HIFLYR

I never answer the call from CRS unless I am contractually required too when working, especially on RSV. In my experience if it’s good they will leave a msg.

SaltyDog

Not Purple, pardon the intrusion, but what are the FedEx demographics? important in any negotiation to properly focus needs and resources. Not looking for anything actually posted, that's for your pilot group to understand. Would throw a guess most new hires are not in 20's or 30's. Our median age is in the low 50's and includes lots of 40's+ new hires. Only about 10 percent actually in 30's. Additionally, DBP plans are funded in a manner that can survive the demise of our profession. Much depends on how it is contractually arranged. Certainly could go like the DOD and split new folks off into a separate retirement plan as of XX date. Current folks keep same plan, new folks get a "blended" plan, regardless of age. I want to keep my DBP at my current abode though. DCP takes care of individual investing styles.
Good negotiations. We all need each other backs in the industry.
SD

kronan

Have to laugh at this one.

Because you know, improving the FAE calculation does absolutely nothing for the 25+ year crowd.
Switching over to the Big B Cash over Cap B plan I hear a few folks saying we should pursue does absolutely nothing for the 25+ year crowd (reality is that a Big B plan doesn't come close to matching the value of our current Mix)
;-)

We're not Cashing in or trading one plan for another.
Just trying to come up with a different way to calculate future benefits.

Podcast outlined a change\improvement previously undiscussed, and not modeled in any way by "The Modeler". But one in which those folks who choose Seniority over $$, choose to work 70% of their line, would still wind up with the Same FAE*2% calculation we have now.

IOW-(S) VBP has a new line inserted into how your Benefits would be calculated.
We have the Pension Benefit being the Greater of the Value of our Pancakes * asset value (the secret sauce of Market returns in excess of 5%) OR the Accumulated Floor benefit (2% of W2 compensation added up year by year) OR The greater of our (S) VBP + Frozen A plan compensation as compared with the YOS*FAE*2%.


Again, comments made that there's NO way such a lookback provision is affordable and Mgt Will Never agree to it.

Seems diametrically opposed to the comments that the (S) VBP is a HUUUUUGGGGE give away and Mgt is salivating as they contemplate the savings to be gained.

Which then goes onto the We Need to Fix our current A plan by upping the FAE cap and YOS.

kronan

We're like you in that our ages vary. We have some folks, many AD retirees who're hired late 40s or early 50s.

2-3 years ago we received the actual demographics\current Pension actuarial data, but it's covered by an NDA.

So, no true way for a lineswine guy to evaluate the various options bandied about on the internet. Only the Union gurus were given a peek behind the curtain, and they opted for a Variable Benefit option.

Leaned away from the FDA calculation UPS uses for a one and done method versus needing to renegotiate it each year.

kronan

And SaltyDog,

no need to apologize for the Intrusion. Can't think of a single comment\post you've made that hasn't been worth reading.

Fdxlag2

Add the words “today” to your statement and you are correct. But 25 years from now the $260k capped A Plan will be worth about $80k annually in 2045 dollars. That is the whole reason we are having the discussion about giving away our A Plan. And again the big cash plan has other values that a stack of pancakes does not.

FrankTheTank

Keep chasing those rainbows...

golfandfly

I’m sort of having a problem understanding your point here.

I’m for higher FAE or higher multiplier, significantly increased B plan, and/or a real profit sharing plan. The Variable plan is a turd that most people don’t want. If we’re still paying Blitzstein and Cheiron, let’s stop now.

I still want to know the cost to change the high 5 from 260k to 300-320k. If the numbers are truly impossible, let’s see them and move on to other tried and true ideas.

MEMA300

Our original A-plan paid out about 90k a year but had a COLA. so we r right back where we started...but without the COLA. we play checkers while they play chess.

kronan

25 years from now the A plan will still pay 130k, just will be attainable with NB FO pay and the FAE cap will probably be achieved by year 7
:-)

B plan contributions will continue to grow along with the DC limit.

Frozen A plan plus Growing B plan contributions still exceed even that of a 20% B plan only.

Assuming a 4% withdrawal rate, need a 29% B plan to equalize the same Cash flow in retirement 25 years from Now. (Doesn't Take taxes into consideration though, and assumes every penny of that 29% gets saved somehow)

Yes, all of the B plan cash is yours to leave to your heirs in a way A plan pension payments are not.

But, Pension payment is for life. Quite possible to spend all of your B plan cash and wind up with one heck of a lifestyle change. People can spend an amazing amount of money. Even worse, Elder scams aren't all that uncommon.

Want to leave more money for your heirs? Dedicate X dollars out of your Pension to buy non-dividend stocks such as BRKB in a brokerage account with your heirs as beneficiaries so that they can take advantage of the step-up provisions (assuming those still exist in 25 years)

Can't outlive a stack of pancakes.