyone who has

reached age 50 and the amount will vary based on the person’s age.

- 233 -

30.2.45
There is a twenty-five (25) year service retirement benefit for anyone who has twenty-five (25) years of service regardless of age,

which shall be $2,000 per month if less than age 57 when benefits

commence and $2,500 per month if at least 57 when benefits commence. The benefit for the thirty (30) year service retirement shall

be $3,000 per month regardless of the age of the retiring employee.

The benefit for thirty-five (35) years of service retirement shall be

$3,500 per month regardless of the age of the retiring employee.

The Plan Document shall specify the amounts for the twenty (20)

year service pension, eligibility criteria and how the benefits are calculated.

Years of Service Pension Credit Age Monthly Service Pension

35 Years Any Age $3,500

30 or More Years Any Age $3,000 plus $100/yr of service

for years over 30 up to $3,500

25 Years Any Age Up To 57 $2,000

25 Years 57 or Older $2,500 plus $100/yr of service

for years over 25 up to $3,500

maximum

The USP/IBT Plan will recognize full time service in the CS Plan

for determining eligibility for the benefits in this Section and will

offset at Normal Retirement Age the benefits accrued from the CS

Plan commencing at Normal Retirement Age. If the benefit paid

from the CS Plan is reduced as permitted or required by law, the

amount of such reduction shall not be included in this offset.

(7) The UPS/IBT Plan will also provide eligible employees with a

monthly disability benefit or lump sum disability benefit (based on

age and years of service).

(8) The UPS/IBT Plan will be governed by the terms of the Plan

Document and Trust Agreement, both of which are incorporated

herein by reference. Any claims for benefits are subject to resolu-

- 234 -

30.2.46
tion solely through the UPS/IBT Plan administrative claims

process.

If an employee is absent because of illness or off-the-job injury and

notifies the Employer of such absence, the Employer shall ensure

that the employee is credited with up to 190 hours of pension credit or four (4) weeks of service pension credit (depending on the

absence). If an employee is injured on the job, the Employer shall

ensure that the employee receives pension credit until such employee returns to work; however, such pension credit shall not exceed

1801 hours of service or 40 weeks of service pension credit

(depending on the length of the absence).

SECTION 2 

Effective January 1, 1977, the Employer shall provide Pension

Benefit Coverage to part-time employees under the terms and conditions as may be contained in the United Parcel Service Pension

Plan as required by law. Effective August 1, 2002 the Company and

Union agree that the part-time employees covered under the United

Parcel Service Plan will receive the following improvement to the

plan. 

(1) The UPS Pension Plan covering only part-time employees working in areas where part-time employees are not covered by

Teamsters Pension Plans, will be improved to provide monthly benefits for a part-time employee with seven hundred and fifty (750)

paid hours of credit service per year.

The total monthly service pension benefit will be equal to the following provided the employee meets the credit service requirements:

$1,925.00 for retirement at any age after 35 years of credited service.

$1,650.00 for retirement at any age after 30 years of credited service.

$1,375.00 for retirement at age 60 with 25 years of credited service.

$1,125.00 for retirement at any age with 25 years of credited service.

- 235 -

30.2.47
The monthly benefit formula under the UPS Pension Plan will be

listed in Article 34 Section 1 (g) (i) of the National Master United

Parcel Service Agreement.

$55.00 times part-time Credited Service years subject to a maximum 35 years service limit.

The benefit formula in the UPS Pension Plan for current or future

part-time employees who are participants will be increased solely

for the purpose of the monthly accrued benefit, effective August 1,

2008 to sixty dollars ($60.00) for each year of future Credited

Service to a maximum of thirty-five (35) years of Credited Service.

If a participant is in Covered Employment on August 1, 2008 he/she

shall receive the sixty dollar ($60.00) benefit formula for the entire

2008 plan year.

(2) Part-Time Employees will receive one (1) year of Credited

Service for 750 or more paid hours. Six months of Part-Time

Credited Service will be granted for 375 to 500 hours worked in a

calendar year, and 9 months of part-time Credited Service will be

granted for 501 to 749 hours worked in a calendar year.

(3) The Employer will be responsible for funding the UPS Pension

Plan as required to provide the benefits.

ARTICLE 70 – MECHANICS

Mechanical department employees shall have classification seniority within their Center and applications and provisions for seniority

shall be as stated below.

SECTION 1 – STARTING TIMES

(A) Full-time mechanics, in the order of their seniority within their

classification and by Center, shall have the right to select their starting times semi-annually from the schedule posted by the Employer. 

(B) Starting times for these employees shall be posted on the first

(1st) Monday in February and August and shall remain posted for

one (1) week before bidding. 

- 236 -

30.2.48



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