FedEx Pension lies

[fedex_rtd]

So I decided to take a look at the FedEx pension site tonight retirement.fedex.com

What I noticed is that the "estimates" are really looking good until you start to drill down in them. First thing is the calculation that you will work 45 hours per week...REALLY??? how many of you average 45 hours per week?

Then I took a look at my current PPA amount 32k...OK so what if I retire in one year, what will the amount be? 45.8k yeh right...FedEx is going to put an additional 13.8 thousand into my PPA in a 12 month period? They must have the same engineer doing the math that comes up with the stem times for the RTD's

Even with their inflated numbers the monthly pension amount is between 1/3 to less than half of what my traditional pension plan will pay out and I was only part time for a majority of that plan for the same number of years, and I've been full-time for the entire life of the portable.

Man did we get hosed so hard!!!

 

[Route 66]

What????....Are you insinuating that Fraud Smith has bent us over an' given us a screwin'?

 

[BigTex61]

Surely your not implying that the wonderful Mr.Smith is manipulating these numbers too! You have no faith!

 

[Mr. 7]

PPA= cash it out when you leave and buy a new car and that's it.

 

[Serf]

I just did my PPA calculation. In 2043 assuming I worked here for 30 years my PPA would be worth 76,512 in "future dollars" not current dollars. LOL, That money is going to go pretty far in Estonia!

 

[overflowed]

I just did my PPA calculation. In 2043 assuming I worked here for 30 years my PPA would be worth 76,512 in "future dollars" not current dollars. LOL, That money is going to go pretty far in Estonia!

But just think man, you can buy a really nice car and live in it for your retirement. This is something that they would actually say if you brought that up. If the stuff they always say is any clue. Kinda like "why would you want to top out, nothing to look forward to." Freaks the lot of em.

 

[overflowed]

Actually Migrant worker, I've been curious but no one has asked. What was your turning point to the dark side? I remember you very distinctly when you first started posting.

 

[vantexan]

I just did my PPA calculation. In 2043 assuming I worked here for 30 years my PPA would be worth 76,512 in "future dollars" not current dollars. LOL, That money is going to go pretty far in Estonia!

You bring up a good point, the current system is unfair to employees who start later in life. A 25 yr old qualifies at 50 for the highest percentage, 9%, contribution to the portable pension. A 40 year old would have to work until 58 to qualify. Used to be a 40 year old could get a full traditional pension at 65, and would reach better pay much sooner. Now at 58 he probably wouldn't even be at the midpoint of range. For this plan to amount to anything at all one must start very young and work until full Social Security retirement age, and who knows where SS will be in 40+ years.

 

[fedex_rtd]

There is no future with FedEx! Short term, you will have a job and be able to put food on the table and live a rather basic life, most of the guys at my station are married and their wives make more per hour than they do and half of them are actually on the wife's health care plan.

Long term there is no real future, you will not have a retirement program that you can rely on. The 401k plan was NEVER meant for hourly employees. It was designed for higher wage earning salary employees that did not qualify for a traditional pension plan. Telling lower wage earning hourly employees that this is your retirement plan, requires those hourly workers to put a large percentage of their earnings into the 401k.

How many of you older guys can afford to take $25000 per year out of your take home pay and put it into a savings/investment plan? I would guess the percentage is rather low, but if you do not MAX out your 401k plan every year, then you will NOT have enough to retire on.

If you stay with FedEx I hope you get used to the taste of dog and cat food, because you will not be dining on fine food in your old age.

 

[MrFedEx]

There is no future with FedEx! Short term, you will have a job and be able to put food on the table and live a rather basic life, most of the guys at my station are married and their wives make more per hour than they do and half of them are actually on the wife's health care plan.

Long term there is no real future, you will not have a retirement program that you can rely on. The 401k plan was NEVER meant for hourly employees. It was designed for higher wage earning salary employees that did not qualify for a traditional pension plan. Telling lower wage earning hourly employees that this is your retirement plan, requires those hourly workers to put a large percentage of their earnings into the 401k.

How many of you older guys can afford to take $25000 per year out of your take home pay and put it into a savings/investment plan? I would guess the percentage is rather low, but if you do not MAX out your 401k plan every year, then you will NOT have enough to retire on.

If you stay with FedEx I hope you get used to the taste of dog and cat food, because you will not be dining on fine food in your old age.

Great points, and the biggest is that very few (if any) can afford to make a maximum contribution to the 401k, which is your real retirement plan at FedEx. Senior managers and above, (plus our pilots) routinely max-out their 401ks, and the pilots have a true pension. Please never forget that our upper crust enjoy stock options, and interest-free loans which allow them to buy massive quantities of the stock and then "flip" it when it goes up high enough.

Us? We get the handle of the toilet plunger.

 

[El Morado Diablo]

Great points, and the biggest is that very few (if any) can afford to make a maximum contribution to the 401k, which is your real retirement plan at FedEx. Senior managers and above, (plus our pilots) routinely max-out their 401ks, and the pilots have a true pension.

I've never met a courier who's made anything close to the max contribution to their 401k. I suppose it's possible for a topped out courier in the highest market levels if they can afford to put that much in their 401k. I personally haven't worked with anyone who would admit to making a 10%+ contribution. I can tell you the looks on the faces of my work group is priceless every time our SM talks about making catch-up contributions to his 401k. He is so oblivious to the fact that he can afford to fund his 401k so generously while those who are working for him are lucky if they are putting in 6%. To say he's a little out of touch with his employees financial situation would be an understatement.

 

[overflowed]

I've never met a courier who's made anything close to the max contribution to their 401k. I suppose it's possible for a topped out courier in the highest market levels if they can afford to put that much in their 401k. I personally haven't worked with anyone who would admit to making a 10%+ contribution. I can tell you the looks on the faces of my work group is priceless every time our SM talks about making catch-up contributions to his 401k. He is so oblivious to the fact that he can afford to fund his 401k so generously while those who are working for him are lucky if they are putting in 6%. To say he's a little out of touch with his employees financial situation would be an understatement.

This is it if they want to know why they have to put 15% raises during peak to keep people around. Two words, compensation\ benefits.

 

[overflowed]

Most people I know don't put anything to the 401k because they have other issues to deal with.

 

[Mr. 7]

I just bumped mine from 6 to 8%
Save now, play later. You can do it.

 

[overflowed]

I just bumped mine from 6 to 8%
Save now, play later. You can do it.

Our play is expensive brother.

 

[whenIgetthere]

Most people I know don't put anything to the 401k because they have other issues to deal with.

I put 12% in mine, but it helps that my wife makes a lot more than I do. This still won't mean much when added to the P-ss Poor Pension.

 

[DontThrowPackages]

So I decided to take a look at the FedEx pension site tonight retirement.fedex.com

What I noticed is that the "estimates" are really looking good until you start to drill down in them. First thing is the calculation that you will work 45 hours per week...REALLY??? how many of you average 45 hours per week?

Then I took a look at my current PPA amount 32k...OK so what if I retire in one year, what will the amount be? 45.8k yeh right...FedEx is going to put an additional 13.8 thousand into my PPA in a 12 month period? They must have the same engineer doing the math that comes up with the stem times for the RTD's

Even with their inflated numbers the monthly pension amount is between 1/3 to less than half of what my traditional pension plan will pay out and I was only part time for a majority of that plan for the same number of years, and I've been full-time for the entire life of the portable.

Man did we get hosed so hard!!!

PPA is a glorified savings account.

 

[DontThrowPackages]

But just think man, you can buy a really nice car and live in it for your retirement. This is something that they would actually say if you brought that up. If the stuff they always say is any clue. Kinda like "why would you want to top out, nothing to look forward to." Freaks the lot of em.

Or a used RV and live in it.

 

[Nolimitz]

I put 12% in mine, but it helps that my wife makes a lot more than I do. This still won't mean much when added to the P-ss Poor Pension.

I'm at 15% and getting "catch up" contributions due to my age. Pay your self first. Ya my wife is the bread winner in this house too.

 

[vantexan]

Found some cities in northern Nicaragua where you can get by on $500 a month, live very well on a $1000. Bring a generator, be sure to stock up on water when it's on, but they're safe and the climate is decent. Modern communications means American TV and Internet. The PPA to me means cash out and escape, but then I'm one of the lucky ones who got a traditional pension too, albeit not all I should've gotten. Know a lady there who rents a 3 bedroom, 2 bath house for $200, a black American guy who rents a 5 bedroom for $250. You can struggle here, or go find options.