Is The PPP Going Away?

[MrFedEx]

Rumor has it that our so-called "pension" may be on the line, or subject to modification (read cut or eliminate). This would be truly wonderful, because anyone with an IQ of at least 50 knows that the PPP is a crappy annuity that isn't a pension at all. If Fred is able to eliminate the PPP, he will have truly outdone himself in terms of his ability to screw us over and add to the pile of takeaways he already has.

Please note that this is something from the grapevine, and is NOT confirmed. It's also possible that they might be modifying the PPP in order to usher more senior employees out the door, which wouldn't be all bad if it works for you.

Just letting you know what I've been hearing.

 

[vantexan]

Rumor has it that our so-called "pension" may be on the line, or subject to modification (read cut or eliminate). This would be truly wonderful, because anyone with an IQ of at least 50 knows that the PPP is a crappy annuity that isn't a pension at all. If Fred is able to eliminate the PPP, he will have truly outdone himself in terms of his ability to screw us over and add to the pile of takeaways he already has.

Please note that this is something from the grapevine, and is NOT confirmed. It's also possible that they might be modifying the PPP in order to usher more senior employees out the door, which wouldn't be all bad if it works for you.

Just letting you know what I've been hearing.

As you know there was a 5 year period where those over 40 were given an extra 4% a year on their PPP payout. The last payment will come this year after May 31st. I've often wondered if there was a specific reason for 5 years and if things will change once that ended. If the PPP were ended, say in favor of just a 401k with a little better match, it most likely would have to come after the end of the fiscal year. It would definitely be a motivation to leave, because between the slow pay progression, the return of the payroll tax to 6.2%, the elimination of OT, and annual medical increases it would be very difficult to fund the 401k.

 

[Cactus]

If Fred is able to eliminate the PPP, he will have truly outdone himself in terms of his ability to screw us over and add to the pile of takeaways he already has.

Fred being the major weasel that he is, I'm sure has at least kicked around the idea. He wants us to have next to nothing so this wouldn't surprise me any. Turnover would then kick into high gear and would cost the company dearly in recruiting and training expenses. To a lot of the younger applicants, a position as senior burger flipper at McDonald's would be more appealing.

 

[Mr. 7]

Just letting you know what I've been hearing.

I'll stick with my signature for now.

 

[MrFedEx]

As you know there was a 5 year period where those over 40 were given an extra 4% a year on their PPP payout. The last payment will come this year after May 31st. I've often wondered if there was a specific reason for 5 years and if things will change once that ended. If the PPP were ended, say in favor of just a 401k with a little better match, it most likely would have to come after the end of the fiscal year. It would definitely be a motivation to leave, because between the slow pay progression, the return of the payroll tax to 6.2%, the elimination of OT, and annual medical increases it would be very difficult to fund the 401k.

It might just be that last ounce of incentive to convince people that they have no future at FedEx, and that they need to move along so Fred can replace them for someone who will work for $14 per hour. If they do kill it, most employees would have a hard time making contributions, as you have pointed-out.

Like the Honey Badger, "Fred Don't Care".

 

[MrFedEx]

I'll stick with my signature for now.

Upper management is starting to push employees to participate more fully in the 401k, which leads me to believe that they are looking to phase-out the PPP and make the 401k our "retirement plan". I would anticipate an increase in the company contribution percentage, which they would sell hard as a viable means of saving for your Golden Years. As vantexan pointed-out, it's very difficult to maximize one's 401k given the low wages, hours cutbacks, and long topout times. In the meantime, they save even more by killing the PPP annuity. A win-win for Fred and another lose-lose for all of us.

Sounds about right. Let's watch and see what happens.

 

[XFILED]

Upper management is starting to push employees to participate more fully in the 401k, which leads me to believe that they are looking to phase-out the PPP and make the 401k our "retirement plan". I would anticipate an increase in the company contribution percentage, which they would sell hard as a viable means of saving for your Golden Years. As vantexan pointed-out, it's very difficult to maximize one's 401k given the low wages, hours cutbacks, and long topout times. In the meantime, they save even more by killing the PPP annuity. A win-win for Fred and another lose-lose for all of us.

Sounds about right. Let's watch and see what happens.

I'm starting to think this is a strong possibility as well...They just had a paid meeting regarding our retirement/pension then had another paid meeting regarding our 401k...FedEx paying you to attend these kind of meetings makes me believe that their up to something...

 

[vantexan]

I'm starting to think this is a strong possibility as well...They just had a paid meeting regarding our retirement/pension then had another paid meeting regarding our 401k...FedEx paying you to attend these kind of meetings makes me believe that their up to something...

What was discussed at these meetings?

 

[XFILED]

What was discussed at these meetings?

I didn't attend them but ill look into it and see what was said..

 

[vantexan]

I didn't attend them but ill look into it and see what was said..

Thanks, on vacation.

 

[MrFedEx]

Thanks, on vacation.

Are you out doorbelling for sales leads?

 

[vantexan]

Are you out doorbelling for sales leads?

LOL, just thankful didn't work in this week's weather.

 

[whenIgetthere]

Thanks, on vacation.

Hope you had some job interviews set up for your vacation week!

 

[vantexan]

Hope you had some job interviews set up for your vacation week!

Nah, just hanging on for retirement.

 

[Goldilocks]

Nah, just hanging on for retirement.

Have a nice vacation and time off Van.....

 

[vantexan]

Have a nice vacation and time off Van.....

I've been sleeping half the day and staying up until 3:30-4:00 a.m.. Going to be tough getting back on a schedule.

 

[XFILED]

Thanks, on vacation.

Im gonna have to ask someone else cause the person I asked could barely remember anything other then they told them about a 15 month accelerated 401k before retirement...

 

[vantexan]

Pure speculation, but if the PPP goes away I've got a guess why. When FedEx started it in mid-2008 you could get 7.5%+ interest on a 5 year CD. They probably felt that the 1% quarterly interest they would pay on PPP accounts would easily be met by the interest on the money they set aside for future PPP payouts(and they'd make a little extra on the side too). It's very difficult to make 4% on any income generating investments today except for riskier junk bonds. In spite of the fact they are saving serious money with the PPP over the traditional pension they probably aren't thrilled that they have to take away from profits to pay some, if not most, of the interest. And as the PPP accounts grow so does the interest paid. If we go to strictly 401k's not only will their match be less than the PPP annual payment, but any growth in the account will depend on market performance, not FedEx paying interest. Pure speculation, but if the PPP ends I suspect this is a major reason why. And in today's economy they can just tell us with a smile we can take it or leave it.

 

[vantexan]

Im gonna have to ask someone else cause the person I asked could barely remember anything other then they told them about a 15 month accelerated 401k before retirement...

The devil is in the details...

 

[MrFedEx]

Pure speculation, but if the PPP goes away I've got a guess why. When FedEx started it in mid-2008 you could get 7.5%+ interest on a 5 year CD. They probably felt that the 1% quarterly interest they would pay on PPP accounts would easily be met by the interest on the money they set aside for future PPP payouts(and they'd make a little extra on the side too). It's very difficult to make 4% on any income generating investments today except for riskier junk bonds. In spite of the fact they are saving serious money with the PPP over the traditional pension they probably aren't thrilled that they have to take away from profits to pay some, if not most, of the interest. And as the PPP accounts grow so does the interest paid. If we go to strictly 401k's not only will their match be less than the PPP annual payment, but any growth in the account will depend on market performance, not FedEx paying interest. Pure speculation, but if the PPP ends I suspect this is a major reason why. And in today's economy they can just tell us with a smile we can take it or leave it.

This sounds totally plausible. Why would the company that cares so much take the time to "remind" us about the importance of our 401k's if they weren't up to something? I fully expect the PPP to disappear, but right now that's just speculation. Again, whenever they are planning a takeaway, it is usually set-up and presented as a "benefit". I would expect the FedEx 401k contrbution to rise, but just enough to convince the Purple People that they are being given another gift from Fred.

In other words, get ready to add another takeaway to the stack.