Originally Posted by
Recliner
Assuming future contracts bring future Brown retirees up to current Brown retiree pension numbers.
How does FedEx compare with that aspect of the pension? Is a future retiree exact pension payment uncertain like Brown's?
The flat dollar multiplier will apply to everyone as they get older and the age group captures them. It is purely an accounting issue.
Fedex hasn’t had a pension benefit increase in years. Hopefully it will get addressed in any future TA (not a pancake plan ). The easiest change would be to raise the $260k earnings cap, leave all else the same. Even a “small” cap increase to $320k yields a $30k difference per year additional benefit, about a 23% increase. This 23% increase may on the surface seem like a lot, but that benefit has been unchanged for 20+ years I believe?