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Administration October 10, 2003
UPS Calls Pension Plans 'Healthy'
October 22, 2002 (PLANSPONSOR.com) - At the same
time as many major US corporations are struggling with
dramatically underfunded pensions, United Parcel Service
(UPS) reported that its pension plans are "very healthy" with
a 93% funding level for 2003.
Reported by Fred Schneyer
The package-delivery company also announced in a conference call with investment analysts that its pension expenses were expected to rise by $135 million next year as the company cuts its discount rate assumptions to 6.5% and its return on investment assumptions to 9.2%, according to a Dow Jones report.
Chief financial officer Scott Davis told the analysts that the Atlanta-based company might also increase its dividend. Separately, UPS reported a 1.8% increase in third quarter net profit, Dow Jones said.
The auto industry has been particularly hard hit with pension shortfalls, but other companies have shared in the suffering as well , including the parent company of Kentucky Fried Chicken and 3M .