Plan Today/Play Tomorrow Mailing

[MrFedEx]

Wow, isn't FedEx a great company? They take all that trouble to send out a wonderful "retirement" planning guide so you can "plan today" and "play tomorrow" (in retirement). As usual, the reality is a lot different than the hype. First, take a look at the pie chart on page 5, which includes FedEx as one of the companies that has preserved it's pension plan. Really? It's very self-serving of FedEx to call the PPA a "pension plan" but they give themselves credit for it anyway. Maybe they should have modified the pie chart to show the percentages of companies that substituted a crap pretend pension in place of a real one. Second, based on our wages, how are you going to get anywhere close to the figures quoted for funding an adequate retirement? Maybe all of those shiny smiling faces in the pictures wouldn't be so happy if they did the math. Good luck on reaching the goal numbers.

Even the old plan wasn't very generous. For example, a good friend of mine is a FedEx ops manager with 20 years of service, most of those under the old plan. Even though his 5 highest years were all over $100,000, he'll still receive right around $3,000 per month at his normal retirement age. That isn't very good, is it? Under the PPA, he (and the rest of us) will do significantly worse. But none of that seems to be mentioned in our glossy little "planner". Wonder why?

In the event we go union, we shouldn't be content if the company offers to scrap the PPA and bring-back the old plan. Both suck, and we deserve better. Talk to the UPS package car driver on your route and ask him or her what they will be receiving when they hang it up. Chances are, they can also leave sooner based on the 80 and out provision in their Teamster contract. In comparison, we lose all around.

Don't drink the Fool-Aid, even if it comes to you in a form that makes it seem that the company has your best interests at heart, because they don't. They're hoping that mailings like this will fool many employees into thinking that they don't need a union. We do. Keep trying, Fred.

 

[MrFedEx]

Plan Today and Play Tomorrow

This recent mailing was a joke. Why? Take a look at page 5, where FedEx crows how they are one of the few companies that still provide a pension plan. Since when does a pitiful annuity like the PPA qualify as a bona fide pension plan? It doesn't, and FedEx is making false and misleading statements as usual. To call the PPA a "pension" is not just a non-truth, but an insulting slap in the face to all of us.

The traditional plan, which disappeared in 2008, was a true pension plan, although not a very good one. Here's an illustration. I have a friend who is a 20-year employee and has been a manager for about 17 of those years. His "high 5" years are well above $100,000, yet his annual retirement payout will be just a little over $3,000 per month at normal retirement age. Compare this figure to that of a UPS package car driver. The discrepancy is worse if you compare a FedEx courier or RTD to their UPS counterpart.

OK, so even if you call the PPA a "pension", how is anyone going to reach the savings needed to fund an adequate retirement using FedEx's own figures in the mailing? Unless you can save most of every check, you won't even be close thanks to our stagnant low wages. More lies.

Funny how all of this propaganda telling us "how good we've got it" appears just as the RLA controversy is heating-up again. If we do go union, we need something better than either the PPA or the old traditional plan. Both suck. We deserve better.

 

[MrFedEx]

Wow, isn't FedEx a great company? They take all that trouble to send out a wonderful "retirement" planning guide so you can "plan today" and "play tomorrow" (in retirement). As usual, the reality is a lot different than the hype. First, take a look at the pie chart on page 5, which includes FedEx as one of the companies that has preserved it's pension plan. Really? It's very self-serving of FedEx to call the PPA a "pension plan" but they give themselves credit for it anyway. Maybe they should have modified the pie chart to show the percentages of companies that substituted a crap pretend pension in place of a real one. Second, based on our wages, how are you going to get anywhere close to the figures quoted for funding an adequate retirement? Maybe all of those shiny smiling faces in the pictures wouldn't be so happy if they did the math. Good luck on reaching the goal numbers.

Even the old plan wasn't very generous. For example, a good friend of mine is a FedEx ops manager with 20 years of service, most of those under the old plan. Even though his 5 highest years were all over $100,000, he'll still receive right around $3,000 per month at his normal retirement age. That isn't very good, is it? Under the PPA, he (and the rest of us) will do significantly worse. But none of that seems to be mentioned in our glossy little "planner". Wonder why?

In the event we go union, we shouldn't be content if the company offers to scrap the PPA and bring-back the old plan. Both suck, and we deserve better. Talk to the UPS package car driver on your route and ask him or her what they will be receiving when they hang it up. Chances are, they can also leave sooner based on the 80 and out provision in their Teamster contract. In comparison, we lose all around.

Don't drink the Fool-Aid, even if it comes to you in a form that makes it seem that the company has your best interests at heart, because they don't. They're hoping that mailings like this will fool many employees into thinking that they don't need a union. We do. Keep trying, Fred.

For some reason, this came across as an "error" this morning, so I'm surprised that it survived and got posted. I re-posted a very similar comment this afternoon. Sorry for any confusion.

 

[quadro]

Re: Plan Today and Play Tomorrow

The traditional plan, which disappeared in 2008, was a true pension plan, although not a very good one. Here's an illustration. I have a friend who is a 20-year employee and has been a manager for about 17 of those years. His "high 5" years are well above $100,000, yet his annual retirement payout will be just a little over $3,000 per month at normal retirement age.

Just for the fun of it and to go down a road that many here like to take, MrFedEx must be one of Jim's cronies spreading misinformation just to drum up union sympathy.

I'm sure the math error was just an oversight on your part but I couldn't help myself.

 

[vantexan]

Re: Plan Today and Play Tomorrow

This recent mailing was a joke. Why? Take a look at page 5, where FedEx crows how they are one of the few companies that still provide a pension plan. Since when does a pitiful annuity like the PPA qualify as a bona fide pension plan? It doesn't, and FedEx is making false and misleading statements as usual. To call the PPA a "pension" is not just a non-truth, but an insulting slap in the face to all of us.

The traditional plan, which disappeared in 2008, was a true pension plan, although not a very good one. Here's an illustration. I have a friend who is a 20-year employee and has been a manager for about 17 of those years. His "high 5" years are well above $100,000, yet his annual retirement payout will be just a little over $3,000 per month at normal retirement age. Compare this figure to that of a UPS package car driver. The discrepancy is worse if you compare a FedEx courier or RTD to their UPS counterpart.

OK, so even if you call the PPA a "pension", how is anyone going to reach the savings needed to fund an adequate retirement using FedEx's own figures in the mailing? Unless you can save most of every check, you won't even be close thanks to our stagnant low wages. More lies.

Funny how all of this propaganda telling us "how good we've got it" appears just as the RLA controversy is heating-up again. If we do go union, we need something better than either the PPA or the old traditional plan. Both suck. We deserve better.

As far as retirement goes I see I only have 3 options:

Live overseas. And as I'll have only $1100 or so a month at 55 plus some savings that'll narrow my choices as to what I can afford that won't get me killed or catch a serious disease. Seriously, I've researched this for years. There are some nice places out there that are reasonable but as I have no cost of living adjustment built into my pension I may have to keep working to save more to supplement it.

Camp fulltime. Not necessarily RVing but a small camper boondocking on public land. Can supplement my pension by taking on temp jobs like working the sugarbeet harvest in North Dakota. Can pocket a few grand working 4 or 5 weeks there.

Move in with relatives. Both my sister and brother want me too. Both my brother-in-law and sister-in-law don't. 'nuff said.

Just illustrating how limited my choices are for retirement given what the company did to the pension. My only other choice appears to be keep working, probably until I drop. I've known couriers in their late 60's. Not what I want. Looks like I'll head to the Philippines to find a wife, and hope the gov't doesn't ruin Social Security. If that happens we are all screwed. Well, all of us who weren't corporate exec's who raked it in.

 

[bbsam]

NPR had a piece today about defined pensions and their demise over the last several years. According to them, retirement never really was to be paid for from one source. From it's inception Social Security was to account for 1/3, a pension or other employer provided savings vehicle, and personal investment and savings. Maybe it's not that things have changed that much but that we've forgotten the formula. Like we keep beating our heads on the wall insisting that 1+1 has always been 3 but the catastrophic shift in socio-economic policy has somehow warped the relationship.

 

[MrFedEx]

Re: Plan Today and Play Tomorrow

Just for the fun of it and to go down a road that many here like to take, MrFedEx must be one of Jim's cronies spreading misinformation just to drum up union sympathy.

I'm sure the math error was just an oversight on your part but I couldn't help myself.

Yep, I'm a Hoffa plant. I only wish the IBT had that much initiative. No math error...that's what he's going to get, or were you kidding about that too?

 

[vantexan]

NPR had a piece today about defined pensions and their demise over the last several years. According to them, retirement never really was to be paid for from one source. From it's inception Social Security was to account for 1/3, a pension or other employer provided savings vehicle, and personal investment and savings. Maybe it's not that things have changed that much but that we've forgotten the formula. Like we keep beating our heads on the wall insisting that 1+1 has always been 3 but the catastrophic shift in socio-economic policy has somehow warped the relationship.

Let's look at the 3 legs:

1. Our pension has been greatly reduced.

2. Pretty hard to achieve personal savings when pay progression has greatly slowed.

3. Social Security is under attack from all sides. The push is on to eliminate it, primarily because businesses don't want to match our contributions. And now the gov't is spending so much they'll manage to bankrupt us eventually.

We're screwed.

 

[quadro]

Re: Plan Today and Play Tomorrow

Yep, I'm a Hoffa plant. I only wish the IBT had that much initiative. No math error...that's what he's going to get, or were you kidding about that too?

Nope. Not kidding about the math error. From what I've read from your posts, I know you know how to figure out the pension payment. The fact that you don't acknowledge the math error would imply that you are purposely presenting erroneous information. I wonder why you would intentionally mislead and misinform people?

 

[vantexan]

Re: Plan Today and Play Tomorrow

Nope. Not kidding about the math error. From what I've read from your posts, I know you know how to figure out the pension payment. The fact that you don't acknowledge the math error would imply that you are purposely presenting erroneous information. I wonder why you would intentionally mislead and misinform people?

I don't see an error either. He's a 20 year employee so let's say he was an 18 year employee when plan was terminated. Take 2% of his $100,000 5 year average=$2000, multiply by 18=$36,000. Divided by 12 equals $3000 a month at age 60. What error were you referring to? OK, on looking closer I notice he said 5 highest years "well above" $100,000. Would have to know how many years of service he actually had when plan terminated as well as what his actual 5 year average was. My first year with company didn't count towards pension since I didn't work 1000 hrs as a part-timer in Memphis hub. So maybe he only had 16 or 17 years of credited service?

 

[MrFedEx]

Re: Plan Today and Play Tomorrow

Nope. Not kidding about the math error. From what I've read from your posts, I know you know how to figure out the pension payment. The fact that you don't acknowledge the math error would imply that you are purposely presenting erroneous information. I wonder why you would intentionally mislead and misinform people?

No erroneous information here....I'll leave that to you. My manager friend has 17 years in under the old plan and 3 under the new PPA. My figures are "approximate" because they are from him. His claim to be eligible for just over $3,000 per year makes sense, and he has no reason to lie to me. Another manager I know has nearly exactly the same years of service as a manager, and she will receive less than $3,000 per year at normal retirement age because she has worked in a lower-level market. Please prove me, or these individuals wrong. Are you sure Maury isn't pulling your strings?

 

[bbsam]

3000 per month + Social Security + personal retirment savings could be a decent sum.

 

[vantexan]

3000 per month + Social Security + personal retirment savings could be a decent sum.

Yeah, it's a great company for management.

 

[UpstateNYUPSer(Ret)]

bbsam, Mr Fed Ex said $3K/year but I would have to think that is a typo and he meant to say month.

Social Security was never meant to be the sole source of retirement funds. My current plan is to use SS to pay my monthly bills and use the pension ($4K/month) and my 401k to enjoy my retirement.

 

[MrFedEx]

bbsam, Mr Fed Ex said $3K/year but I would have to think that is a typo and he meant to say month.

Social Security was never meant to be the sole source of retirement funds. My current plan is to use SS to pay my monthly bills and use the pension ($4K/month) and my 401k to enjoy my retirement.

Good catch...it was a typo. I did mean to say under $3,000 per month. My point, which was missed as usual by Quadro, was that even well-compensated managers make less in retirement than a UPS package car driver. In other words, our plans suck for both hourlies and lower-level management. I wonder why the upper-level execs don't have the PPA if it's so wonderful. So Quadro, please come back and enlighten us about how good we've got it, OK?

 

[bbsam]

Previous post said per month and I was referring to my reference of a NPR story referring back to the beginning (for the sake of reference) of Social Security.

 

[vantexan]

bbsam, Mr Fed Ex said $3K/year but I would have to think that is a typo and he meant to say month.

Social Security was never meant to be the sole source of retirement funds. My current plan is to use SS to pay my monthly bills and use the pension ($4K/month) and my 401k to enjoy my retirement.

I plan to marry a young Filipina in my late 50's and have a couple of kids. As dependents of a retired father at 62 the kids will each be entitled to a payment equal to 50% of my full Social Security payment(with a limit of 180% of the full retirement amount per family). Of course rules may change before then, or Social Security will be gone, etc, but if luck holds up I'll be able to have a family I can afford someday. Take that FedEx! And hey UpState, I assure you I'll be enjoying my retirement too, LOL!