How Much Does UPS Match 401k?


Are you applying for a job with United Parcel Service (UPS) and are curious about what kind of 401k matching they offer?

Great, this article have you covered. However, while UPS offers generous retirement plans, they are typically pensions, not 401ks.

The amount each pensioner receives upon retirement is dictated by a few factors, including how long they worked for UPS and which Teamsters union they are a part of.


UPS is regarded as an excellent employer, offering generous pay and benefits. Regarding retirement pensions, UPS has over a dozen different pension plans because there are many Teamsters unions, which each negotiate their terms.

The largest Teamsters union is IBT, which covers 22 states.

Currently, a pensioner there pulls out $3,800 per month after 30 years of employment, while that number can increase to $4,300 per month with 35 years of employment, which is the maximum length of time before you are forced to start collecting your pension.

In this article, we will go over the benefits of being an employee at UPS and some of the main differences between a pension and a 401k.

UPS might be perfect if you’re looking for an employer offering competitive benefits. We will take a closer look at some of the perks you’ll enjoy if you land a job working for UPS.

What Can Brown Do for You?


If you’re unfamiliar, “what can brown do for you” was the slogan of UPS for many years. The trucks are painted brown, and employees wear brown uniforms.

Let’s look at some of the perks that UPS offers its employees.

1. Strong Pension


The specific pension plan in your neck of the woods may differ from some of the numbers here. There are over 12 Teamsters unions within UPS, which negotiate their benefits.

As mentioned earlier, the largest of these unions is IBT, which covers 22 states.

A union member of IBT can anticipate a pension of $3,800 monthly after 30 years (called a “30 out”), while that rate increases to $4,300 per month after 35 years of employment.

These numbers are lower than many other UPS employees. For example, members of the NY 804 union enjoy a “30 out” of $4,400.

If you’re applying for a job at UPS in NJ 177 union, your “30 out” is even more generous, to $4,450.00. The Western Conference of Teamsters, located in 11 states, has a “30 out” of $5,000.

UPS Makes Pension Contributions

We’ll dive deeper into 401k’s in a bit, but typically those contributions are primarily made by the employee, with the employer kicking in a small percentage.

Not so with pensions. The contributions are made entirely by the employer. UPS contributes over $23,000 yearly to each full-time employee’s pension plan. Not bad!

2. Good Healthcare Benefits


If you live in the United States, you don’t need me to tell you this – health care is expensive. But not if UPS employs you.

Both full and part-time employees at UPS, who Teamsters represent, enjoy health care with no premiums and low or no copays.

3. Vacation Days


Feel like going somewhere exotic and soaking up the sun? UPS might be able to help you with that.

Employees start with a whole week of vacation. This maxes out after 30 years at seven weeks of paid vacation time. So the typical employee who has worked at UPS for 15 years enjoys four weeks of vacation.

Oh, did I mention those vacation days are paid? So you’ll be banking that money while your toes are on a sandy beach.

4. Tuition Assistance


UPS also offers tuition assistance if you’re in school or considering returning to school.

Pensions vs. 401ks

Pensions and 401ks are both retirement savings accounts. While pensions used to be standard, times have changed, and 401k’s are now the retirement plan most employers offer in the United States. UPS is one employer that is still offering pensions.

One disadvantage of pensions is that, typically, they are not portable if you leave your job. That means any savings you’ve accrued won’t move to your next job with you – you’ll be starting your retirement savings all over from scratch.

Pensions last longer than you

One massive advantage that pensions offer once you retire is that they don’t expire until you do. Your pension payment amount will not change until you die. The payments never run out.

401k’s vary from pensions in a few significant ways. First, the money you accrue in a 401k is invested in the stock market, so payout amounts vary based on how the market performed while your money was invested in the account.

401ks are also funded mainly by the employee rather than the employer, although many employers offer 401k matching to a certain percentage as a perk.

401k’s are also employee controlled. You can choose how risky you want your investments to be. They also expire when the money in the account runs out – unlike pensions, 401k’s aren’t guaranteed to last until your death.

Is a Job at UPS Right for You?

Look, no one can answer that but yourself. UPS workers are often lifting large, clumsy, heavy boxes. Their drivers are subjected to long days and, at times, grueling weather, and they need to maintain strong physical health as they’re on their feet for long stretches of the day.

However, numerous compelling reasons exist for applying for a job at UPS. Pensions are hard to find in the modern employment landscape, and theirs is extremely generous compared to other employers’ 401k matching.

Other strong arguments for working at UPS include tuition reimbursement, paid vacation time, and generous health care coverage.

Leave a Comment

Your email address will not be published. Required fields are marked *