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09-29-2015 | 09:50 PM
#31
Gets Weekends Off
Joined: Jul 2007
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From: Captain
I would like to suggest that interested crew members review the FedEx 2015 Proxy Statement starting on page 45. I believe you may find the answer to why the corporation is never going to increase the $260,000 cap. The corporation maintains only one plan for everyone covered by the "Pension Plan" which we refer to as our "A-Plan". Page 45 will explain: "FedEx maintains a tax-qualified, defined benefit pension plan called the FedEx Corporation Employees' Pension Plan (the “Pension Plan”)." So if they change the cap for us they change it for everyone and they are not going to do that. The executives have found a way to work around the $260,000 cap through the "Parity Plan". Again refer to the Proxy Statement page 45: "FedEx also maintains a supplemental, non-tax-qualified plan called the FedEx Corporation Retirement Parity Pension Plan (the “Parity Plan”). Benefits under the Parity Plan are general, unsecured obligations of FedEx." Which we would refer as a "B-Plan" but with cash over cap. You want to see improvement in retirement, this is the avenue to pursue. But to many refuse to even entertain the thought. The company has been telling us since 2003 but we just haven't been listening.
09-29-2015 | 10:03 PM
#32
Thread Starter
Gets Weekends Off
Joined: Aug 2006
Posts: 4,184
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From: leaning to the left
I would like to suggest that interested crew members review the FedEx 2015 Proxy Statement starting on page 45. I believe you may find the answer to why the corporation is never going to increase the $260,000 cap. The corporation maintains only one plan for everyone covered by the "Pension Plan" which we refer to as our "A-Plan". Page 45 will explain: "FedEx maintains a tax-qualified, defined benefit pension plan called the FedEx Corporation Employees' Pension Plan (the “Pension Plan”)." So if they change the cap for us they change it for everyone and they are not going to do that. The executives have found a way to work around the $260,000 cap through the "Parity Plan". Again refer to the Proxy Statement page 45: "FedEx also maintains a supplemental, non-tax-qualified plan called the FedEx Corporation Retirement Parity Pension Plan (the “Parity Plan”). Benefits under the Parity Plan are general, unsecured obligations of FedEx." Which we would refer as a "B-Plan" but with cash over cap. You want to see improvement in retirement, this is the avenue to pursue. But to many refuse to even entertain the thought. The company has been telling us since 2003 but we just haven't been listening.
09-29-2015 | 10:14 PM
#33
Gets Weekends Off
Joined: Jul 2007
Posts: 101
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From: Captain
No solid number. But prior to 2003 everyone ever employed at FedEx that stayed until they were vested. Then between 2003 and 2008 those employees who did not opt out in 2003 were forced to a DC plan. Since 2008 the only employees added to the "Pension Plan" have been pilots. But rough guess...I would put the number north of 150,000 participants.
09-29-2015 | 10:19 PM
#34
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Gets Weekends Off
Joined: Aug 2006
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From: leaning to the left
No solid number. But prior to 2003 everyone ever employed at FedEx that stayed until they were vested. Then between 2003 and 2008 those employees who did not opt out in 2003 were forced to a DC plan. Since 2008 the only employees added to the "Pension Plan" have been pilots. But rough guess...I would put the number north of 150,000 participants.
09-29-2015 | 10:37 PM
#35
Gets Weekends Off
Joined: Jul 2007
Posts: 101
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From: Captain
The pilots are the only group still being added to the"Pension Plan". In 2008 all other employees were forced on to the DC Plan, including all management( to include executives, refer to page 46). When they froze the other employees pension they froze their high five. But there are other employees that have also made over $260,000 and they would benefit from the cap adjustment. What that number is I don't know. What I do know is that the pilot group is the only group of employees accruing benefits still and the corporation wants out of the DB business.
09-30-2015 | 03:32 AM
#37
"blue collar thug"!
Joined: Nov 2006
Posts: 1,614
Likes: 0
From: A proponent of...
So because we didnt raise it 2 contracts ago we shouldnt raise it now. I see. And the only possibility for them to raise it is if have a collective will.
As far as the lanyard goes, I have one for you. I know you have an I am an irrational spineless fearing short term gain with long term loss FedEx pilot lanyard.
A mouthful, eh! And, that ship seems to be sailing better than I have ever seen in my 18 years. Not meant to be a personal attack, but an observation.On a more serious note, your posts from the past made you sound so much different than now Lag. You seemed to have stood for more, IMO. What the heck happened?
09-30-2015 | 03:36 AM
#38
"blue collar thug"!
Joined: Nov 2006
Posts: 1,614
Likes: 0
From: A proponent of...
I would like to suggest that interested crew members review the FedEx 2015 Proxy Statement starting on page 45. I believe you may find the answer to why the corporation is never going to increase the $260,000 cap. The corporation maintains only one plan for everyone covered by the "Pension Plan" which we refer to as our "A-Plan". Page 45 will explain: "FedEx maintains a tax-qualified, defined benefit pension plan called the FedEx Corporation Employees' Pension Plan (the “Pension Plan”)." So if they change the cap for us they change it for everyone and they are not going to do that. The executives have found a way to work around the $260,000 cap through the "Parity Plan". Again refer to the Proxy Statement page 45: "FedEx also maintains a supplemental, non-tax-qualified plan called the FedEx Corporation Retirement Parity Pension Plan (the “Parity Plan”). Benefits under the Parity Plan are general, unsecured obligations of FedEx." Which we would refer as a "B-Plan" but with cash over cap. You want to see improvement in retirement, this is the avenue to pursue. But to many refuse to even entertain the thought. The company has been telling us since 2003 but we just haven't been listening.
09-30-2015 | 04:16 AM
#39
Gets Weekends Off
Joined: Aug 2005
Posts: 980
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From: Retired
“For accounting purposes, executive liabilities are no different from regular pensions and retiree health benefits. They’re debts, and can drag down earnings. There’s a critical difference, though. Unlike pensions (which employers fund) and 401(k)s (which employees fund), supplemental executive pension and savings plans are unfunded. This is due to taxes: If a company set up a pension fund for executives, it wouldn’t be allowed to deduct the money, and the assets wouldn’t grow tax-deferred.
With no pool of assets that are earning returns, which offset the annual interest cost on the debt, the IOUs for executives always have an interest cost, which can hit earnings hard. But guess which pensions get the blame?
Employers typically aggregate their regular pensions and executive pensions when reporting pension liabilities and costs, so even if the only costly pensions are for the executives, the public doesn’t know. Nor do many analysts, whose reports overstate the amount of underfunding, because the pension obligations include executive pensions, which aren’t funded. The data, which comes from SEC filings, also includes pensions at companies like Nordstrom. Its pension tables indicate that it owes $102 million in pensions and is 100 percent underfunded. That’s because[…]”
Excerpt From: Ellen E. Schultz. “Retirement Heist.” Portfolio/Penguin, 2011-09-15. iBooks.
This material may be protected by copyright.
Check out this book on the iBooks Store: https://itun.es/us/nuBWw.l
With no pool of assets that are earning returns, which offset the annual interest cost on the debt, the IOUs for executives always have an interest cost, which can hit earnings hard. But guess which pensions get the blame?
Employers typically aggregate their regular pensions and executive pensions when reporting pension liabilities and costs, so even if the only costly pensions are for the executives, the public doesn’t know. Nor do many analysts, whose reports overstate the amount of underfunding, because the pension obligations include executive pensions, which aren’t funded. The data, which comes from SEC filings, also includes pensions at companies like Nordstrom. Its pension tables indicate that it owes $102 million in pensions and is 100 percent underfunded. That’s because[…]”
Excerpt From: Ellen E. Schultz. “Retirement Heist.” Portfolio/Penguin, 2011-09-15. iBooks.
This material may be protected by copyright.
Check out this book on the iBooks Store: https://itun.es/us/nuBWw.l
09-30-2015 | 04:16 AM
#40
Gets Weekends Off
Joined: Aug 2012
Posts: 711
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You should have received a pension mailer in just the past week or so. Open it. Look at the funding tables. Federal law is providing the company relief.
The DB is only dead if we allow it to be.
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