If you are currently a dispatcher at Union Pacific, you may be interested to know that there are significant differences between the benefits you receive as a management employee and those you would receive under a negotiated agreement. These differences include retirement benefits, disability insurance, life insurance and more generous vacation allotments.
Eligibility
Union Pacific employees are eligible to receive a union pacific pension, or annuity. This is a retirement benefit that pays you monthly for as long as you live, based on your work history and pay.
For most union pacific employees, the basic service requirement is 10 years of creditable railroad service. However, if you have been with the company for 25 years or more and meet certain other requirements, you may be able to retire early without age reductions.
In addition to the pension benefits, employees have the option of receiving a non-railroad sick leave benefit. Employees can contribute up to $5,650 tax free for family coverage and $2,950 for single coverage. The health care contribution is also completely employee-funded, and the company picks up most of the administrative costs. UP also offers cash wellness incentives to its employees.
Benefits
Union Pacific dispatchers enjoy a number of benefits that other ATDA negotiated agreements do not include. These include a more generous vacation allotment, disability insurance and life insurance, and retirement benefits funded by the company.
The Railroad Retirement Board provides a pension that is similar to Social Security but differs in two critical ways: (i) early retirement reductions are not applicable to employees who had at least 30 years of service and, (ii) a railroad supplemental annuity is payable upon the death of a RRB-covered employee.
This supplemental benefit can be paid in either the form of a single life annuity or an equal amount in monthly payments, depending on the Participant’s age. This Supplemental Pension is determined using the same actuarial adjustments as apply to a Participant’s Pension Plan benefit, provided that the Supplemental Pension starts before the normal retirement date of such Participant. The supplemental pension is subject to the same Beneficiary designation as applies to his Pension Plan benefit.
Payouts
The union pacific retirement scheme offers some of the best payouts in the industry. As a member you can expect to receive a generous lump sum at your retirement age as well as a pension that will last for as long as you live. The scheme also offers some of the lowest employee health insurance premiums in the business, which can save you money on your current and future medical bills. The company also has an exemplary benefits program, which is designed to provide an exceptional customer service experience for participants and their families. The company also has an impressive corporate culture that values teamwork and diversity. If you are considering a career in the railroad sector, the union pacific retirement scheme is one way to ensure you’re in good company and secure your financial future for many years to come. Those looking to find out more about the scheme can visit the official website here.
Taxes
The RRTA imposes a tax on railroad employees and employers, which contributes to financing railroad retirement benefits in excess of those provided by Social Security. The earnings subject to these taxes are determined annually.
Regular railroad retirement annuities consist of tier I, tier II and vested dual benefit components. These annuities have been subject to Federal income tax since 1984.
Supplemental annuities are not subject to Federal income tax. They are funded by a combination of PBGC taxes and employee contributions.
During the years ended December 31, 2015 and 2014, the Master Trust invested $1.7 billion in Company Stock Funds. The funds held Company common stock, along with a small amount of cash for liquidity purposes.
The Eighth Circuit Court of Appeals recently overturned a lower court’s decision in a case that involved ratification payments made to union members by Union Pacific. In doing so, the Court ruled that Union Pacific’s interpretation of the RRTA was more compelling than the government’s.
