Originally Posted by
MD11Fr8Dog
Of course they sold it that way, but the employee does not have that money right now, like you do with your 401k, its still a defined benefit as opposed to a defined contribution.
Cash Balance Plan
What you are talking about, the Cash Balance Plan, replaced the non-pilot A-plan many years ago. The 401K plan was changed 1-2 years ago, and is the plan referenced in todays news. FDX matches the 1st 1% and half the next 5% of salary that a non-pilot employee contributes. As long as an employee contributes at least 6% of their salary, Fred was matching 3.5%. That is what the average employee loses. Using my SO as an example, that's about $1800 year, plus the 5% salary cut and no merit raise this year.