UPS TO FREEZE PENSION PLANS FOR NON- UNION EMPLOYEES

United Parcel Service, the nation's largest package delivery company, said Tuesday it will freeze its pension program for 70,000 nonunion employees in five years and replace it with 401k accounts, reacting to a rising pension deficit and joining other large corporations that have phased out traditional retirement plans. Rising pension costs, the volatility in future funding and changing demographics -- mainly the fact that people are living longer -- triggered the move, the company said. As of the end of 2016, UPS' pension deficit in the U. S. totaled $ 9.9 billion. It owed $ 41.1 billion to retirees and current employees who are enrolled in the pension plans, but had enough to fund only 76% of what it owes.