UPS Retirement question

[Sluggo_63]

I'm trying to help a buddy crunch some numbers, and I was wondering if there is any drawback in retirement benefits if you are there for only 18 years versus 20+ (besides the A-plan multiplier)

Thanks

 

[Singlecoil]

I'm trying to help a buddy crunch some numbers, and I was wondering if there is any drawback in retirement benefits if you are there for only 18 years versus 20+ (besides the A-plan multiplier)

Thanks

I'm not a UPS pilot, but most DB plans have a substantial early retirement penalty for retiring before "normal" retirement age, which is age 60 or X number of years of service with the company. Say your company lets you retire with 25 years of service and you were hired when you were 30. At age 55 you will have 25 years of service, meaning you don't pay the early retirement penalty (8% per year early or so) but you would lose the A plan multiplier for those 5 years.
I think most of the airlines use 25-30 years of service for normal retirement. If you go out at less than the minimum service time before age 60, you're going to take a hit.