FedEx Freight | New 401k Plan
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truckinbuddy
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Thats something out of left field I didn't expect that. What happens to our pension money if we elect to go into the higher 401 match?
Streaker69
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This is a tough one. Nothing comes out of my check for the pension and I can't afford anymore deductions.
I can roll a 401k if I leave FedEx, pension is cash out. Cash out does sound appealing, but I like planning for the future. I'm about 30-40 years away from retirement so rolling an 8% match would be ideal. And in that timeframe, history suggests, the market will be much higher. This is a tough one.
I can roll a 401k if I leave FedEx, pension is cash out. Cash out does sound appealing, but I like planning for the future. I'm about 30-40 years away from retirement so rolling an 8% match would be ideal. And in that timeframe, history suggests, the market will be much higher. This is a tough one.
No F-bdy Bs
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Edit:
Wait, to be eligible for the new 401k match, you have to forgo any further advancement to the seperate Portable Pension plan?
That's going to take some math, and figuring to see which would benefit you the most.
My kneejerk says the extra 2% isn't worth forgoing the PP, especially if you have 15+yrs with the company.
Wait, to be eligible for the new 401k match, you have to forgo any further advancement to the seperate Portable Pension plan?
That's going to take some math, and figuring to see which would benefit you the most.
My kneejerk says the extra 2% isn't worth forgoing the PP, especially if you have 15+yrs with the company.
Streaker69
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Yes, you have to give up further contributions to the PP to be eligible for the 8% match. I want to know if they're going to make changes to the PP contribution later down the line.
Its actually an extra 4.5% match my question is what happens to the pension money already invested? If we can roll it into a ira or continue growth it's a no brainer take the match I would think
You can roll over the fedex pension plan.
"No minimum age to receive benefits. Your vested PPA benefit can be paid to you or rolled over to an IRA or another eligible plan when you leave employment with all FedEx companies."
Redracer3136
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It my understanding that they’re doing away with the PPA and all new hires will only have the higher contributed 401K option while the rest of us will have a decision to make...
Redracer3136
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If you choose to go into the higher matched 401, the money that is currently in your PPA will just stay there and continue to draw interest but no more money will be contributed....make sense??
going coastal
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With a company the size of ours. Lawyers needed time to underwrite policies such as the new 401k plan if true and spousal fines. My concern would be what are they planning beyond 2021 could Fedex decide to lower or suspend the match on our 401k as they did in the past. Regardless of opinions on why major changes to our total benefits package is taking place I can’t remember the last time Fedex announced exciting compensation news for us.
1.5% probably isnt worth changing.
Redracer3136
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From what I’m hearing, no. The money in your PPA will just stay there drawing interest if you choose to to participate in the higher 401.
No F-bdy Bs
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I don't know,,,
That's putting all your eggs into betting on the stock market doing good, which it always does, over time. Still, I'd rather have a lump in the PP, along with the 401,and Social Security, assuming that's still around when we retire. Have things spread around a bit.
No F-bdy Bs
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Nevermind, I was thinking of something else.
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No F-bdy Bs
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Think I'd rather keep things like they are, and let Fx contine to contribute to my PP AND continue to match the old 401k max.
You can always contribute more yourself to the 401k.
Unless you have 20+yrs with the company, your PP won't amount to much. Halting Fx contributing to it, and just letting it gain interest won't equal a hell of a lot.
You can always contribute more yourself to the 401k.
Unless you have 20+yrs with the company, your PP won't amount to much. Halting Fx contributing to it, and just letting it gain interest won't equal a hell of a lot.
Redracer3136
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No but the 8% match on 6% contribution could be substantial depending on your investment strategies.
Yeah, I’d like to roll it over and earn more interest on it too.
But to use it personally right now, it would be taxed and most likely an earlier than 59 1/2 penalty applied....
This is what worries me on a few fronts, you stay in the pension and down the road they say we dont have enough participants so we are doing away with it.
You switch to the 401k and down the road they lower the contributions again as they have done before.
There is to many changes coming quickly trying to save there butt from bad investments on there part. Quit buying companies and focus back on what you do best
You switch to the 401k and down the road they lower the contributions again as they have done before.
There is to many changes coming quickly trying to save there butt from bad investments on there part. Quit buying companies and focus back on what you do best
screweddaily
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This sounds good now, but what happens a few years down the road when they lower the match and we have given up our pension or claim there's to few participantsin the pension to continue offeringit.... This is going to be a tough decision and the way things are going at fedex right now I dont have much faith in the company.