Originally Posted by
kronan
A VB is NOT a Defined Contribution plan.
A DC, like our B plan, accumulates a set value and when you start Spending out of it...when it’s gone, it’s gone.
The VB is Still a Pension plan. “Your” funds never run out.
Which is why they are still covered by the PBGC, where our B plan is not.
The VB is a hybrid plan
True, Your “Variable Benefit” never runs out - but the company’s contribution is most certainly “defined”
Your “Variable Benefit” only increases when the plan overperforms, decreases when the plan underperforms
FedEx only loses when our collectively, FedEx pilot, longevity overperforms
Work harder, work longer = greater longevity ??
Man, I wished it worked that way.