FedEx Express NON-DOT Courier

Oldfart

Well-Known Member
True, but I believe the PPA contribution is 5% under 55 annually and 6% over 55. I could be wrong, unless it changed.
Mine has been 8% for a good while. Was 10% while they did a catch up cycle or something like that. The 4% annual growth is phenomenal in this economy. Wish I could dump more money into whatever it is invested in. 4% guaranteed is a great deal.
 

vantexan

Well-Known Member
True, but I believe the PPA contribution is 5% under 55 annually and 6% over 55. I could be wrong, unless it changed.
Actually the categories are 3, 5, 7, and 9%. Which one you are in is determined by your points, which is a combination of your age plus years of credited service. You need 75 points to get 9% which a 50 year old with 25 years would qualify for.
 

Oldfart

Well-Known Member
Actually the categories are 3, 5, 7, and 9%. Which one you are in is determined by your points, which is a combination of your age plus years of credited service. You need 75 points to get 9% which a 50 year old with 25 years would qualify for.
My statements say 8%. Looks like this no good lousy cheating company owes me 1%
 

Oldfart

Well-Known Member
oldfart, I'm in the same boat as you. For the life of me I can't figure out how they pay out 1% per quarter. However, I won't complain.
Went to see a financial advisor recently and he said we were getting 1% ANNUALLY. Once I showed him my statement, he was convinced and very surprised as well. Of course he wanted to sell me some annuities that were not even paying the 4% we are getting now. I plan on leaving my portable alone when I retire and let it keep drawing 4%. Gonna let that be my last account to pull money from.
 

59 Dano

I just want to make friends!
And if they all ran and jumped into a fire would you also run and jump into a fire? Yep, if you smelled fatter profits.

The options are to keep paying someone until they die or to give them their retirement money as they work. One of them is exponentially more expensive than the other and potentially more dangerous for both the employer and the employee. I like the idea of a defined benefit pension, but my options without it are much better.
 

59 Dano

I just want to make friends!
Millennials prefer the portability of a 401k.

My folks retired with traditional pensions from plans that have been properly managed. My wife's pension fund is ridiculously underfunded with no meaningful relief in sight so she will take the lump sum option upon retirement.
 

vantexan

Well-Known Member
Nobody has addressed the fact that after 25 years, an employee had no growth under the OLD plan. What say you?
Not so. If you worked 30 years before they terminated the plan they took your 5 highest paid years from those 30, averaged them together, took 2% of that average and multiplied it by the number of years you worked up to 25 years. The point being that you could get at age 60 as much as 50% of your highest annual average from all the years you worked including those over 25 years. And your last years worked are often your highest paid years.
 

vantexan

Well-Known Member
The options are to keep paying someone until they die or to give them their retirement money as they work. One of them is exponentially more expensive than the other and potentially more dangerous for both the employer and the employee. I like the idea of a defined benefit pension, but my options without it are much better.
Doesn't change the fact that FedEx lured employees into the new plan so that they wouldn't have to pay them the extra 4% annually for five years they gave those who were forced into the new plan. Doesn't change the fact that FedEx gave us a "choice" to remain in the traditional pension but they had no intention to honor that choice. You can make the argument that over time if FedEx couldn't remain profitable it would be forced to take strong, even drastic measures to stay solvent. But everything they did points to taking advantage of the marketplace climate against defined benefit pensions to boost profits and thus their stock price. How they did it showcases their dishonesty and greed.
 

Oldfart

Well-Known Member
Not so. If you worked 30 years before they terminated the plan they took your 5 highest paid years from those 30, averaged them together, took 2% of that average and multiplied it by the number of years you worked up to 25 years. The point being that you could get at age 60 as much as 50% of your highest annual average from all the years you worked including those over 25 years. And your last years worked are often your highest paid years.
If the ONLY growth you would receive was the increase of your 5 best years, you are still better off with the portable on top of your traditional. If your traditional increased by $250 a month under your example, that is $3000 per year. You live 20 years after retirement, that is 60k more in traditional payments. Are you not gonna have more than 60k in your portable when you retire? Remember that the $250 increase is very generous. I would bet your increase would be more like $150 at most.
 
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Doesn't change the fact that FedEx lured employees into the new plan so that they wouldn't have to pay them the extra 4% annually for five years they gave those who were forced into the new plan. Doesn't change the fact that FedEx gave us a "choice" to remain in the traditional pension but they had no intention to honor that choice. You can make the argument that over time if FedEx couldn't remain profitable it would be forced to take strong, even drastic measures to stay solvent. But everything they did points to taking advantage of the marketplace climate against defined benefit pensions to boost profits and thus their stock price. How they did it showcases their dishonesty and greed.

When are you leaving for Mexico
Again ? Don't forget to take MFE and cactus with you
 

59 Dano

I just want to make friends!
Doesn't change the fact that FedEx lured employees into the new plan so that they wouldn't have to pay them the extra 4% annually for five years they gave those who were forced into the new plan. Doesn't change the fact that FedEx gave us a "choice" to remain in the traditional pension but they had no intention to honor that choice. You can make the argument that over time if FedEx couldn't remain profitable it would be forced to take strong, even drastic measures to stay solvent. But everything they did points to taking advantage of the marketplace climate against defined benefit pensions to boost profits and thus their stock price. How they did it showcases their dishonesty and greed.

I can't help you. Gonna have to get over it. Good luck.
 

vantexan

Well-Known Member
If the ONLY growth you would receive was the increase of your 5 best years, you are still better off with the portable on top of your traditional. If your traditional increased by $250 a month under your example, that is $3000 per year. You live 20 years after retirement, that is 60k more in traditional payments. Are you not gonna have more than 60k in your portable when you retire? Remember that the $250 increase is very generous. I would bet your increase would be more like $150 at most.
Two things: you said there was no growth after 25 years, not so. You are right that for you it works out better, but for everyone that only have the portable pension, the traditional pension would've been a much better option for them.
 

Serf

Well-Known Member
Actually the categories are 3, 5, 7, and 9%. Which one you are in is determined by your points, which is a combination of your age plus years of credited service. You need 75 points to get 9% which a 50 year old with 25 years would qualify for.
Ah, ok. Yes. That would explain why I am at 5%.
 
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