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Old 03-31-2021, 08:08 AM
  #28  
USMCFDX
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Joined APC: May 2006
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Originally Posted by Tuck View Post
The company's target in the pension fund is around 6%. I would suspect that ours will be similar - however there are outlier years where you make far more than the target...also years where you make far less. The model has gone through extensive Monte Carlo simulations so the "luck" is about the same as your current DB fund getting what it gets.

I 100% agree with you that pilots do not understand the plan. The conservative return targeted was explained well in every by the briefers - I've never heard anyone saying it would be targeted higher - in fact, it's very conservative (more than the Company's actually) and that gives me a decent amount of confidence. And even with that conservative targeting it still reaches the numbers in the calculator. Did you attend any of the small group meetings about the PSPP?
Tell me what year that the FedEx fund made far more than the target. Pretty sure the best year was 9% once!, and plenty of zero and 1% years. Read anything about large scale retirement plans and the target and expected rates are now closer to 3%. The FedEx data is available online and I have posted it on here before.

This pancake plan will not see 10% returns.

I have read everything the union has put out about the pancake plan - I hate it and it is an automatic no vote from me. PM loves pancakes and we are stuck with it. I only hope enough people hate it and vote the TA down in 2 years.
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