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FedEx Freight | Pension for Fed Ex Frt.

FedEx's pension or whatever they call it is anything but that. A pension is a salary you recieve off of years of service and age. I worker for the cdcr for 20 years and took my early retirement. Now i just drive because its alot less stress. My pension was calculated at 3%. This meant 3%x20 yrs 60% of my last years earning (82k) so im collecting about 4600 a month for the rest of my life. im 43 now. I could have worked another 10 yrs and got 90% retirement but I was sick of Prison work lol
 
Another thing is that a 401k is NOT A PENSION. It was designed to SUPPLEMENT a pension. Companies dont match their employees 401's out of the goodness of the hearts. They do it because its the law. You will only be able to retire off of your 401k if you religously sock away at least 15% a year for 25 years or more. Then you might have a million in there. But how much will a million be worth in that time in todays dollars. a million for retirement will give you less than 50k a year if your in retirement for 25 years.
 
All I know is the new pension plan is a way to keep money in FedEx's pockets, and out of ours. I've been earning 10-15% annually on the 2.5% company contribution to my 401K, but now I'm going to earn a maximum 4% annually on a 3% contribution. Compound that for 25 yrs and I'm out an a$$load.

Meanwhile, FedEx gets to invest my money and earn 2-3 times the interest on it that they pay me. This "pension" should include a reach-around with the anal ******.
 
Well on a lighter note welcome '' mac4020''.
Please tell the other drivers in your barn about us.
 
Half Crazy said:
I wish they would just increase the 401K match and the discresonary. This would benifit me more at my age (almost an old fart) than the pension plan will when the time comes that I can tell them where and how they can park that truck. I didn't understand why we needed a pension plan anyway. I think they should have asked us which way we would like to participate, increase the 401K or go pension.
This leads me to an important question I would like to ask. Exactly at what age do you become an old fart?
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Half crazy, I'm still trying to figure out how/why they can change our 401 from Prudential to whatever fly-by-night outfit it's with now. Apparently, they don't have to "ask" anything. They can do what they want with your money.

As for your your last question, according to a fellow that goes by "pipe wrench", it's whenever you become more cranky and irritable than you used to be. I believe he reached "old fart" status a age 22. :maddance3: :ranting2: :mad: :argue:
 
Good point, Magicman. I did not understand that move either. Thou I am still making money on my investments (least before the fall) I was doing really well with Prudential.
As far as our friend Pipewrench, I believe his change of life came before he was 22.
 
Vanguard is a outstanding company.
One of the best in the business , I'm not kidding.
I know this for a fact .
 
I'm doing great with vanguard, just wish I had more to put with them, about 4% would be just about right. Just about what they are putting in my pension plan.:1036316054:
 
Hi everbody, been a long time reader of the forums. Had to register to reply on this topic. I to have done VERY well with my 401k and other investments, but please try not to blurr the lines between these 2 different retirement plans. A pension plan is a reward for X amount of years of faithful service, while 401k is a plan is place to help you SAVE for retirement. All of us are responsible for making sure we have enough to retire on at whatever age we feel is right. While pension is an extra benefit for years of sevice. PLEASE folks don't let the company off the hook for the years of service you have put in (or will put in). If we don't collect this as a pension, be sure we won't collect it at all. With all of the lawyers, and the SMOKE AND MIRRORS the company is able to produce, changes are NOT made for for our benefit. Remember if there is a change it is because the LAW forced it or because it will save the company money. NEVER in todays enviroment will you see a new benefit simply because the company likes you. Its all about bottom line for the stock holders.
 
pension or 401k

At minimum, the pension gives an additional 1% over the profit sharing contribution we got on the 401K. Company could have taken that away anytime it wanted and it didn't. Now we have both and it cost us nothing. If you don't trust one, start a Roth IRA on top of it all. Don't understand the 'either or' question when we have both.
 
gravyboat said:
At minimum, the pension gives an additional 1% over the profit sharing contribution we got on the 401K. Company could have taken that away anytime it wanted and it didn't. Now we have both and it cost us nothing. If you don't trust one, start a Roth IRA on top of it all. Don't understand the 'either or' question when we have both.
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1st as Smoke said, Welcome aboard our boat.

The question was would you rather they start the pension or just put more into the 401k, as you see feelings are split on the subject.

As you say any and all benefits can be taken away by the co any time they want to. The pension is more of a no brainer fixed retirement plan for those that don't want to watch the 401 and make changes when necessary.

FM
 
still a little confused, what happens to the money that you already put into the pension ?

is it added to this new fund or will it be seperate.





tundra2000 said:
Another thing is that a 401k is NOT A PENSION. It was designed to SUPPLEMENT a pension. Companies dont match their employees 401's out of the goodness of the hearts. They do it because its the law. .
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There is no law requiring company matches on 401k's. There are many companies that dont match at all.

It exists for the same reason as your health, life, vacation time etc.... do, to entire you to work for FedEx instead of the competition.
 
Diesel66 said:
still a little confused, what happens to the money that you already put into the pension ?

is it added to this new fund or will it be seperate.
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This is for East as far as I know, we didn't have a pension plan before so nothing paid in already.

If they are changing West to the same plan then what you have already paid in would most likely be frozen after the change. So in effect you would have 2 separate pension plans.

FM
 
Right you are family man 401K is at least out of the company hands. The pension can be changed or pulled from us at any time. Just ask some of the big airlines.
 
From what they are saying this new pension, more of a company paid personal savings plan, can't be taken by the co, you can even take it with you if you quit or get fired.

FM
 
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