BINGO , but they were many of the same employees that Ralled against the pilots on Democrat 1n 1998................Maybe some of them might learn the value of a Union negotiated Contract.

they can ponder that when they are sitting in our jumpseats while opening their profit sharing checks!!


NOT!

Hyperone,
I know a little about it and I'm sure the average employee has little idea of the implications of what just happened. and for most it's too late to make a correction.
Whats happening basically (very basically) is there A plan is being replaced with a 6 or 7% B-plan. Whats in the A-plan is frozen and will not add years of service any more.
I venture most employees barely have been putting enough into there 401K to meet the $500 company match and are years behind in retirement planning. Most other employees don't make enough to drop 10 or 12 thousand into the 401K every year there on a shoestring. This will be devistating to a 50 year old employee with 20 or so years of service.
A young newhire can still make this work but for the old timers it's a mess.
Sorry to be so long winded

A little example a mechanic who has been here 20 years and is 55 years old.
Has a high 5 or 100K per year was expecting 50K per year at retirement age of 60. He will now be lucky to get 40K per year a 20% reduction over a lifetime. You can't recover from that.

No but if he can put 10% of the next 5 years 100K into a good 401K he can recover a lot of it and it is his money. Or his trophy wife's money if he (or fred) keels over at 61. Defined Benefit plans are going away I am glad FEDEX is taking positive financial step to improve their bottom line 15-20 years from now.

Any idea how much "higher company match" is? It would only take $500 to be 100% better. :rolleyes:

I'm 40, and I consider my A plan to be worthless. There is NO WAY the MBA's in Memphis haven't watched the passenger airlines over the past few years. They'll come after us soon. Some dogsh!t deal like this one, maybe even tied into the over-sixty debacle that is on the horizon.

You see why it is so important to maximize your earnings early in this business?

What your missing here is that the 10% you are refferring to is out of his salary...............The A plan was differed compensation that the company just took away.
With his A plan (the old one) he still could have put a that extra 10% you are talking about...............

Bottom line it is a mjor screw job for the Fedex employeess......

I know what 10% I was talking about. What you are missing is there is a 7% DC plan and an increased 401K matching so it is Freds. But I do hope ALPA gets us a better DC plan before we lose the DB plan.

Now imagine a United captain who has worked there for 30 years. He was expecting somewhere in the 180k-200k range at retirement. Now he's lucky if he gets 30K. A huge, huge reduction in benefits. As well, where the mechanic described above can probably work past 60 if he so desires, currently that same United captain must stop work the day before his 60th birthday. So you tell me, just based on the numbers, whose in worse shape? How do you recover from that?

By the way, for someone whose pension was taken back (stolen) in 2005, the maximum benefit for someone that retired at 65 was $45,614 a year, whereas if one retired at age 60, the maximum was $29,649. The above from the Federal Pension Benefit Guaranty Corporation.