rvfanatic

As you're probably aware, purple stock is taking a huge beating lately. This is part of what was released today along with earnings below forecast.

Cost-Reduction Actions
In addition to lowering variable compensation, FedEx is implementing other cost-reduction initiatives to mitigate below-plan performance. These actions include:

• A voluntary buyout program for eligible employees
• International network capacity reductions at FedEx Express
• Limited hiring in staff functions
• Reductions in discretionary spending
• Efforts to improve productivity will continue, including expanding the use of technology and capitalizing on efficiencies available through network scale.

https://www.streetinsider.com/Earnin.../14934836.html

Fdxlag2

And day old shrimp at the buffet.

MD11HOG

Opening paragraph "From FedEx is unable to forecast the fiscal 2019 year-end mark-to-market (MTM) retirement plan accounting adjustments"
From 2015: https://www.auditanalytics.com/blog/...ark-to-market/
So, they adopted a fancy new accounting method for retirements and now it's causing problems. A whole accounting firm can't figure out the mess and I don't think a retirement advisor and a pilot can get it right either.

HDawg

Maybe we should read a book about retirement income written by a guy no one ever heard of and tell the company we want to give away our A plan, that should help.

kronan

Unable to forecast MTM Pension predictions and you’re slamming the VB plan...in case you haven’t noticed
During the past 3 months stock markets been pretty volatile.
DOW’s bounced from 26,893 to 23,675
S&P from 2934 to 2546

Shoot, over the past quarter FedEx bought 2.8M shares of FedEx at an average price of $228.30 and today’s close was 185. Doing that math means FedEx “paid” 639.38M for stock that’s “worth” 518.028M today.

And even with all of those big number losses, the biggest impact will be the funding level of our Pension assets...no impact on the actual pension checks.

And if the VB had been implemented a year ago for those retiring Dec 31st. Their Floor Pension check would be 2% of their pensionable earnings...not 2% plus a little bit of market return above 5%...simply the floor benefit

And their Legacy A plan check wouldn’t be impacted at all.

This market uncertainty is one reason FedEx was so adamantly opposed to improving our Legacy Pension last time.

kc10/c130

That's why you keep your pension and cash the checks while sipping umbrella drinks from your Sailboat in the Caribbean. No VariableScamPlan for me. Don't even peddle that my way.

TonyC

And it's exactly why we should be opposed to assuming the risk of market uncertainty ourselves.






.

StarClipper

Are you even listening to yourself? So if I’m understanding you correct, even in a down market the VB Plan is better? If that’s your position, you sure need to visit a psychologist.

Raptor

The stabilization fund has to be paid for somehow. Mediocre returns for several years that don’t fund the stabilization fund could be a problem. What I worry about with the concept is that the stabilization fund could become like social security—under funded and paid for by current workers. In a system like that, there is a good chance the fund or VRB itself could go insolvent?

kc10/c130

Raptor-

This is exactly what will happen. I truly hope we don't fall for the new, latest, and dressed up turd. But there is truth behind the phrase "A fool and his money are soon parted".