UPS Retirement Plan

UPS Retirement Plan is essentially fully funded: 91% funding ratio — assets of $9.7B against actuarial liabilities of $10.7B. Fully funded status is the regulatory target most plans aim for; getting there usually requires sustained investment returns plus disciplined sponsor contributions.

UPS Retirement Plan is a corporate pension plan sponsored by United Parcel Service — a single-employer defined-benefit plan governed by ERISA and insured by the Pension Benefit Guaranty Corporation (PBGC). Corporate plans peaked in U.S. usage in the 1980s and have been in steady decline since, mostly replaced by 401(k) plans. The plan remains active — accruing new benefits for current employees and accepting new participants. Among private-sector single-employer plans, the active status is increasingly rare as employers freeze accruals while continuing to fund existing obligations; public-sector plans are more often still actively accruing.

UPS Retirement Plan is a large pension plan with $9.7B in assets and 243,932 participants (159,780 active, 83,313 retired). Large plans usually have professional investment management and complex actuarial structures. Active participants outnumber retirees (159,780 active vs 83,313 retired) — a younger plan still in the accrual phase, where contributions and investment growth build the asset base ahead of large future payouts. Annual cash flows: $1.0B in sponsor contributions versus $3.5B in benefit payments. Investment performance over the most recent year ran 6.7%, against the plan's assumed long-term return of 5.5%.

On PBGC risk classification: low — the plan's funded status and solvency trajectory are favorable enough that PBGC intervention is not on the near-term horizon. Corporate ERISA plans like UPS Retirement Plan carry PBGC insurance, which guarantees retiree benefits up to a federally-set maximum even if the sponsor defaults. The guarantee is meaningful but capped — high earners may see benefit haircuts in a termination scenario.