59 Dano
I just want to make friends!
You think that something big is coming when Fred S gets buys a can of Pepsi instead of Coke.
No comments about the Pension news today
- Thread starter Oldfart
- Start date
You think that something big is coming when Fred S gets buys a can of Pepsi instead of Coke.
" gets buys" ??
59 Dano
I just want to make friends!
Score one for you.
Youse gets buys anyways youse can.
And you're still wrong. Bummer
Preventable
Well-Known Member
I don't understand what is so complicated about this, and why personal attacks are warranted. Two important things happened with this.
FedEx reduced their overall risk by dumping this off on metlife.
FedEx traditional pensioners are now at the mercy of metlife not going broke instead of FedEx. For the pensioners it will probably never matter unless you live to be like 100 or whatever, then if metlife goes belly up before fedex you get shafted from my cursory understanding of the situation and if the reverse is true then you dodged a bullet?
FedEx reduced their overall risk by dumping this off on metlife.
FedEx traditional pensioners are now at the mercy of metlife not going broke instead of FedEx. For the pensioners it will probably never matter unless you live to be like 100 or whatever, then if metlife goes belly up before fedex you get shafted from my cursory understanding of the situation and if the reverse is true then you dodged a bullet?
Either way we're covered by the PBGC up to their limit. The only ones who'd get hurt are the ones with bigger pensions who'd lose everything above that limit. Last time I looked the Pension Benefit Guaranty Corporation, a Federal agency, covered pensions up to about $47k if I remember right. Companies that offer defined benefit pensions are required to contribute funds to insure pensioners are covered. Which may be another reason FedEx did this, reduces overhead.
The thing to understand about the PBGC is that when it has to take over an insolvent plan you don't just have your monthly benefit end one month and the PBGC sends a check the following month every month afterward. The waiting time for the PBGC to step in can be months so their is a period of time when you receive nothing. In addition there is a formula for determining what your new monthly benefit will be and it most certainly will not be a dollar for dollar match.
When the airlines went belly up a decade ago the pensioners of American Airlines saw their monthly benefit cut by 40% when the PBGC took over and there is growing concern in Washington regarding the PBGC's solvency should it get hit with another avalanche of insolvent pension plans. Therefore one should take no comfort in X's use of the PBGC as assurance that X pensioners will always have a continuous monthly benefit check and in the amounts they were promised. It was designed to make sure that you got something as compared to the nothing you would have otherwise had. Nothing more than that.
Oldfart
Well-Known Member
Yea. But I got all the money and my wife by my side while you live alone and seperated from your wife. Bummer
Sorry, you've got that wrong. Let's say your pension is $75k a year and they cover up to $50k. That's right, you lose $25k but you'll get $50k. Now let's look at a more typical FedEx pension of, say, $22k a year. You get the entire $22k. I know this for a fact, did the research. People used to high pay and a certain lifestyle get bit a bit, but lower pensions remain as before.
Money can't buy class and you're a fine example of that.
The PBGC will never come into to play!! EVER!!
Serf
Well-Known Member
Got it. So MetLife is responsible for Trad Pensions now. Has me wondering (seriously) how they could Doctor up the Portable Plan down the road. Something always seemed unlikely that after x amount of years of service you could file your retirement paperwork & take a lump sum payout. And Fedex would just cut you a big old check that you'd have in a month.
Oldfart
Well-Known Member
You wouldn't know class if it slapped you in the face. All you know is misery and despair. Have you ever had a day of fun and had a happy thought?
Some pensioners getting 100% of their previous benefit while others get 60%? I won't disagree but I think that example might first have to survive a court challenge especially if it's a large insolvency and there are a lot of pensioners involved
Ultimately the distribution will depend on the resources the PBGC has at it's disposal. In fact some published reports project the insolvency of PBGC could come as early as 2023.
Whatever the case X pulling the PBGC into the conversation for no other reason than to allay fears regarding the future solvency of the transfer at least to me would appear to indicate that they harbor some doubt as well. But as long as they can walk away laughing under their breath....that's all that matters to them.
As for Serf's example of taking a lump payment. Unless you meet one of the exceptions you've got 60 days to roll it into another qualified plan or be subject to not only the tax but a penalty of 10%.
Retirement? All you're doing is stopping work at your job so you can spend all day working to steer clear of the many retirement traps that are out there today.
The current state of retirement in this country will soon go from crisis to catastrophe .
Those are the rules. Not sure what the current limit is but it was $47k if I remember right. In other words if your pension was $47k or less you got all of that. Those who were getting more would only get $47k. Of course people who earned enough money to get a $75k pension usually had substantial assets anyways. The rules were primarily designed to protect the lower paid workers who depended heavily on their pension. There's no challenging it in court, that's the way it is. What you saw with American Airlines was well paid employees with serious pensions getting their pension reduced to whatever the limit was at the time. As for insolvency, the fund was threatened by the financial crash. But every company that has or had a traditional pension that it's still paying on is required to contribute annually to the fund to cover a company going under and the government having to cover their pension.
Sure, the day I left FedEx was pure pleasure. I may not know class, but I do know you ain't it.
Let's hope it never comes to that but by far the biggest challenge to the PBGC in the days ahead will be the solvency of multi employer pension plans whereby many of the employers who were contributing to the plan went out of business leaving the few who remain to maintain a fund balance large enough every pensioner regardless of who they worked for.
Remember though X was at one time ranked in the top 10 best companies to work for. Might be true but if you quit, retired or were disposed of that's where you see the true measure of that company.
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