It applies to the 401k. Is the portable pension similar to a 401k ? Or is it an annuity that pays out a certain amount over your lifetime?
RTD Guy's let's hear how life is
- Thread starter Csdsm18
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It's a cash balance plan the company replaced our traditional pension with. All company contributions. They pay 4% annually, or to be exact 1% each quarter on current balance. The company contributes a percentage of your pay annually that goes up over time to finally 8% of your gross when you've been with them long enough. Then the 4% interest on top of that. It amounts to something after about 60 years.
But do you have the option to move the money when you retire?It's a cash balance plan the company replaced our traditional pension with. All company contributions. They pay 4% annually, or to be exact 1% each quarter on current balance. The company contributes a percentage of your pay annually that goes up over time to finally 8% of your gross when you've been with them long enough. Then the 4% interest on top of that. It amounts to something after about 60 years.
You are smarter than me. I should've quit FedEx long ago and gone into trucking. Are you taking SS at 62?
When I left got a lump sum, which is an option. I suppose you can roll it over into an IRA but don't know. I paid off bills.
You used it all at one time?
I didn't have that much in there. Paid off some credit card debt.
Sorry you had to do that. I hope things are working out for you now.
Thanks amigo. I spent a month in a tent in Kyrgyzstan, what more could I ask for!
Better then being in the back of a FedEx van.Thanks amigo. I spent a month in a tent in Kyrgyzstan, what more could I ask for!
Oldfart
Well-Known Member
I have no problem paying taxes. It's a part of life. I take advantage of every tax break and am curious what the new tax laws are gonna do to my obligation next year. The way I look at it, the more taxes I pay, the more money I must have made in order to owe those taxes.
Oldfart
Well-Known Member
Been doing the math. Looked into waiting until 66 for SS and taking more from my 401 to make up the difference and when 66 happens, drop my 401k withdrawals down. Kind of like the SS leveling option the pension offers. My 5th grade math showed me I will benefit from taking SS early and keeping a slow steady 401k withdrawal plan. Also depends on if I retire in November or work shorts hrs. I believe 16k in income will result in a SS penalty.
Oldfart
Well-Known Member
You can go on the Retirement.Fedex.com website and they have a calculator you can use to figure what your Portable will be based on age, salary and % the company puts in. The calculator is very difficult to find since they changed the site up. You have to really look for it or call retirement to get instructions.
Time for the green flag in Pocono
Route 66
Slapped Upside-da-Head Member
Fred's Myth
Nonhyphenated American
The Portable will only pay for a weekly trip to Starbucks if you don't have 20 continuous years of service.
Oldfart
Well-Known Member
I only have about 14 years in it and it will buy about 16,000 trips to Starbucks. I am not a Starbucks fan though.
Fred's Myth
Nonhyphenated American
As usual, you can't grasp what I posted. The company contributions don't increase as your age+years of service increase unless you have 20 continuous years of service with FedEx. That means if you retire with "only" 19 years of service, your Portable will essentially only buy you a cup of Starbucks per week in retirement.
In other words, be aware, be prepared, your retirement is entirely dependent on what you put aside. The company match on the 401k is essentially all they are contributing.
I'm not getting what you're saying. Are you saying you don't get the portable unless you have 20 years in?
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