$811m to go into UPS plans
UPS expects to contribute $811m to its $12.8bn US pension plans, and $343m to its international pension plans this year, reports emii.com.
UPS expects to contribute $811m to its $12.8bn US pension plans, and $343m to its international pension plans this year, reports emii.com.
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Gimme Credit, a fixed-income research firm, in a report published on 30 July commented on the expected pension contribution, saying “one of UPS’ greatest strengths is its balance sheet,” noting the company holds $3.3bn of cash and marketable securities. “We believe UPS maintains excellent liquidity, stable credit ratings and solid free cash flow,” said the report, written by B. Craig Hutson, analyst.
UPS in a 7 May filing had said it expects to contribute the $811m over the remainder of the year. Of that, it is contributing $778m to the new jointly trusteed UPS-International Brotherhood of Teamsters Plan created to cover employees who belong to the Teamsters Central States, Southeast and Southwest Areas Pension Plan, said Susan Rosenberg, UPS spokeswoman. The new plan was set up after UPS withdrew from the Central States plan.
UPS oversees the investment management of the joint plan, Rosenberg said. Further details were unavailable.
Last year UPS contributed $120m to its pension plans. “The contributions to our company-sponsored pension plans are expected to increase significantly in 2009, compared with 2008, primarily as a result of required minimum pension funding for the UPS IBT Pension Plan,” the filing said.
