Document:

Amendment No. 32 to the UPS Retirement Plan

 Exhibit 10.2(28) 
  
 AMENDMENT NO. 32 
  
 TO THE 
  
 UPS RETIREMENT PLAN 
  
 WHEREAS, United Parcel Service of America, Inc. (“UPS”) and its affiliated corporations established the UPS Retirement Plan (“Plan”) for the benefit of its employees, in order to provide benefits
to those employees upon their retirement, disability, or death, effective as of September 1, 1961; and 
  
 WHEREAS, the Plan, as adopted and amended from time to time, was amended and restated in its entirety, effective as of January 1, 1976, to comply
with the Employee Retirement Income Security Act of 1974; and 
  
 WHEREAS, the Plan has been amended on a number of occasions since January 1, 1976, the most recent being Amendment No. 31; and 
  
 WHEREAS, Overnite Corporation became a wholly owned subsidiary of United Parcel Service, Inc. on August 5, 2005 pursuant to an agreement of merger
among United Parcel Service, Inc., Olympic Merger Sub, Inc. and Overnite Corporation dated as of May 25, 2005 (the “Merger”); and 
  
 WHEREAS, as a result of the Merger, UPS desires to merge the assets and liabilities of the Retirement Plan for Employees of Overnite Transportation
Company with and into the Plan effective as of 11:59 p.m. Eastern Standard Time on December 31, 2005. 
  
 NOW THEREFORE, pursuant to the authority vested in the Board of Directors by Section 7.1 of the Plan, the UPS Retirement Plan is hereby amended
effective as of 11:59 p.m. Eastern Standard Time on December 31, 2005, as follows: 
  
 1. The assets and liabilities of the Retirement Plan for Employees of Overnite Transportation Company shall be merged with and into the Plan effective as of 11:59 p.m. Eastern Standard Time on December 31, 2005. 
  
 2. By amending the second sentence of the first paragraph of § 7.3, Liquidation of
Trust Fund, by deleting the colon at the end of the sentence and inserting the following at the end of the sentence: 
  
 as modified by the provisions of IRS regulations 1.414(l)-1(f) or (h) if a special schedule of benefits (as defined in the regulations) is in effect
as a result of a plan merger within the five year period prior to the date of termination: 

 3. Appendix G, Employer Companies, is hereby amended to add Overnite Corporation and Overnite Transportation
Company to the list of Employer Companies with an effective date of January 1, 2006. 
  
 4. The Plan is hereby amended to add Appendix J to the Plan effective as of January 1, 2006. 
  
 5. Except as otherwise expressly amended herein, the Plan as in effect immediately before this Amendment 32 shall remain in full force and effect. 
  
 IN WITNESS WHEREOF, the undersigned certify that United Parcel Service of
America, Inc. based upon action by the Board of Directors on December 20th, 2005, has caused this Amendment No. 32 to be adopted. 
  

					
	ATTEST:	 	 	 	 UNITED PARCEL SERVICE
 OF AMERICA,
INC.

			
	/s/ Allen E. Hill	 	 	 	/s/ Michael L. Eskew
	 Allen E. Hill
 Secretary
	 	 	 	 Michael L. Eskew
 Chairman

  

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 EXECUTION COPY 
  
 UPS RETIREMENT PLAN 
  
 APPENDIX J 
  
 OVERNITE EMPLOYEE BENEFIT SCHEDULE 
 EFFECTIVE JANUARY 1, 2006

  
 The provisions of this Appendix J will apply only to that
period of employment during which an individual is an Overnite Employee (as defined below). 
  
 Except as expressly provided in this Appendix J, an Overnite Employee shall not accrue benefits under any other provisions of this Plan during the period he or she is an Overnite Employee even if such Overnite
Employee is performing services for an employer other than Overnite Corporation or Overnite Transportation Company. Except to the extent expressly provided otherwise in Section 5.3 of this Appendix J, Form of Benefit Payment, an Overnite
Employee is entitled to benefits under the Plan for any period before he or she became an Overnite Employee or for any period after he or she ceases to be an Overnite Employee, such benefits, if any, will be determined under Plan provisions other
than this Appendix J. 
  
 References to Articles and
Sections are to Articles and Sections of this Appendix J unless otherwise expressly indicated. This Appendix J is effective for Plan Years beginning on and after January 1, 2006. 
  
 ARTICLE I 
 DEFINITIONS 
  
 Wherever used herein or in the main text of the Plan with respect to an Overnite Employee, the following capitalized terms shall have the meaning set forth below unless otherwise clearly required by the
context. If a capitalized term used in this Appendix J or in the main text of the Plan, is not defined herein it will have the same meaning assigned to such term in the main text of the Plan. 
  
 SECTION 1.1. - “Accrued Benefit” means the monthly
amount of an Overnite Participant’s benefit as determined in Section 5.2(a) payable on his or her Normal Retirement Date in the Normal Form described in Section 5.3(c)(2) of the main text of the Plan (single life annuity). 

 
 SECTION 1.2. - “Active Participant” means as of
any point in time, an Overnite Participant who is or was eligible to accrue a benefits at that time under either the Overnite Plan or this Appendix J, as applicable. 
  
 SECTION 1.3. - “Actuarial Equivalent” means for purposes of determining the benefit payable in an
optional form of benefit as of an Annuity Starting Date occurring on or after January 1, 2006 (other than the Present Value of a benefit as described in Section 1.1 (hh) of the main text of the Plan) (an “Optional Form”), a
benefit having in the aggregate equality in value 

  

 1 

 
to the amounts expected to be received under the Normal Form of benefit payment for a single Participant based on the following factors: 
  
 (a) For a Grandfathered Overnite Participant, 
  
 (1) with respect to an Optional Form other than a Single Life
Annuity with 120 Month Guarantee (as described in Section 5.3(f) of the main text of the Plan), the factors described in (i) or (ii), whichever produces the greater benefit, where (i) is the factors described in Section 1.1(v)(1)
of the main text of the Plan and (ii) is an interest rate of 7% and the Unisex Pension 1984 Mortality Table; and 
  
 (2) with respect to the Single Life Annuity with 120 Month Guarantee, the factors described in Section 1.1(v)(1) of the main text of
the Plan; and 
  
 (b) For an Overnite Participant (other than a
Grandfathered Overnite Participant) with respect to any Optional Form, the factors described in Section 1.1(v)(1) of the main text of the Plan. 
  
 SECTION 1.4. - “Applicable Interest Rate” means the interest rate described in Section 1.1(ff) of the main text of the
Plan; provided, however, that for lump sum benefits paid to a Grandfathered Overnite Participant on or after January 1, 2006 and before January 1, 2007, the Applicable Interest Rate means the lesser of (a) the “applicable
interest rate” as described in Section 417(e)(3) of the Code for the November preceding the calendar year that includes the date the distribution is made or (b) the “applicable interest rate” as described in
Section 417(e)(3) of the Code for the month of August preceding the calendar year that includes the date the distribution is made. 
  
 SECTION 1.5. - “Applicable Mortality Table” means the “applicable mortality table” prescribed by the Secretary of the
Treasury for purposes of Section 417(e)(3) of the Code. 
  
 SECTION 1.6. - “Benefit Service” means the sum of: 
  
 (a) each full year of “credited service” completed on or before December 31, 2005; other than service that is disregarded under Section 9.02 of the Overnite Plan; 
  
 (b) for each Overnite Participant who completed at least one “hour of
service” during his or her “computation period” for “credited service” that began in 2005, one year of service; 
  
 (c) each year of Benefit Service as defined in the main text of the Plan completed after December 31, 2005. 
  
 For purposes of this Section 1.5 (a) and (b), the terms “credited
service,” “hour of service” and “computation period” shall have the same meaning as in the Overnite Plan. 
  
 SECTION 1.7. - “Compensation” means for purposes of determining Final Average Compensation for benefits the Annuity Starting
Date for which is on or after January 1, 2006, 
  

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 (a) for Plan Years beginning on or after January 1, 2006, “Compensation” as defined in the
main text of the Plan, and 
  
 (b) for Plan Years beginning prior
to January 1, 2006, Compensation means “Compensation” as defined in Treasury Regulation Section 1.415-2(d)(2) paid by Overnite or an “affiliated company” (as defined in Section 2.03 of the Overnite Plan) to an
Overnite Employee, including, any elective deferral (as defined in Section 402(g)(3) of the Code) and any elective contribution or elective deferral that is excluded from gross income under Sections 125, 132(f)(4), 414(v)(2) or 457 of the Code.
Notwithstanding the foregoing, Compensation shall exclude amounts described in (1)-(6) below: 
  
 (1) Contributions made by Overnite or an “affiliated company” to a plan of deferred compensation to the extent that, before the
application of Code section 415 limitations to that plan, the contributions are not includable in the gross income of the Overnite Employee for the taxable year in which contributed, as described in Treasury 1.415-2(d)(3)(i). 
  
 (2) Amounts realized from the exercise of a nonqualified
stock option, as described in Treasury Regulation Section 1.415-2(d)(3)(ii). 
  
 (3) Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option, as described in
Treasury Regulation Section 1.415-2(d)(3)(iii). 
  
 (4) Other amounts which receive special tax benefits, as described in Treasury Regulation Section 1.415-2(d)(3)(iv). 
  
 (5) Effective January 1, 2000, amounts paid from any plan of deferred compensation, including but not limited to the Executive
Incentive Premium Exchange Program of Union Pacific Corporation and its Subsidiaries. 
  
 (6) Amounts paid from the Union Pacific Corporation 2001 Long-Term Incentive Plan, amounts attributable to any forgiveness of a loan under
the Union Pacific Corporation Executive Stock Purchase Incentive Plan and any other amount payable for services performed or performance achieved for a period longer than one Plan Year. 
  
 SECTION 1.8. - “Disability Retirement Date” means for purposes of Section 5.4(a), the first
date prior to the earlier of an Overnite Participant’s Normal Retirement Date or July 1, 2006 on which he or she has suffered a Total Disability and he or she has had a Separation from Service due to such Total Disability; provided,
however, that an Overnite Participant shall not have a Disability Retirement Date for purposes of Section 5.4(a) unless, at the time his or her Total Disability occurs, he or she is an Active Participant and has completed 10 or more Years of
Vesting Service. 
  
 SECTION 1.9. - “Disabled
Participant” means an Overnite Participant described in Section 5.4. 
  

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 SECTION 1.10. - “Early Retirement Date” means the first day of any calendar
month coincident with or next following the attainment of 55 years of age and the completion of 10 Years of Vesting Service. 
  
 SECTION 1.11. - “Grandfathered Overnite Participant” means an Overnite Participant who was a participant in the Overnite Plan
on December 31, 2005. 
  
 SECTION 1.12.
- “Hour of Service” means for Plan Years beginning before 2006, an “hour of service” as described in Section 2.32 of the Overnite Plan and for Plan Years beginning on or after January 1, 2006, an “Hour
of Service” as described in Section 1.1(n) of the main text of the Plan. 
  
 SECTION 1.13. - “Normal Form” means the annuity benefit forms described in Section 5.3(a) of the main text of the Plan. 
  
 SECTION 1.14. - “Normal Retirement Age” means: 
  
 (a) For an Overnite Participant who participated in the Overnite Plan prior
to January 1, 2006, his or her 65th birthday; 
  
 (b) For an Overnite Participant who first becomes an Overnite Participant on or after January 1, 2006, the later of
(1) the Overnite Participant’s attainment of age 65 or (2) the Overnite Participant’s earning of five Years of Service or, if earlier, the fifth anniversary of his or her participation in this Plan. 
  
 SECTION 1.15. - “Normal Retirement Date” means the
first day of the calendar month coincident with or next following a Participant’s Normal Retirement Age. 
  
 SECTION 1.16. - “Overnite” means Overnite Corporation or Overnite Transportation Company. 
  
 SECTION 1.17. - “Overnite Early Retirement
Benefit” means the benefit described in Section 5.2(b). 
  
 SECTION 1.18. - “Overnite Employee” means (a) when used with reference to any Plan Year before 2006, a “covered employee” as defined in Section 2.16 of the Overnite Plan and (b) when used
with reference to any Plan Year beginning on or after January 1, 2006, an Employee (as defined in the main text of the Plan, without regard to the second paragraph of such definition) employed by Overnite who has an Hour of Service with
Overnite on or after January 1, 2006 and who is not a participant in or covered under any other qualified defined benefit plan to which Overnite currently makes contributions on his or her behalf. Under no circumstances will an individual who
performs services for Overnite, but who is not classified on the payroll as an employee of the Overnite, for example, an individual performing services for Overnite under a leasing arrangement, be treated as an Overnite Employee even if such
individual is treated as an employee of Overnite as a result of common law principles, co-employment principles or the leased employee rules under Section 414(n) of the Code. Further, if an individual performing services for Overnite is
retroactively reclassified as an employee of Overnite for any reason, such reclassified individual shall not be treated as an Overnite 

  

 4 

 
Employee eligible to participate in the Plan for any period prior to, on or after the date of such reclassification except as determined by the Trustees.
Further, the term “Overnite Employee” shall not include (1) any person while assigned to Overnite’s Special Services Division or OMC Logistics who either (i) first became an employee of Overnite on or after September 1,
2002, or (ii) has a Separation from Service and was re-employed as an Employee on or after September 1, 2002, without retaining credit for Years of Vesting Service and years of Benefit Service completed prior to such Separation from
Service and (2) any person classified as a “work at home customer service employee”. 
  
 SECTION 1.19. - “Overnite Participant” means depending on the context, an Overnite Employee who was a participant in the
Overnite Plan or has satisfied the participation requirements of Article II. 
  
 SECTION 1.20. - “Overnite Plan” means the Retirement Plan for Employees of Overnite Transportation Company as in effect on December 31, 2005. 
  
 SECTION 1.21. - “Separation from Service” means an
Overnite Employee’s death, retirement, resignation, discharge, or any other absence that causes him or her to cease to be an Employee. 
  
 SECTION 1.22. - “Total Disability” or “Totally Disabled” means: 
  
 (a) for the period beginning January 1, 2006 through, but not including,
July 1, 2006, a disability due to bodily injury or physical or mental disease which renders an Overnite Participant eligible for disability benefits under the federal Social Security Act. 
  
 (b) for periods on or after July 1, 2006 “totally disabled”
for purposes of the UPS Income Protection Plan, or a successor long term disability plan. 
  
 SECTION 1.23. - “Year of Vesting Service” means the sum of: 
  
 (a) each full year of “vesting service” completed on or before December 31, 2005, other than service that is disregarded under
Section 9.02 of the Overnite Plan; 
  
 (b) for each Overnite
Participant who completed at least one “hour of service” during his or her “computation period” for “vesting service” beginning in 2005, one year of service unless such service would be disregarded under
Section 6.2 of the main text of the Plan; and 
  
 (c) each
Year of Service as defined in the main text of the Plan completed after December 31, 2005, other than service that is disregarded under Section 6.2 of the main text of the Plan. 
  
 For purposes of this Section 1.22 (a) and (b), the terms “vesting service”, “hour of service” and
“computation period” shall have the same meaning as in the Overnite Plan. 
  

 5 

 ARTICLE II 
  
 ELIGIBILITY FOR PARTICIPATION 
  
 Section 2.1. Eligibility Requirements. Each Grandfathered Overnite Participant shall become an Overnite
Participant as of January 1, 2006. Each other Overnite Employee shall become an Overnite Participant in accordance with the eligibility requirements of Article II of the main text of the Plan on and after January 1, 2006, taking into
account his or her Hours of Service completed before and after January 1, 2006. 
  
 ARTICLE III 
  
 FUNDING

 [See Main Text of Plan] 
  
 ARTICLE IV 
  
 ELIGIBILITY FOR BENEFITS 
  
 Section 4.1. General. Sections 4.1 through 4.4 of Article IV of the main text of the Plan shall apply to all Overnite Participants, except references to Article V and to Section 5.2 shall be to
Article V and Section 5.2 of this Appendix J. Sections 4.5 through 4.7 shall not apply to any Overnite Participant who is determined to be Totally Disabled as of any date before July 1, 2006, but shall apply to any Overnite
Participant who is determined to be Totally Disabled as of any date on or after July 1, 2006. 
  

 6 

 ARTICLE V 
  

AMOUNT AND PAYMENT OF BENEFITS 
  
 Section 5.1. Benefits Limited by Plan Provisions in Effect. The benefit to which an Overnite Participant is entitled, and the form in which
such benefit will be paid, shall be determined by the provisions of this Appendix J. This Article V shall apply to Overnite Participants in lieu of Sections 5.1 (Benefits Limited by Plan Provisions in Effect; Retiree Benefit Increases), 5.2 (Benefit
Amounts), 5.2A (Formulas), 5.6 (Benefit Payments Under Other Plans and Programs), 5.7(a) (Minimum Benefit for Participation as of the Effective Date), 5.11 (Suspension of Benefits) and 5.14 (UPS Aviation Technologies, Inc. Employees) of the main
text of the Plan while he or she is an Overnite Employee. Section 5.4 of the main text of the Plan (Disability Benefit) shall not apply to any Overnite Participant who is determined to be Totally Disabled as of any date before July 1,
2006, but shall apply to any Overnite Participant who is determined to be Totally Disabled as of any date on or after July 1, 2006. Any benefit paid under this Appendix J shall be subject to Sections 5.7(b) (Maximum Benefits), 5.8 (Limitations
Regarding time of Payment of Benefits), 5.9 (Designation of Beneficiary), 5.10 (Final Payment to Participant or Beneficiary), 5.12 (Withholding of Income Tax) and 5.13 (Direct Rollover) of the main text of the Plan. 
  
 Section 5.2. Benefit Amounts. 
  
 (a) Normal Retirement Benefit. An Overnite Participant who has a
Separation from Service with all Employer Companies and Related Employers on his or her Normal Retirement Date, shall be entitled to receive his or her retirement benefit, as determined in paragraphs (1) and (2): 
  
 (1) Benefit Formula. Subject to paragraph (2), the
monthly benefit of an Overnite Participant shall equal one twelfth of the product of (i) multiplied by (ii), when (i) and (ii) equal: 
  
 (i) 1.725% of the Overnite Participant’s Final Average Compensation; and 
  
 (ii) the Overnite Participant’s years of Benefit Service
(to a maximum of 30 years) 
  
 (2) Minimum
Accrued Benefit. Notwithstanding any provision in this Appendix J to the contrary, but taking into account the break in service rules in Article IX of the Overnite Plan: 
  
 (i) the Accrued Benefit determined under paragraph (a)(1) above for an Overnite Participant who was an
Active Participant on December 31, 1988 shall not be less than his or her accrued benefit, determined as of December 31, 1988 under the terms of the Overnite Plan as in effect through December 31, 1988; 
  

 7 

 (ii) the Accrued Benefit determined under paragraph (a)(1) above for an Overnite
Participant who was an Active Participant on December 31, 1993 shall not be less than his or her accrued benefit, determined as of December 31, 1993 under the terms of the Overnite Plan as in effect through December 31, 1993
(including paragraph (2)(i) above); and 
  
 (iii) the Accrued Benefit of an Overnite Participant shall not be less than his or her “accrued benefit” determined as of December 31, 2005 under the terms of the Overnite Plan as if he or she had had a Separation from
Service on such date. 
  
 (b) Early Retirement Benefit.

  
 (1) Normal Commencement. An Overnite
Participant who Separates from Service with all Employer Companies and Related Employers on or after his or her earliest Early Retirement Date but before his or her Normal Retirement Date shall be entitled to begin receiving his or her Accrued
Benefit, determined as of such separation, as of his or her Normal Retirement Date. 
  
 (2) Early Commencement. An Overnite Participant who is eligible to receive his or her Accrued Benefit as described in
Section 5.2(b)(1) may elect to begin receiving such benefit at any Early Retirement Date after he or she Separates from Service, provided that the Accrued Benefit is reduced for early commencement in accordance with (A) through (C), as
follows: 
  
 (i) Except as provided in paragraph
(B) or (C) below, the Accrued Benefit payable to the Overnite Participant will be reduced in accordance with the following table: 
  

			
	 Age at Benefit Payment Date

	 	 Factor

	 55
	 	50%
	 56
	 	55%
	 57
	 	60%
	 58
	 	65%
	 59
	 	70%
	 60
	 	75%
	 61
	 	80%
	 62
	 	85%
	 63
	 	90%
	 64
	 	95%

  
 (Amounts in the table above shall be prorated on a monthly basis for fractions of a year.) 
  
 (ii) The Accrued Benefit payable to an Overnite Participant (i) whose Annuity Starting Date occurs on or after January 1, 1998
and (ii) who has attained at least age 55 and completed at least 30 years of Benefit Service as of his or her Annuity Starting Date shall not be reduced. 
  

 8 

 (iii) For an Overnite Participant (i) who completes at least one Hour of Service
either (I) in a position as an Overnite Employee, the terms and conditions of which are not subject to collective bargaining (a “Non-Represented Participant”), which occurs on or after December 1, 2000, or (II) in a position as
an Overnite Employee, the terms and conditions of which are subject to collective bargaining (a “Represented Participant”), which occurs on or after such date as this change is agreed to by the applicable collective bargaining
representative (the “Approval Date”), (ii) whose Annuity Starting Date occurs on or after January 1, 2001, (iii) who is not described in Section 5.2(b)(2)(B), and (iv) who has attained at least age 60 as of his or
her Separation from Service, the Accrued Benefit payable hereof: 
  
 (A) If the Overnite Participant described in Section 5.2(b)(2)(C) has completed at least 25 years of Benefit Service as of his or her Separation from Service, the Accrued Benefit shall not be reduced; or

  
 (B) If the Overnite Participant described in
Section 5.2(b)(2)(C) has not completed at least 25 years of Benefit Service as of his or her Separation from Service, the Accrued Benefit shall be reduced in accordance with the following table: 
  

			
	 Age at Benefit Payment Date

	 	 Factor

	 60
	 	85%
	 61
	 	88%
	 62
	 	91%
	 63
	 	94%
	 64
	 	97%

  
 (Amounts in the table above shall be prorated on a monthly basis for fractions of a year.) 
  
 Notwithstanding the above, if an Overnite Participant who is described in this Section 5.2(b)(2)(C) has at any time been a Represented Participant,
the following rules apply: 
  
 (A) If such
Overnite Participant’s Separation from Service occurs (I) when he or she is a Non-Represented Participant or (II) when he or she is a Represented Participant but on or after the Approval Date, the reduction, if any, described in
Section 5.2(b)(2)(C) shall apply to the 

  

 9 

 
Participant’s entire Accrued Benefit, including amounts earned before and after any transfer to a position as a Represented Participant. 
  
 (B) If the Overnite Participant’s Separation from
Service occurs when he or she is a Represented Participant but before the Approval Date, the benefit payable to the Overnite Participant shall equal the greater of (I) the benefit determined under this Section 5.2(b), including this
Section 5.2(b)(2)(C), based on the Accrued Benefit the Participant had earned under the Overnite Plan or this Appendix J as of the last day on which he or she was employed in a position described in (I) or (II) of subparagraph (i), above,
or (II) the benefit determined under this Section 5.2(b), excluding this Section 5.2(b)(2)(C), based on the Overnite Participant’s entire Accrued Benefit. 
  
 (c) Deferred Vested Benefit. 
  

(1) Normal Commencement. An Overnite Participant who has a Separation from Service with all Employer Companies and Related
Employers after he or she is fully vested in accordance with Article VI but before his or her Early Retirement Date will be entitled to begin receiving his or her Accrued Benefit, determined as of such separation, as of his or her Normal Retirement
Date. 
  
 (2) Early Commencement. An
Overnite Participant who is eligible to receive his or her Accrued Benefit as described in Section 5.2(c)(1) above and who has at least 10 Years of Vesting Service may commence such benefit as of the first day of any calendar month on or after
he or she has a Separation from Service with all Employer Companies and Related Employers and reaches age 55 but before his or her Normal Retirement Date, which benefit shall be determined as described in Section 5.2(b)(2). 
  
 (d) Postponed Retirement Benefit. An Overnite Participant who has a
Separation from Service with all Employer Companies and Related Employers after his or her Normal Retirement Date shall be entitled to his or her Accrued Benefit, determined as of such separation, as of the first day of the month following such
Separation from Service. 
  
 Section 5.3. Form of Benefit
Payment. 
  
 (a) Optional Forms. The Accrued Benefit
payable to an Overnite Participant will be paid in accordance with Section 5.3 of the main text of the Plan. In addition to the optional forms of benefit available under Section 5.3(f) of the main text of the Plan, a Grandfathered Overnite
Participant whose Annuity Starting Date is prior to his or her Normal Retirement Date may elect, as an optional form of benefit, a level income option, which shall be a benefit providing for the adjustment of the Participant’s Accrued Benefit
to produce, so far as practicable, a level combined pension from this Plan (based on his or her entire Accrued Benefit under the Plan and is not limited to the benefit accrued under this Appendix J) and the Participant’s Social Security
benefit (both before and after such Social Security benefit is payable). Notwithstanding the foregoing, disability benefits paid to a Disabled Participant under 

  

 10 

 
Section 5.4 may only be paid in the Qualified Joint and Survivor (Husband and Wife) Benefit, the Normal Form (single life annuity) or in a Joint and
Survivor Annuity with a 50% lifetime survivorship benefit. For purposes of applying Section 5.3 of the main text of the Plan, the terms Actuarial Equivalent and Applicable Interest Rate shall have the meaning assigned to such terms in this
Appendix J. 
  
 (b) Lump Sum Payment If an Overnite
Participant who had a Separation from Service with Overnite on or after March 28, 2005 but prior to January 1, 2006, such Overnite Participant may elect to receive his or her Accrued Benefit payable under Section 5.3 in a cash lump
sum as soon as practicable after his or her Separation from Service if the Present Value of such benefit is at least $1,000 but does not exceed $5,000. 
  
 Section 5.4. Disability Benefit. 
  
 (a) (1) Each Overnite Participant who has a Disability Retirement Date shall be entitled to an immediate disability benefit commencing on the first
day of the month coincident with or next following his or her Disability Retirement Date and ending on the date he or she ceases to be a Disabled Participant. Except to the extent the Disabled Participant is eligible for and elects to receive an
Early Retirement Benefit under Section 5.2(b) in the interim, no benefit shall be paid to a Disabled Participant under this Section 5.4 pending determination of the Total Disability by the Social Security Administration; provided, however,
that the first payment made to a Disabled Participant under this Section 5.4 following such determination of Total Disability shall include all amounts due the Disabled Participant for the period between the Disability Retirement Date and the
date of the first payment. 
  
 (2) A Disabled
Participant shall cease to be such if and when: 
  
 (i) he or she reaches Normal Retirement Date; 
  
 (ii) he or she ceases to suffer from Total Disability; or 
  
 (iii) he or she dies. 
  
 When a
Disabled Participant ceases to be such his or her current disability benefit (including any survivor benefit attributable to the elected form of payment) shall end, and (i) if he or she ceases to be a Disabled Participant because he or she
ceases to suffer from a Total Disability prior to his or her Normal Retirement Date, he or she shall be entitled to a benefit under the provisions of this Appendix J, applied on the basis of his or her Separation from Service due to his or her
Total Disability and determined using his or her Final Average Compensation and actual years of Benefit Service as of such separation date, (ii) if he or she ceases to be a Disabled Participant on his or her Normal Retirement Date, he or she
shall be entitled to the benefit described in Section 5.4(a)(4), or (iii) if he or she ceases to be a Disabled Participant due to his or her death, death benefits shall be payable to his or her surviving spouse, the monthly periodic
payments under which shall equal the amount which would be payable under the survivor benefit portion of the 

  

 11 

 
qualified joint and survivor annuity (as defined in the Overnite Plan), if the Overnite Participant had: 
  
 (i) a Separation from Service on the date of his or her death (and did not
thereafter return to service) or on the date of his or her actual Separation from Service, if earlier; 
  
 (ii) survived and retired with an immediate qualified joint and survivor annuity on the Annuity Starting Date elected by the spouse, and 
  
 (iii) died the following day. 
  
 (3) The immediate disability benefit payable to a Disabled
Participant pursuant to subsection (a) shall be an annual benefit, payable monthly equal to the Participant’s Accrued Benefit determined using his or her Final Average Compensation as of his or her Disability Retirement Date and the number
of years of Benefit Service (to a maximum of 30 years) the Participant would have had had he or she remained an Overnite Employee until his or her Normal Retirement Date, without reduction for early commencement. 
  
 (4) A Disabled Participant who ceases to be such solely
because he or she has reached his or her Normal Retirement Date shall be entitled to receive his or her Accrued Benefit determined using his or her Final Average Compensation as of his or her Disability Retirement Date and the number of years of
Benefit Service (to a maximum of 30 years) the Participant would have had had he remained an Overnite Employee until his or her Normal Retirement Date. 
  
 (b) Each Overnite Participant who is determined to be Totally Disabled as of any date on or after July 1, 2006 shall be eligible to receive the
disability retirement benefit described in Section 5.4 of the main text of the Plan. 
  
 Section 5.5 Qualified Joint and Survivor (Husband and Wife) Preretirement Survivor Benefit. Each vested Overnite Participant shall have the Qualified Joint and Survivor (Husband and Wife) Benefit as
described in Section 5.3 of the main text of the Plan effective for the benefit of his or her spouse so that if such Participant dies prior to his or her Annuity Starting Date his or her spouse will be entitled to receive a Preretirement
Survivor Benefit as described in Section 5.5 of the main text of the Plan based on his or her Accrued Benefit described in this Appendix J and determined without regard to Section 5.5(c) of the main text of the Plan. 
  
 Section 5.6 Benefit Payments Under Other Plans and Programs. The
benefits otherwise provided in this Appendix J and accrued after December 31, 2005 shall be reduced in the case of any Overnite Participant, Disabled Participant or beneficiary, by the amount of any benefits payable to such Overnite
Participant, Disabled Participant, or beneficiary under any other non-government pension or retirement plan or program to which contributions have been made by an Employer Company on behalf of such person or under which service with an Employer
Company is counted in calculating benefits, except the UPS Savings Plan and any 

  

 12 

 
other cash or deferred plan described in Section 401(k) of the Code or the UPS Qualified Stock Ownership Plan, to the extent that such benefits payable
under such other plan or program are based on a period of time included in the calculation of years of Benefit Service, for purposes of this Appendix J and are not attributable to contributions made to such other plan or program by the Overnite
Participant or Disabled Participant. 
  
 If a reduction in
benefits is also called for in another plan or plans sponsored and maintained by the Employer Company by reason of the benefits payable to a Overnite Participant under this Plan, the reduction in benefits shall be made only in the benefits payable
under the plan in which the Overnite Participant last participated, and if he or she participated in more than one such other plan, then the reduction shall be made in the reverse order of participation with no reduction in the benefits payable
under the plan in which the Overnite Participant or Disabled Participant first participated. 
  
 If the Overnite Participant receives one form of benefit under this Plan and another form of benefit under any such other plan, any reduction hereunder shall be based on actuarially equivalent forms of benefit.

  
 Section 5.11. Suspension of Benefits. If an
Overnite Participant entitled to receive a benefit should (1) return to employment or (2) remain in employment after attaining Normal Retirement Age, payment of benefits shall be suspended in accordance with the provisions of
Section 5.11 of the main text of the Plan. When the Overnite Participant is entitled to recommence benefits, his or her benefits shall be recalculated on the basis of Compensation earned and years of Benefit Service credited during such period
of reemployment or continued employment, and no actuarial or other adjustment shall be made to the Overnite Participant’s benefit so as to reflect payments so suspended. In addition, such resumed payment shall be offset by (i) any benefit
paid with respect to a month in which the Overnite Participant was in service described in Section 5.11(b) of the main text of the Plan where the amount so paid has not been returned or repaid to the Plan by such Overnite Participant and
(ii) the Actuarial Equivalent of any payments made to the Overnite Participant before his or her Normal Retirement Date. An Overnite Participant whose benefits have been suspended during a period of reemployment or continued employment shall be
entitled to elect the form of payment for his or her entire benefit, including amounts accrued both before and during reemployment, in accordance with Article 5.3. 
  
 ARTICLE VI 
 VESTING 
  
 Section 6.1. General. An
Overnite Participant shall be fully vested in his or her Overnite Benefit upon his or her Normal Retirement Date, as defined in this Appendix J, or upon completion of 5 Years of Vesting Service, otherwise the provisions of Article VI of
the main text of the Plan will apply. 
  

 13 

 ARTICLES VII -XI 
 MISCELLANEOUS 
  
 Section 13.1. General. The provisions of Article VII (Amendment, Modification and Termination; Merger), Article VIII (Investments), Article IX (Administrative Committee), Article X (General Provisions) (other than
Section 10.12 (Former Rollins Employees), and Article XI (Top-Heavy Provisions) of the main text of the Plan shall apply to Overnite Participants and the benefits accrued under this Appendix J. 
  
 ARTICLE XII 
 RETIREE MEDICAL BENEFITS 
  
 Section 12.1. General. Article XII of the main text of the Plan shall not apply to any Overnite Participant. 
  

 14Amendment No. 33 to the UPS Retirement Plan

 Exhibit 10.2(29) 
  
 AMENDMENT NO. 33 
  
 TO THE 
  
 UPS RETIREMENT PLAN 
  
 WHEREAS, United Parcel Service of America, Inc. (“UPS”) and its affiliated corporations established the UPS Retirement Plan (“Plan”) for the benefit of its employees, in order to provide benefits
to those employees upon their retirement, disability, or death, effective as of September 1, 1961; and 
  
 WHEREAS, the Plan, as adopted and amended from time to time, was amended and restated in its entirety, effective as of January 1, 1976, to comply
with the Employee Retirement Income Security Act of 1974; and 
  
 WHEREAS, the Plan has been amended on a number of occasions since January 1, 1976, the most recent being Amendment No. 32; and 
  
 WHEREAS, Motor Cargo became a wholly owned indirect subsidiary of United Parcel Service, Inc. on August 5, 2005 pursuant to an agreement of merger
among United Parcel Service, Inc., Olympic Merger Sub, Inc. and Overnite Corporation dated as of May 25, 2005 (the “Merger”); and 
  
 WHEREAS, as a result of the Merger, UPS desires to merge the assets and liabilities attributable to participants of the Pension Plan for Employees of
Motor Cargo whose terms and conditions of employment are not governed by a collective bargaining agreement to which Motor Cargo is a party with and into the Plan effective as of 11:59 p.m. Eastern Standard Time on December 31, 2005. 

 
 NOW THEREFORE, pursuant to the authority vested in the Board of Directors
by Section 7.1 of the Plan, the UPS Retirement Plan is hereby amended effective as of 11:59 p.m. Eastern Standard Time on December 31, 2005, as follows: 
  
 1. The assets and liabilities attributable to participants of the Pension Plan for Employees of Motor Cargo whose terms and conditions of
employment are not governed by a collective bargaining agreement as of December 31, 2005 and who were employed by Motor Cargo on such date and terminated vested participants whose terms and conditions of employment were, as of their most recent
termination date, not governed by a collective bargaining agreement, shall be transferred into the UPS Retirement Plan, effective as of 11:59 p.m. Eastern Standard Time on December 31, 2005. 
  
 2. Appendix G, Employer Companies, is hereby amended to add Motor Cargo to the list
of Employer Companies with an effective date of January 1, 2006. 
  
 3. The
Plan is hereby amended to add Appendix K to the Plan effective as of January 1, 2006. 

 4. Except as otherwise expressly amended herein, the Plan as in effect immediately before this Amendment No. 33
shall remain in full force and effect. 
  
 IN WITNESS WHEREOF, the
undersigned certify that United Parcel Service of America, Inc. based upon action by the Board of Directors on December 20th, 2005, has caused this Amendment No. 33 to be adopted. 
  

					
	 ATTEST:
	  	 	  	UNITED PARCEL SERVICE
	 	  	 	  	 OF AMERICA, INC.

			
	 /s/ Allen E. Hill
	  	 	  	 /s/ Michael L. Eskew

	 Allen E. Hill
	  	 	  	Michael L. Eskew
	 Secretary
	  	 	  	Chairman

  

 2 

 EXECUTION COPY 
  
 UPS RETIREMENT PLAN 
  
 APPENDIX K 
  
 MOTOR CARGO EMPLOYEE BENEFIT SCHEDULE 
 EFFECTIVE JANUARY 1, 2006

  
 The provisions of this Appendix K will apply only to that
period of employment during which an individual is a Motor Cargo Employee (as defined below). 
  
 Except as provided for in this Appendix K, a Motor Cargo Employee shall not accrue benefits under any other provisions of this Plan during the period he or she is a Motor Cargo Employee even if such Motor Cargo
Employee is performing services for an employer other than Motor Cargo. If a Motor Cargo Employee is entitled to benefits under the Plan for any period before he or she became a Motor Cargo Employee or for any period after he or she ceases to be a
Motor Cargo Employee, such benefits, if any, will be determined under Plan provisions other than this Appendix K. 
  
 References to Articles and Sections are to Articles and Sections of this Appendix K unless otherwise expressly indicated. This
Appendix K is effective for Plan Years beginning on and after January 1, 2006. 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Wherever used herein
or in the main text of the Plan with respect to a Motor Cargo Employee, the following capitalized terms shall have the meaning set forth below unless otherwise clearly required by the context. If a capitalized term used in this Appendix K or in the
main text of the Plan is not defined herein, it will have the same meaning assigned to such term in the main text of the Plan. 
  
 SECTION 1.1. - “Accrued Benefit” means the annual amount of a Motor Cargo Participant’s benefit as determined in
Section 5.2(a) payable on his or her Normal Retirement Date in the Normal Form described in Section 5.3(c)(2) of the main text of the Plan for a single Participant (a single life annuity). 
  
 SECTION 1.2. - “Actuarial Equivalent” means for
purposes of determining the benefit payable in an optional form of benefit as of an Annuity Starting Date occurring on or after January 1, 2006 (other than the Present Value of a benefit as described in Section 1.1 (hh) of the main text of
the Plan) (an “Optional Form”), a benefit having in the aggregate equality in value to the amounts expected to be received under the Normal Form of benefit payment for a single Participant based on the following factors: 
  
 (a) For a Grandfathered Motor Cargo Participant, 
  

 1 

 (1) with respect to an Optional Form other than a Single Life Annuity with 120 Month
Guarantee (as described in Section 5.3(f) of the main text of the Plan), the factors described in (i) or (ii), whichever produces the greater benefit, where (i) is the factors described in Section 1.1(v)(1) of the main text of
the Plan and (ii) is an interest rate of 8% and the UP 1984 Unisex Pension Mortality Table; and 
  
 (2) with respect to the Single Life Annuity with 120 Month Guarantee, the factors described in Section 1.1(v)(1) of the main text of
the Plan; and 
  
 (b) For a Motor Cargo Participant (other than a
Grandfathered Motor Cargo Participant) with respect to any Optional Form, the factors described in Section 1.1(v)(1) of the main text of the Plan. 
  
 SECTION 1.3. - “Applicable Interest Rate” means the interest rate described in Section 1.1(ff`) of the main text of the Plan;
provided, however, that for a Grandfathered Motor Cargo Participant, lump sum benefits paid on or after January 1, 2006 and before January 1, 2007, the Applicable Interest Rate means the lesser of (a) the “applicable interest
rate” as described in Section 417(e)(3) of the Code for the November preceding the calendar year that includes the date the distribution is made or (b) the “applicable interest rate” as described in Section 417(e)(3) of
the Code for the month of August preceding the calendar year that includes the date the distribution is made. 
  
 SECTION 1.4. - “Applicable Mortality Table” means the “applicable mortality table” prescribed by the Secretary of the
Treasury for purposes of Section 417(e) of the Code. 
  
 SECTION 1.5. - “Benefit Service” means (a) for periods before January 1, 2006, each “year of service” for benefit accrual purposes completed under the Motor Cargo Plan and (b) effective
January 1, 2006, each year of Benefit Service as defined in the main text of the Plan. 
  
 SECTION 1.6. - “Disabled Participant” means a Motor Cargo Participant who terminated employment with all Employer Companies and Related Employers due to Total Disability. 
  
 SECTION 1.7. - “Early Retirement Date” means

  
 (a) For a Motor Cargo Employee who participated in the Motor
Cargo Plan prior to January 1, 2006, the first day of any calendar month coincident with or next following his or her attainment of age 55 and the completion of at least 5 Years of Vesting Service; 
  
 (b) For a Motor Cargo Employee who first becomes a Motor Cargo Participant on
or after January 1, 2006, the first day of any calendar month coincident with or next following his or her attainment of age 55 and the completion of at least 10 Years of Service. 
  
 SECTION 1.8. - “Grandfathered Motor Cargo Participant” means a Motor Cargo Participant who was a
participant in the Motor Cargo Plan on December 31, 2005. 
  
 SECTION 1.9. - “Hour of Service” means for Plan Years beginning before 2006, an “hour of service” as described in Section 1.27 of the Motor Cargo Plan and for Plan Years 

  

 2 

 
beginning on or after January 1, 2006, an “Hour of Service” as described in Section 1.1(n) of the main text of the Plan. 
  
 SECTION 1.10. - “Motor Cargo Early Retirement Benefit” means
the benefit described in Section 5.2(b). 
  
 SECTION 1.11. -
“Motor Cargo Employee” means (a) when used with reference to any Plan Year before 2006, an “employee” as defined in Section 1.07 of the Motor Cargo Plan and (b) when used with reference to any Plan Year
beginning on or after January 1, 2006, an Employee (as defined in the main text of the Plan, without regard to the second paragraph of such definition) employed by Motor Cargo who has an Hour of Service with Motor Cargo on or after
January 1, 2006 and who is not a participant in or covered under any other qualified defined benefit plan to which Motor Cargo currently makes contributions on his or her behalf. Under no circumstances will an individual who performs services
for Motor Cargo, but who is not classified on the payroll as an employee of Motor Cargo, for example, an individual performing services for Motor Cargo under a leasing arrangement, be treated as a Motor Cargo Employee even if such individual is
treated as an employee of Motor Cargo as a result of common law principles, co-employment principles or the leased employee rules under Section 414(n) of the Code. Further, if an individual performing services for Motor Cargo is retroactively
reclassified as an employee of Motor Cargo for any reason, such reclassified individual shall not be treated as a Motor Cargo Employee eligible to participate in the Plan for any period prior to, on or after the date such reclassification except as
determined by the Trustees. 
  
 SECTION 1.12. -
“Motor Cargo Participant” means depending on the context, a Motor Cargo Employee who was a participant in the Motor Cargo Plan or has satisfied the participation requirements of Article II, other than, effective January 1,
2006, any Motor Cargo Employee whose terms and conditions of employment are subject to a collective bargaining agreement, unless such agreement expressly provides for the eligibility of such person to participate in this Plan. 
  
 SECTION 1.13. - “Motor Cargo Plan” means the Pension
Plan for Employees of Motor Cargo as in effect on December 31, 2005. 
  
 SECTION 1.14. - “Normal Form” means the annuity benefit forms described in Section 5.3(a) of the main text of the Plan. 
  
 SECTION 1.15. - “Normal Retirement Age” means: 
  
 (a) for a Motor Cargo Employee who participated in the Motor Cargo Plan prior
to January 1, 2006, his or her attainment of age 65; 
  
 (b)
for a Motor Cargo Employee who first becomes a Motor Cargo Participant on or after January 1, 2006, the later of (1) the Motor Cargo Participant’s attainment of age 65 or (2) the Motor Cargo Participant’s completion of 5
Years of Service or, if earlier, the fifth anniversary of his or her participation in this Plan. 
  
 SECTION 1.16. - “Normal Retirement Date” means the first day of the calendar month coincident with or next following a
Participant’s Normal Retirement Age. 
  

 3 

 SECTION 1.17. - “Total Disability” or “Totally Disabled” means:

  
 (a) for the period beginning January 1, 2006 through, but
not including, July 1, 2006, a disability due to bodily injury or physical or mental disease which renders a Motor Cargo Participant eligible for disability benefits under the federal Social Security Act. 
  
 (b) for periods on or after July 1, 2006 “totally disabled”
for purposes of the UPS Income Protection Plan, or a successor long term disability plan. 
  
 SECTION 1.18. - “Year of Vesting Service” means the sum of: 
  
 (a) each full “year of service” (as defined in § 8.06 of the Motor Cargo Plan) completed on or before December 31, 2005, other than
service that is disregarded under Section 8.08 of the Motor Cargo Plan; 
  
 (b) each Year of Service as defined in the main text of the Plan completed after December 31, 2005, other than service that is disregarded under Section 6.2 of the main text of the Plan. 
  
 ARTICLE II 
  
 ELIGIBILITY FOR PARTICIPATION 
  
 SECTION 2.1. - Eligibility Requirements. Each Grandfathered Motor
Cargo Participant shall become a Motor Cargo Participant as of January 1, 2006. Each other Motor Cargo Employee shall become a Motor Cargo Participant in accordance with the eligibility requirements of Article II of the main text of the Plan on
and after January 1, 2006, taking into account his or her Hours of Service completed before January 1, 2006. 
  
 ARTICLE III 
  
 FUNDING 
  
 [See Main Text of Plan] 
  
 ARTICLE IV 

  
 ELIGIBILITY FOR BENEFITS  
  
 Section 4.1. General. Sections 4.1 through 4.4 of Article IV
of the main text of the Plan shall apply to all Motor Cargo Participants, except that references to Article V and to Section 5.2 shall be to Article V and Section 5.2 of this Appendix K. Sections 4.5 through 4.7 shall not apply to any
Motor Cargo Participant who is determined to be Totally Disabled as of any date before July 1, 2006, but shall apply to any Motor Cargo Participant who is determined to be Totally Disabled as of any date on or after July 1, 2006.

  

 4 

 ARTICLE V 
  

AMOUNT AND PAYMENT OF BENEFITS 
  
 Section 5.1. Benefits Limited by Plan Provisions in Effect. The benefit to which a Motor Cargo Participant is entitled, and the form in which
such benefit will be paid, shall be determined by the provisions of this Appendix K. This Article V shall apply to Motor Cargo Participants in lieu of Sections 5.1 (Benefits Limited by Plan Provisions in Effect; Retiree Benefit Increases), 5.2
(Benefit Amounts), 5.2A (Formulas), 5.6 (Benefit Payments Under Other Plans and Programs), 5.7(a) (Minimum Benefit for Participation as of the Effective Date), 5.11 (Suspension of Benefits) and 5.14 (UPS Aviation Technologies, Inc. Employees) of the
main text of the Plan while he or she is a Motor Cargo Employee. Notwithstanding the forgoing, the last two sentences of 5.3(g) of the main text of the Plan shall not apply to a Grandfathered Motor Cargo Participant. Section 5.4 of the main
text of the Plan (Disability Benefit) shall not apply to any Motor Cargo Participant who is determined to be Totally Disabled as of any date before July 1, 2006, but shall apply to any Motor Cargo Participant who is determined to be Totally
Disabled as of any date on or after July 1, 2006. Any benefit paid under this Appendix K shall be subject to Sections 5.7(b) (Maximum Benefits), 5.8 (Limitations Regarding time of Payment of Benefits), 5.9 (Designation of Beneficiary), 5.10
(Final Payment to Participant or Beneficiary), 5.12 (Withholding of Income Tax) and 5.13 (Direct Rollover) of the main text of the Plan. 
  
 Section 5.2. Benefit Amounts. 
  
 (a) Normal Retirement Benefit. A Motor Cargo Participant who has a termination of employment with all Employer Companies and Related Employers on
his or her Normal Retirement Date, shall be entitled to receive his or her retirement benefit, as determined in paragraphs (1) and (2): 
  
 (1) Benefit Formula. Subject to paragraph (2), the annual benefit of a Motor Cargo Participant shall equal the sum of (i) and
(ii), when (i) and (ii) equal: 
  
 (i) the Motor Cargo
Participant’s annual benefit accrued under the Motor Cargo Plan as of December 31, 2005; 
  
 (ii) for each calendar year beginning after December 31, 2005, an annual benefit determined by multiplying the Motor Cargo Participant’s years
of Benefit Service completed after December 31, 2005 by $240.00. 
  
 (2) In no event shall the retirement benefit of a Motor Cargo Participant who does not complete an Hour of Service after December 31, 2005 be based on more than 25 consecutive “years of service” as
defined in the Motor Cargo Plan. Additionally, the benefit of a Motor Cargo Participant who completes an Hour of Service on or after January 1, 2006, shall not be based on more than 30 years of Benefit Service. 
  
 (3) Commencement at Normal Retirement Age. A
Grandfathered Motor Cargo Participant who has attained Normal Retirement Age may elect to commence 

  

 5 

 
payment of his or her Accrued Benefit even if he or she has not terminated employment with all Employer Companies and Related Employers. 
  
 (b) Early Retirement Benefit. 
  
 (1) Normal Commencement. A Motor Cargo Participant
who terminates employment with all Employer Companies and Related Employers on or after his or her earliest Early Retirement Date but before his or her Normal Retirement Date shall be entitled to begin receiving his or her Accrued Benefit,
determined as of such employment termination, as of his or her Normal Retirement Date. 
  
 (2) Early Commencement. A Motor Cargo Participant who is eligible to receive his or her Accrued Benefit as described in
Section 5.2(b)(1) may elect to begin receiving such benefit upon any Early Retirement Date, provided that the Accrued Benefit is reduced for early commencement by .375% for each month by which his or her Early Retirement Date precedes his or
her Normal Retirement Date. 
  
 (c) Deferred Vested
Benefit. 
  
 (1) Normal Commencement.
A Motor Cargo Participant who terminates employment with all Employer Companies and Related Employers after he or she is fully vested will be entitled to begin receiving his or her Accrued Benefit upon attaining his or her Normal Retirement Date.

  
 (2) Early Commencement. A Motor Cargo
Participant who is eligible to receive his or her Motor Cargo Early Retirement Benefit as described in Section 5.2(b) may commence such benefit as of the first day of any calendar month on or after he or she terminates employment with all
Employer Companies and Related Employers and reaches age 55 but before his or her Normal Retirement Date, which benefit shall be determined as described in Section 5.2(b)(2). 
  
 (d) Postponed Retirement Benefit. A Motor Cargo Participant who terminates employment with all Employer Companies and
Related Employers after his or her Normal Retirement Date shall be entitled to a benefit commencing as of his or her Postponed Retirement Date that is the Actuarial Equivalent of the Motor Cargo Participant’s Accrued Benefit payable as of the
later of Normal Retirement Date or the last day of the prior Plan Year. A Motor Cargo Participant’s Accrued Benefit as of the end of each Plan Year following his or her Normal Retirement Date is the greater of: (1) his or her Accrued
Benefit taking into account benefits accrued after his or her Normal Retirement Date or (2) the Accrued Benefit, determined as of the later of Normal Retirement Date or the end of the prior Plan Year, actuarially adjusted for late retirement.

  
 Section 5.3. Form of Benefit Payment. 

 
 (a) Optional Forms. The Accrued Benefit payable to a Motor Cargo
Participant will be paid in accordance with Section 5.3 of the main text of the Plan. In addition to the optional forms of benefit available under Section 5.3(f) of the main text of the Plan, a Motor Cargo Participant who was a participant
in the Motor Cargo Plan on December 31, 2005 may elect, as 

  

 6 

 
an optional form of benefit, a five year certain and life annuity for his or her entire Accrued Benefit. For purposes of applying Section 5.3 of the
main text of the Plan, the terms Actuarial Equivalent and Applicable Interest Rate shall have the meaning assigned to such terms in this Appendix K. 
  
 (b) Lump Sum Payment A Motor Cargo Participant who terminated employment with Motor Cargo on or after March 28, 2005 but prior to
January 1, 2006 may elect to receive his or her Accrued Benefit payable under Section 5.3 in a cash lump sum as soon as practicable after his or termination of employment if the Present Value of such benefit is at least $1,000 but does not
exceed $5,000. If a Motor Cargo Participant’s (other than a Grandfathered Motor Cargo Participant’s) benefit is cashed out pursuant to this Section 5.3(b) or Section 6.1, service associated with such cash-out shall be disregarded
for purposes of the Plan; provided, however, that such service shall be counted in determining the Employee’s Year of Vesting Service and years of Benefit Service if, upon reemployment, the distribution is repaid by the Motor Cargo Employee to
the Trustees, together with interest at 5% or such other rate as may in the future be established or otherwise made effective by regulation or administration action implementing Sections 204(c)(2)(C) and 204(e) or ERISA. 
  
 Section 5.4. Disability Benefit. 
  
 (a) Before July 1, 2006. Each Motor Cargo Participant who has
completed at least 5 years of Vesting Service and has a Total Disability before age 55 and before July 1, 2006 shall be entitled to an immediate disability benefit equal to 55% of the Motor Cargo Participant’s vested Accrued Benefit
commencing on the first day of the month coincident with or next following his or her Total Disability and ending on the date he or she ceases to be a Disabled Participant. The disability benefit provided by this Section 5.4 shall be paid in
the Normal Form or in any form elected by the Participant under Section 5.3. 
  
 A Disabled Participant shall cease to be such if and when: 
  
 (i) he or she reaches age 55; 
  
 (ii) he or she ceases to suffer from Total Disability; or 
  
 (iii) he or she dies. 
  
 When a Disabled Participant reaches age 55, the provisions of
Section 5.2(b) shall apply. Notwithstanding the previous sentence, if the disability benefit payable under this Section 5.4 is more valuable than the Motor Cargo Early Retirement Benefit, the disability benefit shall continue to be paid to
the Motor Cargo Participant upon attaining his or her earliest Early Retirement Date in lieu of the Motor Cargo Early Retirement Benefit. 
  
 The Trustee may require a Motor Cargo Participant to submit evidence of his or her continued eligibility for a disability benefit on a semi-annual basis.
In the event a disabled Motor Cargo Participant refuses or fails to submit such evidence of continued disability, the Trustees will discontinue the disability benefit payments until the Motor Cargo Participant does submit satisfactory evidence of
his or her continued disability. No disability benefit shall be paid 

  

 7 

 
under this Section 5.4 pending a determination of Total Disability by the Social Security Administration. 
  
 (b) After June 30, 2006. Each Motor Cargo Participant who is
determined to be Totally Disabled as of any date on or after July 1, 2006 shall be eligible to receive the disability retirement benefit described in Section 5.4 of the main text of the Plan. 
  
 Section 5.5 Qualified Joint and Survivor (Husband and Wife)
Preretirement Survivor Benefit. Each vested Motor Cargo Participant shall have the Qualified Joint and Survivor (Husband and Wife) Benefit as described in Section 5.3 of the main text of the Plan effective for the benefit of his or her
spouse so that if such Participant dies prior to his or her Annuity Starting Date his or her spouse will be entitled to receive a Preretirement Survivor Benefit as described in Section 5.5 of the main text of the Plan based on his or her
Accrued Benefit described in this Appendix K and determined without regard to Section 5.5(c) of the main text of the Plan. 
  
 Section 5.6 Benefit Payments Under Other Plans and Programs. The benefits otherwise provided in this Appendix K and accrued after
December 31, 2005 shall be reduced in the case of any Motor Cargo Participant, Disabled Participant or beneficiary, by the amount of any benefits payable to such Motor Cargo Participant, Disabled Participant, or beneficiary under any other
non-government pension or retirement plan or program to which contributions have been made by an Employer Company on behalf of such person or under which service with an Employer Company is counted in calculating benefits, except the UPS Savings
Plan and any other cash or deferred plan described in Section 401(k) of the Code or the UPS Qualified Stock Ownership Plan, to the extent that such benefits payable under such other plan or program are based on a period of time included in the
calculation of years of Benefit Service, for purposes of this Appendix K and are not attributable to contributions made to such other plan or program by the Motor Cargo Participant or Disabled Participant. 
  
 If a reduction in benefits is also called for in another plan or plans
sponsored and maintained by the Employer Company by reason of the benefits payable to a Motor Cargo Participant under this Plan, the reduction in benefits shall be made only in the benefits payable under the plan in which the Motor Cargo Participant
last participated, and if he or she participated in more than one such other plan, then the reduction shall be made in the reverse order of participation with no reduction in the benefits payable under the plan in which the Motor Cargo Participant
or Disabled Participant first participated. 
  
 If the Motor Cargo
Participant receives one form of benefit under this Plan and another form of benefit under any such other plan, any reduction hereunder shall be based on actuarially equivalent forms of benefit. 
  
 ARTICLE VI 
  
 VESTING 
  
 Section 6.1. General. Each Grandfathered Motor Cargo Participant
shall be fully vested in his or her Accrued Benefit upon: 
  

 8 

 (c) attainment of his or her Normal Retirement Age; 
  
 (d) completion of 5 Years of Vesting Service; or 
  
 (e) his or her termination of employment due to death. 
  
 For each Motor Cargo Employee who first becomes a Motor Cargo Participant on or after
January 1, 2006, the provisions of Article VI of the main text of the Plan will apply for purposes of vesting. 
  
 ARTICLES VII -XI 
  
 MISCELLANEOUS 
  
 Section 7.1. General. The provisions of Article VII (Amendment, Modification and Termination; Merger), Article VIII (Investments), Article IX
(Administrative Committee), as modified by Section 9.4 below, Article X (General Provisions) (other than Section 10.12, Former Rollins Employees), and Article XI (Top-Heavy Provisions) shall apply to Motor Cargo Participants and the
benefits accrued under this Appendix K. 
  
 ARTICLE XII

  
 RETIREE MEDICAL BENEFITS 
  
 Section 12.1. General. Article XII of the main text of the Plan
shall not apply to any Motor Cargo Participant. 
  

 9

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