Originally Posted by
Kebert Xela
Maybe my thinking is incorrect but for someone starting out I personally don’t think fedex has the best. I know it’s a pension but it hasn’t been raised in benefit since 1998 I believe and in all likelihood won’t ever be raised again. In 25 or more years that benefit is significantly reduced due to the value of the dollar. I know they bargained for a DC as well so that could change things but I never crunched those numbers.
Maybe I’m wrong in that thought?
The challenge is in maximizing tax advantaged retirement dollars. A B plan is capped at $57k/yr right now. If you want more tax advantaged dollars towards your retirement, paid by your employer, a pension is the only option. Whether you are talking UPS’ pension plan or Fred’s they are each the equivalent of several million dollars socked away if you use the standard 3 or 4% withdrawal rates. Per ALPA, a Delta pilot would have to invest every profit sharing dollar and all cash over cap money (pre-tax somehow) to equal the retirement at UPS at 30 yrs. Due to the time value of money, the shorter your “career destination” career, the more important a pension becomes.