FedEx Pension underfunded by $1.5 Billion (On Topic Please)

[fedex_rtd]

FedEx will need to borrow $1.5 Billion to shore up it's pension program.
FedEx to Borrow $1.5 Billion for Contribution to Pension Plan After Tax Changes

For decades FedEx has claimed that it's pension was fully funded, just like Enron did right up until the government had to step in and guarantee some of those pension payments.

Back in 2008 FedEx froze our traditional pension, but 10 years latter they are having to borrow $1.5 billion in order to shore it up. The real reason that we lost our pension was that in the wake of Enron Congress passed new laws that REQUIRED proper funding of companies pension programs each and every year. FedEx did not want to follow those new regulations and decided to get rid of the traditional pension and go with a much, much worse for the employees plan called the portable pension program...that is anything but "portable" or a "pension"

 

[Operational needs]

Hmm. 88% funded.

 

[bacha29]

FedEx will need to borrow $1.5 Billion to shore up it's pension program.
FedEx to Borrow $1.5 Billion for Contribution to Pension Plan After Tax Changes

For decades FedEx has claimed that it's pension was fully funded, just like Enron did right up until the government had to step in and guarantee some of those pension payments.

Back in 2008 FedEx froze our traditional pension, but 10 years latter they are having to borrow $1.5 billion in order to shore it up. The real reason that we lost our pension was that in the wake of Enron Congress passed new laws that REQUIRED proper funding of companies pension programs each and every year. FedEx did not want to follow those new regulations and decided to get rid of the traditional pension and go with a much, much worse for the employees plan called the portable pension program...that is anything but "portable" or a "pension"

Brings last weeks announcement into a much clearer perspective. Borrow at the lowest rates that will be seen for quite awhile if ever to fulfill pension funding requirements then use tax savings as they accumulate to service the debt. Use other savings to expand and modernize air facilities minimizing future manpower requirements thereby keeping future legacy employee pension obligations as low as possible while at the same time doing nothing to ignite increased wage demands on the part of contractor drive employees. Any hope for a meaningful increase in terms of spendable pay making it into the hands of the ordinary x employee appear dashed.

 

[Catatonic]

MODERATION NOTICE
Per thread starter:
Changed title to be (On Topic)
Deleted 3 off topic posts.

 

[floridays]

I guess we know where some of the 1.5 billion savings they touted a few years ago to wall street and investors came from. Who cares though we got TNT.