Originally Posted by
FXDX
Man you have really swallowed the hook. Its a ****ing model, of course it will show a benefit. What you don't seem to get is a lot of us don't trust the model or the union to negotiate this deal nor do we want to release the company from their liability to provide us with a minimum fixed benefit after retirement. I don't care if you could possibly double the benefit, I am not willing to accept any more market risk for my A fund.
I don't have a single high 5 yet, and only have 5 left to work at most. Let me get those high 5 and I can double my benefit as it stands right now. And that is guaranteed. Freeze it now and MAYBE I can add at most a couple of grand to my annual benefit by taking on all of the market risk, no thanks.
Trust this union to negotiate a deal like this and trust the company to not exploit it, not in a million years.
Well said. See, this is the problem when you try to change the rules mid game. People have made decisions and plans based on the assumption that the A Plan would be there. If the plan gets improved...even better...be we all assumed FedEx would remain in business and we would have our guaranteed benefit. With that baseline, we all made decisions...decisions on QOL vs money...decisions on upgrades...decisions on how to fund other retirement investments.
Just a reminder that FedEx is not in bankruptcy and they plan on paying me the retirement that I signed up for. It is not perfect by any means but it is the one I signed up for. What continues to get me is the company is not trying to default on the pension obligation...my MEC is!
I agree that the A Plan has its faults and maybe the company will never improve it. But that does not mean you freeze it...you supplement it and you definitely don't pull the rug out from under guys in the middle who stand to lose money as a result.