The FedEx Freight Pension Plan will be merged into the FedEx Corporation Employees’ Pension Plan (the FedEx Pension Plans) effective May 31, 2023. The Summary of Material Modifications (SMM) and Frequently Asked Questions (FAQs) covering the merger of the FedEx Pension Plans are now available. FedEx is required to provide the SMM to all participants in the FedEx Pension Pension Plans. The SMM and FAQs can be viewed when you log on securely to your account at digitial.alight.com/fedex. From the home page, select the Plan Information link then select ‘Pension Plans Merge / Summary of Material Modifications & FAQs’ under Summary Material of Modification (SMM). If you have any questions or require a paper copy of the Notice, please contact the FedEx Retirement Service Center at 1.855.604.6221 from 8 a.m. to 6 p.m. CT, Monday through Friday. You can access information about your FedEx pension benefit online at digital.alight.com/fedex. NOTE: This content applies only to any employee eligible to participate in the FedEx Corporation Employees’ Pension Plan or the FedEx Freight Pension Plan, herein collectively referred to as the FedEx Pension Plans, as of December 31, 2019. FedEx retirement plan benefits are based on formal plan documents or contracts. If there is a conflict between these communications and the official plan documents, the plan documents always govern. You are not entitled to retirement plans benefits due to a misstatement in or omission in the referenced materials. In general, FedEx reserves the right to amend or terminate any benefit plan at any time and for any reason. |
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If Fred could access any part of your pension, he would. Please remember this is the guy who used the passenger airline crisis to kill your Traditional pension because he had an “airline “ too. Never mind that there was no crisis at FedEx.There is a provision whereby when a company can prove that they have over funded their pension plan they can apply to withdraw the excess amount. Can't say for certain that this was the case with JD and WB but it sounds like it.
Now when you think about it there will likely be a larger number of Express retirees drawing benefits out of the pension plan. That comes at a time when it all goes "according to plan" (lol) you'll have a much smaller FDX Express. By the looks of things Freight is now being encumbered with having to provide revenue support for a plan from which not their own employees will be drawing benefits but all of those Express retirees as well. Only question is whether or not Express after the restructuring will continue to provide economic support for the merged plan .
You guys who spotted this coming can take a bow. In the end a drastically downsized Express will jettison or force into retirement all of it's veteran full time employees and will replace them with low wage, zero benefit throw away temporaries and with the minimum driving age now or soon will be 18 this thing is becoming ever more what you said it's going to become.
I know you guys know more about this than I do but this seems in keeping with what you guys are saying and that is that there never really was an actual conversion plan in place and everything is a spur of the moment quick fix and this latest "rabbit out of the hat" trick is even more bizarre given that just a few years ago plans were well underway to sell Freight to Old Dominion.
I was talking about the portable. I elected to stay in it back in 2019-2020 and did not take the increased 401k match. I don’t see how legally they can come in and take money out of our portable accounts that have already been accrued short of going bankrupt. I think they definitely want to get rid of it going forward all together, but I don’t see them trying to come in and literally steal money from employees pensions.So this is for the Portable pension and not the traditional pension, that Fedex sent all the liabilities of that to MetLife back in 2018. FedEx is not in charge of the traditional anymore, so them getting their hands on that and buying Bud Lite is out of the question.
As far as the portable. they are trying to shut that down anyways, as its not even offered to new hires. probably bundling the Express and Freight pension will allow them to sell that off to another insurance company and FDX can wash their hands of any pension liabilities. You know eventually they will force any employees that did not opt out of the portable when they offered it, into the higher 401k match program here in the next few years.
I don’t think there is anyway they can legally touch our pension monies we have already accrued, or at least it would be very hard to do so if even possible. They could definitely change it going forward if they decide to just eliminate it all together, but for them to outright steal the money we have earned already I just don’t see it being done legally.
I’m to embarrassed to tell youCorporations can merge traditional pension plans. They can transfer total assets from one plan to another or start you in another new plan all together. Your previous vested years are protected under ERISA laws, they cannot steal those promised assets even if they are going out of business. Also they cannot transfer you into an inferior plan on paper, even though it eventually could happen, future benefits are never guaranteed and can change anytime.
UPS did recently eliminated any future accruing with their management plans, replacing it with a matching 401k. All those years prior to that shift are guaranteed once they hit that magical 65 age requirement. Their management plans were always well funded and originally set up to reward the higher ups, they will suffer less than the grunts in operations.
I do not know how your plans works, do they stop accruing at a certain service level like 25 or 30?
Partially wrong. It depends on how much you made since 2008 (or if you started later), since a percentage of that goes in. I transferred mine to an IRA when I left. It was 6 figures.Friendly reminder the Portable Pension is a “better than nothing” severance if you will. That if and when you opt to receive a lump sum payment; you will have enough money to buy a Toyota Camry.
When closing out a qualified plan the individual has 60 days to roll the principle into another qualified plan such as an IRA or the full amount will be taxed at the prevailing rate plus a penalty of 10% of the withdrawn amount.Correct me if I’m wrong, you don’t simply roll in over to an IRA of your choice? FedEx has sway over exactly which IRA your rollover goes to?
Ah, eff the 98k. Buy a Toyota Supra.
I rolled mine over to my personal IRA.I guess I’ll be taking my pension in slump sum. If still available.
I don't think you need to worry. The pension is handled by MetLife.I guess I’ll be taking my pension in slump sum. If still available.
You can roll it into any IRA of your choice. If it's a traditional IRA, there's no taxes or penalties. If it's a ROTH, it will count as income for the year, and you will pay taxes on it.Correct me if I’m wrong, you don’t simply roll in over to an IRA of your choice? FedEx has sway over exactly which IRA your rollover goes to?
You can withdraw from your 401K at 55, penalty free. I can't seem to find a clear answer on whether the pension would be penalized the 10%.When closing out a qualified plan the individual has 60 days to roll the principle into another qualified plan such as an IRA or the full amount will be taxed at the prevailing rate plus a penalty of 10% of the withdrawn amount.
There are exceptions however regarding disability and other circumstances.
Maybe a used 5 year old Camry, after 8 years I had 24k in it lolFriendly reminder the Portable Pension is a “better than nothing” severance if you will. That if and when you opt to receive a lump sum payment; you will have enough money to buy a Toyota Camry.
Ouch. Future prediction had mine at 113k in 15 more years. With tax and inflation, that ain’t crap. I’ve been hoarding cash planning an escape.Maybe a used 5 year old Camry, after 8 years I had 24k in it lol