UPS Inc. said it reached an agreement with the Teamsters union to restructure a pension plan covering 10,200 union workers in the New England region.
UPS said it take an $896 million third-quarter charge, which represents the current value of its $2.1 billion withdrawal liability from the original pool, which it will pay over the next 50 years.
The agreement freezes UPS’ liabilities under the New England Teamsters & Trucking Industry Pension Fund and allows the company to move workers to a new plan.
Subject to approval by local unions, the withdrawal will be effective Sept. 16, the company said late Friday.
“This transfer will remove uncertainty associated with this plan for our people while being fair to the company and our investors,” John McDevitt, UPS’ senior vice president of labor relations, said in a statement.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.