Originally Posted by
kronan
Call them pancakes, call them waffles, call them crepes.
Whatever name you use, they’re not stocks, not a mutual fund, not bonds. Just a ‘notional’ investment in the pension trust fund, which is invested in various ways.
As designed, the value of your notional investment is never less than the value you ‘invested’.
That’s why it’s called ‘a floor’.
If the floors 2%, and you earn $285,000, the value of your pancakes will never be less than $5,700.
If we negotiate a 2.1%, or 2.2%, value would be greater than that.
(For those scoffing at such a small increase, look back in time at the fury some have over similar pension multipliers written in to previous CBAs to offset B plan improvements)
YOS no longer capped.
And it’s still a Pension fund, with all of the same basic protections our current A plan has.
Should stock markets implode, ala the Great Depression, if Pension payments are in jeopardy, FedEx legally obligated to provide the necessary funding.
Or enter bankruptcy and get a judge to agree that suspending pension funding is essential to FedEx surviving.
What if the line in the sand is a 1% floor, or no floor at all? As you have pointed out, that floor has to be negotiated and isn't required by the VB plan or whatever moniker they decide to use to try to put lipstick on that pig.
We can get more into how much of our A plan would be covered under the PBGC if this new plan is pushed through, but most won't like the answer since only one of the plans can be covered.