Originally Posted by
Fdxlag2
Isn’t one of the advantages of the stable variable plan that the PBGC fees are reduced? Do they make up the difference in volume?
That is what they use to try to sell the plan, but it isn't exactly true. The PBGC fees are only reduced if the company planned on underfunding our current DB plan. Otherwise, the fees are exactly the same for both plans. The benefit for the company is that they don't have to make extra contributions to fund the VB plan if the market under performs, unless they agree to pay for some sort of floor benefit. But, we could help by capping the returns and smoothing out market performance. And the pyramid scheme begins.