Fedex Pilots proposed retirement plan
#541
The problem lies in Guarantee\per year.
As I understand the premise of a VB, There IS a built in Guarantee, and what that Guarantee Level is would depend upon what We negotiate. What level of Investment Risk We collectively decide we could tolerate. Minimal Risk could likely equate to a Guarantee near or At the 130k, but that would mean minimal Reward above the 130k level as well.
And Anyone with even a resemblance of fiduciary duty will pretty much never use the word Guarantee anywhere near any Investment...and I would recommend Running, not Walking, from any Advisor that Does Guarantee a return.
I can Guarantee that Stocks historically return better than Bonds and better than Cash, but there have been periods of time where the Reverse is true as well.
But I know where I want to place my Chips
As I understand the premise of a VB, There IS a built in Guarantee, and what that Guarantee Level is would depend upon what We negotiate. What level of Investment Risk We collectively decide we could tolerate. Minimal Risk could likely equate to a Guarantee near or At the 130k, but that would mean minimal Reward above the 130k level as well.
And Anyone with even a resemblance of fiduciary duty will pretty much never use the word Guarantee anywhere near any Investment...and I would recommend Running, not Walking, from any Advisor that Does Guarantee a return.
I can Guarantee that Stocks historically return better than Bonds and better than Cash, but there have been periods of time where the Reverse is true as well.
But I know where I want to place my Chips
#542
Gets Weekends Off
Joined APC: Nov 2016
Posts: 936
...
Back on see-saw slide #1, the narration discussed vague consequences resulting from contribution requirement increases. These include:
Wage freezes
Reductions to other benefits
Plan Freezes
Really????? Some of us have actually experienced these things first hand, ...
Back on see-saw slide #1, the narration discussed vague consequences resulting from contribution requirement increases. These include:
Wage freezes
Reductions to other benefits
Plan Freezes
Really????? Some of us have actually experienced these things first hand, ...
#543
Gets Weekends Off
Joined APC: Mar 2012
Position: Two Wheeler FrontSeat
Posts: 1,162
One could argue that we have the most expensive pension in the industry and it is why our wages are slightly lower, our B Plan is slightly lower, and our A plan is capped and frozen at the same level since 1996. At least one could make that argument if they were at all interested in educating us on how much our plan actually costs. But they consider their role to be salesmen not educators.
#545
Gets Weekends Off
Joined APC: Aug 2006
Posts: 1,820
#546
Gets Weekends Off
Joined APC: Aug 2006
Posts: 1,820
The only guarantee level this plan has is what the PBGC pays out. This is the same with the current plan.
#547
Gets Weekends Off
Joined APC: Mar 2012
Position: Two Wheeler FrontSeat
Posts: 1,162
#548
The current plan pays a guaranteed level unless some pretty dire circumstances come to pass and the PBGC steps in. Not quite the same case as the variable plan which, in addition to the risks guaranteed by the PBCG, must also weather the vagaries of the market which might result in a lower pay out even without the PBGC.
#549
Gets Weekends Off
Joined APC: Aug 2006
Posts: 1,820
The current plan pays a guaranteed level unless some pretty dire circumstances come to pass and the PBGC steps in. Not quite the same case as the variable plan which, in addition to the risks guaranteed by the PBCG, must also weather the vagaries of the market which might result in a lower pay out even without the PBGC.
#550
The problem lies in Guarantee\per year.
As I understand the premise of a VB, There IS a built in Guarantee, and what that Guarantee Level is would depend upon what We negotiate. What level of Investment Risk We collectively decide we could tolerate. Minimal Risk could likely equate to a Guarantee near or At the 130k, but that would mean minimal Reward above the 130k level as well.
And Anyone with even a resemblance of fiduciary duty will pretty much never use the word Guarantee anywhere near any Investment...and I would recommend Running, not Walking, from any Advisor that Does Guarantee a return.
I can Guarantee that Stocks historically return better than Bonds and better than Cash, but there have been periods of time where the Reverse is true as well.
But I know where I want to place my Chips
As I understand the premise of a VB, There IS a built in Guarantee, and what that Guarantee Level is would depend upon what We negotiate. What level of Investment Risk We collectively decide we could tolerate. Minimal Risk could likely equate to a Guarantee near or At the 130k, but that would mean minimal Reward above the 130k level as well.
And Anyone with even a resemblance of fiduciary duty will pretty much never use the word Guarantee anywhere near any Investment...and I would recommend Running, not Walking, from any Advisor that Does Guarantee a return.
I can Guarantee that Stocks historically return better than Bonds and better than Cash, but there have been periods of time where the Reverse is true as well.
But I know where I want to place my Chips
The answer was clearly NO, but it was painful to watch KB struggle with his inability to admit this and instead tell us how it almost, nearly 99%, all but guaranteed, the market always goes up, dogs would have to sleep with cats, end of the world type stuff only could prevent you from getting $130K.
Yet they claim they are not selling this plan. His claim is that our risk of losing the current A plan due to FedEx going bankrupt is orders of magnitude greater than the risk of the market ever declining. BUT, in the unlikely event it ever did, especially just before you were forced to retire at age 65, you could always defer your retirement a few years while the market recovered and then start your benefits. So we would have that going for us, which is good.
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