Originally Posted by
BobZ
What about survivorship discount on earned benefit?
So if i understand each year of service you will accrue an additional 1/25th of the presently capped benefit of 130k/yr?
Retirement benefit contemplations are part math and part crystal ball. Unfortunately we usually have to wait till the end of the day to check our results.
30yrs ago fedx was my 1st choice, but it wasnt because of the retirement. Given the road i did travel, being a new pilot today i would value having my retirement in my hand and in my name over any blind trust owned by my employer.
A year2 fo at delta gets 16% from the company. The last 2 years he has also gotten another 30%+ in profit sharing. Which also gets the 16% kick in from company.
And in the event of a ltd event his 50% fae has no dollar maximum cap, and the company kick in goes from 16% to 32%.
Its all in his name. And will pass through to heirs at 100% dollar value.
Its a guess at best we make, and its never as simple as it seems.
Bob,
Yes it has a survivorship benefit and its not owned by the company its funded outside. This was part of the government regulation pasted to protect pensions. It seems you are in love with the market based investments currently and I don't blame you with the way the market is going, however ask what a purely market based retirement looked like from 2004-2015. Belive me purely market based investments also carry many risks and I'm sure you know many who pulled out of the market after taking a 40% hit in the down turn. The thing I like about FedEx is they have the best of both worlds. They have the A plan (130k a year) and the B Plan which is a 9% DC. It does what any investment professional will tell you to do "Diversify".
The value of the "A" plan is 34k annually if it was converted into a DC style contribution and this is assuming a 6% market growth year over year. This market won't last forever and as a Guy who has 30 years left I'm sure I will see another big market fall. As for the profit sharing its a "crystal ball" as you call it. Do you think any airline will be massively profitable for the next 30 years straight? Don't get me wrong its nice to get it but I'm just using the same positions you take to apply it to the Delta plan.