BootsOnTarmac
Well-Known Member
How many years have you been employed at FedEx?
Tradtional vs Portable
- Thread starter Oldfart
- Start date
How many years have you been employed at FedEx?
BootsOnTarmac
Well-Known Member
Lighten up Francis. Everybody's reality is different.
BootsOnTarmac
Well-Known Member
My "probably" comes from a 10 year coworker who started as a handler and is now a courier, 12K in the PPA is the "reality". Use the FedEx retirement tool for the PPA and you will see how bad the PPA is based upon the FedEx prediction at retirement. At least you can take it with you when you quit.
McFeely
Huge Member
Hired in 2013.
Oldfart
Well-Known Member
You have 2 other people with less years and more in their PPA. Your coworker was either a handler for a bunch of those 10 years, is PT as a courier, or he simply isn't giving you an accurate number.
BootsOnTarmac
Well-Known Member
In my opinion, not considering those with years vested in the Traditional Plan (Myself), I expect the PPA to only pay for my meds upon retirement.
Currently the best option is to max (what you can afford) your 401k with the contributions and company match being pre-tax. You have a choice of investments (limited) for your 401k. Dollar cost averaging into your 401k is key to these type of retirement investments. Too bad Vanguard closed the option to buy Fedex stock. I considered selling a portion due to the current stock price, but decided not due to the income tax hit.
Currently the best option is to max (what you can afford) your 401k with the contributions and company match being pre-tax. You have a choice of investments (limited) for your 401k. Dollar cost averaging into your 401k is key to these type of retirement investments. Too bad Vanguard closed the option to buy Fedex stock. I considered selling a portion due to the current stock price, but decided not due to the income tax hit.
Oldfart
Well-Known Member
Yep Figures on the Aon Hewitt website is reality. A person who is just crying about something that happened years ago and making up inaccurate figures is where the PROBABLY comes in.
Just like George said on Seinfeld. If YOU believe it, it's not a lie. Either your coworker isn't telling you everything or McFeely and Nolimitz are not telling the truth. Their figures contradicted your figures
Oldfart
Well-Known Member
If your stock is in your 401k and the proceeds stay there, where is the tax hit coming from?
Having a 6 figure PPA is easy with enough years working. How many meds do you plan on taking? I don't think they have invented a pill that treats bitterness, so they can't help you with that.
BootsOnTarmac
Well-Known Member
You are correct. She was a PT handler, PT courier and now FT courier for 3 years. She expected to have more in her PPA and showed me the numbers on her: retirement.fedex.com screen.
So, do you have anything to add here or are you just baiting for an argument?
You started this thread, what do you want to come of it?
BootsOnTarmac
Well-Known Member
My mother often said: "you can't win an argument with an idiot".
I'm just trying to help the masses with information that many have agreed is useful.
Carry on oldfart.
I have no interest in this thread anymore, based upon my mother's advice.
I'm just trying to help the masses with information that many have agreed is useful.
Carry on oldfart.
I have no interest in this thread anymore, based upon my mother's advice.
Oldfart
Well-Known Member
You just got your explanation. Your ORIGINAL complaint was that a TEN YEAR employee only had 10k in their PPA and used that as an argument as to why the PPA sucks. You failed to mention that for 7 of those 10 years, she was PT , first as a handler and then as a courier. She most likely never made more than 10 to 12k as a handler and less than 20 as a PT courier. Now she is making some decent money and you WHINE that she only has 10k in the PPA and because of that, the program sucks. At many companies, PT employees don't even qualify for a pension yet this lady got a head start and you still whine and don't state all the facts.
The reason for this thread was to show that if a person spent a good many of their years with the company enrolled in the PPA, their balance most likely would be several hundred thousand $. Not a bad amount of money to help with retirement.
Oldfart
Well-Known Member
YOUR information was NOT helpful. You failed to mention why the lady only had 10k. State the REAL reason. It wasn't because the plan sucks, it was because she wasn't making any money for 7 of her 10 years.
Taking into account inflation how much is that $150k going to be worth in 35 years? The 4% keeps you out a little in front of inflation as long as inflation remains low. So really at the end of a long career you're basically getting the company's contributions plus a little interest. It's definitely something to supplement your Social Security(if still there) and your 401k. It's on the employee to make as much as possible for bigger amounts in all three plans, and to contribute as much as possible to the 401k.
With topping out faster it might be $300k or more. But won't be worth what that is now. At least can put much larger contributions in 401k and historically stock market has performed at more than double 4% annually. Just got to watch for those crashes.
Oldfart
Well-Known Member
My thread was wondering what a person would have if he put his entire 25 to 35 year career into the PPA. I would imagine if I had my entire 40 plus in the PPA, I would be in the 300k or more range. If I have 100k in 11, what would 35 or 40 years get me. I know pay and % is lower for younger people but it might not be as bad as people think.
Oldfart
Well-Known Member
The thing about the Traditional, there has been 0 increases for inflation and will not be. My 2k was established 11 years ago and will be 2k next year and will be 2k in 15 years.
True, but if person works to 60, or chooses to work longer, and his last five years are his best especially, then he goes into retirement with half of his highest pay, plus his 401k, plus SS.
What Nolimitz posted before is the predicament many full-time couriers faced. I know you don't want to hear it, but when you start out on low pay, raises are minimal, or not at all, and your percentage contribution is the lowest percentage given, you can find yourself with 10 years and very little contributed into what is supposed to be your pension. Great that young people are up to speed with better pay much sooner, but what do you say to 10 year employee who not only has only $20k-$25k in his PPA, but is looking at another 8 years to top out? He'll have spent more than half of his "career" with if he's lucky $60k in his account. That's the complaint, that pay policies not only made it difficult for those who hung in there to get by, but negatively impacted their future. You got a full traditional pension and are getting a significant amount into your PPA. But that 10 yr employee only has the PPA and their low pay makes it difficult to fund their 401k too. I stand by my post that under the new pay plan a new hire can have a decent retirement. But will you acknowledge that for a large group of couriers they had to settle for a lot less?
rural route
Member
What if I took personal account and put it in with vanguard, or would they even allow that? Or is that a bad idea? What you say vantexan or old fart.
I believe you can open a personal account with Vanguard outside of FedEx. They are a mutual fund company. But you should do the 401k first. Automatic tax free pay contributions(pay taxes down the road), and you get the employer match. You can outside of FedEx do a Roth IRA that allows taxable contributions but all earnings are tax free as long as you hold it a certain amount of time.
