Originally Posted by
hyperone
The way the company press release reads, you'd think this change to the company's retirement plan is the best thing since sliced bread for the average employee. It looks like what is actually going on is a cost reduction for the company for its pension obligations. I would love to know what the net effect will be on the average mechanic's (and other Fedex employees) annual retirement income. Anyone smart on a retirement restructuring like this? Anyone think the average employee will understand the implications of today's action on their retirement?
Hyperone,
I know a little about it and I'm sure the average employee has little idea of the implications of what just happened. and for most it's too late to make a correction.
Whats happening basically (very basically) is there A plan is being replaced with a 6 or 7% B-plan. Whats in the A-plan is frozen and will not add years of service any more.
I venture most employees barely have been putting enough into there 401K to meet the $500 company match and are years behind in retirement planning. Most other employees don't make enough to drop 10 or 12 thousand into the 401K every year there on a shoestring. This will be devistating to a 50 year old employee with 20 or so years of service.
A young newhire can still make this work but for the old timers it's a mess.
Sorry to be so long winded