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<blockquote data-quote="Oldfart" data-source="post: 2384324" data-attributes="member: 64407"><p>I have never understood how anyone with a number of years of service could even complain about the addition of the Portable Pension Plan. First of all we have a pension. Do you realize that ONLY 4% of Fortune 500 companies even have a pension as a single source of retirement. ONLY 14% of Fortune 500 companies offer a PENSION and a 401K.</p><p></p><p>Now look at the addition of the Portable. In case you never understood, the TRADITIONAL pension maxed out after 25 years. I was sitting on a pension that did not increase for several years as a result of the 25 year max. That means after 25 years, your monthly pension upon retirement was frozen at a set amount. With the addition of the PORTABLE, my traditional is still frozen at the 25 years rate, but I am also building a sizeable cash value account that will be mine upon retirement. The company contributes 8% to the portable. I know there was a 4% bump for some but it has been almost 13 years since I enrolled so I forget the specifics. That account is drawing 4% interest each year on top of the 8% the company contributes. Ask any money man about a cash account drawing 4% risk free every year and they will tell you to jump all over it. That rate of return is almost unheard of in today's low interest rates. That account will continue to draw that return even after you retire and until you withdraw it. I am presently sitting on almost 20 months of base salary in my portable. So I am getting 8% invested and that investment is drawing 4%. That looks like I am getting 12% of my yearly salary invested totally by the company. Add that to the 3.5% 401k match and I am getting 15.5% invested for me by the company. In addition, the portable pension is payable to anyone you want, regardless of who they are. The traditional pension is only payable to a spouse. So unless I am mistaken, an unmarried employee will basically lose their traditional pension when they die. Their portable will go where ever they designate. Anyone that thinks the portable pension was a bad move must not have had all the facts. I will be collecting a little under 135k from my portable when I leave in a couple of years. Not a bad addition to my 401k and my monthly traditional pension I will be getting.</p></blockquote><p></p>
[QUOTE="Oldfart, post: 2384324, member: 64407"] I have never understood how anyone with a number of years of service could even complain about the addition of the Portable Pension Plan. First of all we have a pension. Do you realize that ONLY 4% of Fortune 500 companies even have a pension as a single source of retirement. ONLY 14% of Fortune 500 companies offer a PENSION and a 401K. Now look at the addition of the Portable. In case you never understood, the TRADITIONAL pension maxed out after 25 years. I was sitting on a pension that did not increase for several years as a result of the 25 year max. That means after 25 years, your monthly pension upon retirement was frozen at a set amount. With the addition of the PORTABLE, my traditional is still frozen at the 25 years rate, but I am also building a sizeable cash value account that will be mine upon retirement. The company contributes 8% to the portable. I know there was a 4% bump for some but it has been almost 13 years since I enrolled so I forget the specifics. That account is drawing 4% interest each year on top of the 8% the company contributes. Ask any money man about a cash account drawing 4% risk free every year and they will tell you to jump all over it. That rate of return is almost unheard of in today's low interest rates. That account will continue to draw that return even after you retire and until you withdraw it. I am presently sitting on almost 20 months of base salary in my portable. So I am getting 8% invested and that investment is drawing 4%. That looks like I am getting 12% of my yearly salary invested totally by the company. Add that to the 3.5% 401k match and I am getting 15.5% invested for me by the company. In addition, the portable pension is payable to anyone you want, regardless of who they are. The traditional pension is only payable to a spouse. So unless I am mistaken, an unmarried employee will basically lose their traditional pension when they die. Their portable will go where ever they designate. Anyone that thinks the portable pension was a bad move must not have had all the facts. I will be collecting a little under 135k from my portable when I leave in a couple of years. Not a bad addition to my 401k and my monthly traditional pension I will be getting. [/QUOTE]
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