MULTIEMPLOYER EMPLOYEE BENEFIT PLANS

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MULTIEMPLOYER EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2012
Multiemployer Plans [Abstract]
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS	MULTIEMPLOYER EMPLOYEE BENEFIT PLANS We contribute to a number of multiemployer defined benefit plans under the terms of collective bargaining agreements that cover our union-represented employees. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. However, cessation of participation in a multiemployer plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process. The discussion that follows sets forth the financial impact on our results of operations and cash flows for the years ended December 31, 2012, 2011 and 2010 from our participation in multiemployer benefit plans. Several factors could cause us to make significantly higher future contributions to these plans, including unfavorable investment performance, changes in demographics and increased benefits to participants. However, all surcharges are subject to the collective bargaining process. At this time, we are unable to determine the amount of additional future contributions, if any, or whether any material adverse effect on our financial condition, results of operations or liquidity would result from our participation in these plans. The number of employees covered by our multiemployer plans has remained consistent over the past three years, and there have been no significant changes that affect the comparability of 2012, 2011 and 2010 contributions. We recognize expense for the contractually-required contribution for each period, and we recognize a liability for any contributions due and unpaid at the end of a reporting period. Multiemployer Pension Plans The following table outlines our participation in multiemployer pension plans for the periods ended December 31, 2012, 2011 and 2010, and sets forth our calendar year contributions into each plan. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act zone status available in 2012 and 2011 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that we received from the plans’ administrators and is certified by each plan’s actuary. Among other factors, plans certified in the red zone are generally less than 65% funded, plans certified in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans certified in the yellow zone are less than 80% funded, and plans certified in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan (“FIP”) for yellow/orange zone plans, or a rehabilitation plan (“RP”) for red zone plans, is either pending or has been implemented. As of December 31, 2012, all plans that have either a FIP or RP requirement have had the respective FIP or RP implemented. Our collectively-bargained contributions satisfy the requirements of all implemented FIPs and RPs and do not currently require the payment of any surcharges. In addition, minimum contributions outside of the agreed upon contractual rate are not required. For the plans detailed in the following table, the expiration date of the associated collective bargaining agreements is July 31, 2013, with the exception of the Automotive Industries Pension Plan and the IAM National Pension Fund / National Pension Plan which both have a July 31, 2014 expiration date. For all plans detailed in the following table, we provided more than 5% of the total plan contributions from all employers for 2012, 2011 and 2010 (as disclosed in the Form 5500 for each respective plan). Certain plans have been aggregated in the “All Other Multiemployer Pension Plans” line in the following table, as the contributions to each of these individual plans are not material.   EIN / Pension Plan   Pension Protection Act Zone Status   FIP/RP Status Pending/   (in millions) UPS Contributions   Surcharge Pension Fund Number   2012   2011   Implemented   2012   2011   2010   Imposed Alaska Teamster-Employer Pension Plan 92-6003463-024   Red   Red   Yes/Implemented   $ 4   $ 4   $ 3   No Automotive Industries Pension Plan 94-1133245-001   Red   Red   Yes/Implemented   4   4   4   No Central Pennsylvania Teamsters Defined Benefit Plan 23-6262789-001   Yellow   Green   Yes/Implemented   29   27   26   No Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund 55-6021850-001   Green   Green   No   9   8   8   No Hagerstown Motor Carriers and Teamsters Pension Fund 52-6045424-001   Red   Red   Yes/Implemented   5   5   4   No I.A.M. National Pension Fund / National Pension Plan 51-6031295-002   Green   Green   No   24   25   24   No International Brotherhood of Teamsters Union Local No. 710 Pension Fund 36-2377656-001   Green   Yellow   No   75   74   70   No Local 705, International Brotherhood of Teamsters Pension Plan 36-6492502-001   Red   Yellow   Yes/Implemented   46   58   56   No Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan 51-6117726-001   Red   Red   Yes/Implemented   87   84   84   No Milwaukee Drivers Pension Trust Fund 39-6045229-001   Green   Green   No   26   26   24   No New England Teamsters & Trucking Industry Pension Fund 04-6372430-001   Red   Red   Yes/Implemented   124   124   112   No New York State Teamsters Conference Pension and Retirement Fund 16-6063585-074   Red   Red   Yes/Implemented   65   57   52   No Teamster Pension Fund of Philadelphia and Vicinity 23-1511735-001   Yellow   Yellow   Yes/Implemented   44   41   39   No Teamsters Joint Council No. 83 of Virginia Pension Fund 54-6097996-001   Yellow   Yellow   Yes/Implemented   44   41   38   No Teamsters Local 639—Employers Pension Trust 53-0237142-001   Green   Green   Yes/Implemented   36   33   31   No Teamsters Negotiated Pension Plan 43-6196083-001   Red   Red   Yes/Implemented   24   22   20   No Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan 52-6043608-001   Yellow   Yellow   Yes/Implemented   14   12   12   No United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan 13-1426500-419   Red   Red   Yes/Implemented   62   57   59   No Western Conference of Teamsters Pension Plan 91-6145047-001   Green   Green   No   520   476   449   No Western Pennsylvania Teamsters and Employers Pension Fund 25-6029946-001   Red   Red   Yes/Implemented   24   21   20   No All Other Multiemployer Pension Plans                 59   44   51                   Total Contributions   $ 1,325   $ 1,243   $ 1,186     In the third quarter of 2012, we reached an agreement with the New England Teamsters and Trucking Industry Pension Fund ("New England Pension Fund"), a multiemployer pension plan in which UPS is a participant, to restructure the pension liabilities for approximately 10,200 UPS employees represented by the Teamsters. The agreement reflects a decision by the New England Pension Fund's trustees to restructure the fund through plan amendments to utilize a "two pool approach", which effectively subdivides the plan assets and liabilities between two groups of beneficiaries. As part of this agreement, UPS agreed to withdraw from the original pool of the New England Pension Fund of which it had historically been a participant, and reenter the New England Pension Fund's newly-established pool as a new employer. Upon ratification of the agreement by the Teamsters in September 2012, we withdrew from the original pool of the New England Pension Fund and incurred an undiscounted withdrawal liability of $2.162 billion to be paid in equal monthly installments over 50 years. The undiscounted withdrawal liability was calculated by independent actuaries employed by the New England Pension Fund, in accordance with the governing plan documents and the applicable requirements of the Employee Retirement Income Security Act of 1974. During 2012, we recorded a charge to expense to establish an $896 million withdrawal liability on our consolidated balance sheet, which represents the present value of the $2.162 billion future payment obligation discounted at a 4.25% interest rate. This discount rate represents the estimated credit-adjusted market rate of interest at which we could obtain financing of a similar maturity and seniority. As this agreement is not a contribution to the plan, the amounts reflected in the previous table do not include this $896 million non-cash transaction. Multiemployer Health and Welfare Plans We also contribute to several multiemployer health and welfare plans that cover both active and retired employees. Health care benefits are provided to participants who meet certain eligibility requirements as covered under the applicable collective bargaining unit. The following table sets forth our calendar year plan contributions. Certain plans have been aggregated in the “All Other Multiemployer Health and Welfare Plans” line in the table, as the contributions to each of these individual plans are not material.     (in millions) UPS Contributions Health and Welfare Fund 2012   2011   2010 Bay Area Delivery Drivers $ 28   $ 27   $ 26 Central Pennsylvania Teamsters Health & Pension Fund 19   18   17 Central States, South East & South West Areas Health and Welfare Fund 471   452   441 Delta Health Systems—East Bay Drayage Drivers 24   17   15 Employer—Teamster Local Nos. 175 & 505 8   8   7 Joint Council #83 Health & Welfare Fund 25   25   25 Local 191 Teamsters Health Fund 9   9   9 Local 401 Teamsters Health & Welfare Fund 6   6   5 Local 804 Welfare Trust Fund 62   58   54 Milwaukee Drivers Pension Trust Fund—Milwaukee Drivers Health and Welfare Trust Fund 29   28   27 Montana Teamster Employers Trust 6   6   6 New York State Teamsters Health & Hospital Fund 44   41   40 North Coast Benefit Trust 7   7   7 Northern California General Teamsters (DELTA) 75   73   70 Northern New England Benefit Trust 33   32   31 Oregon / Teamster Employers Trust 27   27   25 Teamsters 170 Health & Welfare Fund 12   12   12 Teamsters Benefit Trust 32   29   27 Teamsters Local 251 Health & Insurance Plan 10   10   10 Teamsters Local 404 Health & Insurance Plan 6   6   6 Teamsters Local 638 Health Fund 29   28   27 Teamsters Local 639—Employers Health & Pension Trust Funds 22   22   21 Teamsters Local 671 Health Services & Insurance Plan 12   13   12 Teamsters Union 25 Health Services & Insurance Plan 36   34   33 Teamsters Union Local 677 Health Services & Insurance Plan 8   8   7 Truck Drivers and Helpers Local 355 Baltimore Area Health & Welfare Fund 13   12   12 Utah-Idaho Teamsters Security Fund 16   15   15 Washington Teamsters Welfare Trust 32   30   27 All Other Multiemployer Health and Welfare Plans 55   50   52 Total Contributions $ 1,156   $ 1,103   $ 1,066