FedEx to Modernize Retirement Plans?!?!?!?!
02-27-2007, 12:39 PM
#11
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Originally Posted by boxboy
Kinda scary to see the retirement plans of thousands of drivers mechanics and hubites tossed with the stroke of a pen. rest assured we're the next target
02-27-2007, 12:56 PM
#13
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Originally Posted by hyperone
The way the company press release reads, you'd think this change to the company's retirement plan is the best thing since sliced bread for the average employee. It looks like what is actually going on is a cost reduction for the company for its pension obligations. I would love to know what the net effect will be on the average mechanic's (and other Fedex employees) annual retirement income. Anyone smart on a retirement restructuring like this? Anyone think the average employee will understand the implications of today's action on their retirement?
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
02-27-2007, 01:17 PM
#14
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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.
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.
02-27-2007, 01:32 PM
#15
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Originally Posted by boxboy
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.
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.
Last edited by FDXLAG; 02-27-2007 at 02:02 PM.
02-27-2007, 02:31 PM
#17
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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?
You see why it is so important to maximize your earnings early in this business?
02-27-2007, 03:38 PM
#18
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Originally Posted by FDXLAG
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.
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......
02-27-2007, 04:14 PM
#19
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Originally Posted by RedeyeAV8r
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......
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......
Last edited by FDXLAG; 02-27-2007 at 04:20 PM.
02-27-2007, 04:42 PM
#20
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Originally Posted by boxboy
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.
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.
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.
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