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<blockquote data-quote="quadro" data-source="post: 803860" data-attributes="member: 12850"><p>Van, I don't know what else to tell you. The checks that Cigna/Anthem write are coming out of a FedEx bank account. The premiums we pay go to FedEx. The copays etc help put part of the cost of health care on those that use it. Cigna/Anthem is the vendor whom FedEx pays to administer the plan. It's not like when an individual pays State Farm for their car insurance and then State Farm pays the claim out of their account. If you have Metlife through FedEx for your auto or home insurance, look at your paystub and you'll see a separate line item for that as those premiums do go to Metlife.</p><p></p><p></p><p>The cost to sustain the old pension plan, even for existing employees, was simply too great. With the change in the law, companies can no longer average out their investments when predicting future pension payouts. (My terminology might not be correct here but that's the essence of it). They have to fund on a given date each year and if the market isn't doing well, you can no longer say "well historically, the market will pick back up and we'll have what we need as we need it to pay pensions". You now have to take that date each year and essentially say something to the effect of "the market isn't doing well and we don't know if it will recover so we might not have enough money 20 years down the road. We have to put in $1.5billion this year. Under the old rules we only needed to put in $400million." Again, might not be totally on point but that's the gist of it. If you want to read up on it, just look up the ERISA and the Pension Protection Act of 1996.</p></blockquote><p></p>
[QUOTE="quadro, post: 803860, member: 12850"] Van, I don't know what else to tell you. The checks that Cigna/Anthem write are coming out of a FedEx bank account. The premiums we pay go to FedEx. The copays etc help put part of the cost of health care on those that use it. Cigna/Anthem is the vendor whom FedEx pays to administer the plan. It's not like when an individual pays State Farm for their car insurance and then State Farm pays the claim out of their account. If you have Metlife through FedEx for your auto or home insurance, look at your paystub and you'll see a separate line item for that as those premiums do go to Metlife. The cost to sustain the old pension plan, even for existing employees, was simply too great. With the change in the law, companies can no longer average out their investments when predicting future pension payouts. (My terminology might not be correct here but that's the essence of it). They have to fund on a given date each year and if the market isn't doing well, you can no longer say "well historically, the market will pick back up and we'll have what we need as we need it to pay pensions". You now have to take that date each year and essentially say something to the effect of "the market isn't doing well and we don't know if it will recover so we might not have enough money 20 years down the road. We have to put in $1.5billion this year. Under the old rules we only needed to put in $400million." Again, might not be totally on point but that's the gist of it. If you want to read up on it, just look up the ERISA and the Pension Protection Act of 1996. [/QUOTE]
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