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FedEx Freight | New 401k Plan

I would say stay with the pension. The match might be screwed with and lowered down the road and I'm sure if they did away with the pension they would let those ppl get the higher match at that point since it wouldnt be a choice if it ever happened. As of now I think the pension is the better choice. I dont have alot of faith in the market. Knew too many close to retirees that lost their ass in 2008. Not worth it to me to shut the door on ppa for 4.5%
 
The reason I feel this change is coming is the majority of the company is nearing retirement within the next 10 years. The pension has problems now with paying its retirement.
They are borrowing money now to fund it
 
Boats n hoes said:
I would say stay with the pension. The match might be screwed with and lowered down the road and I'm sure if they did away with the pension they would let those ppl get the higher match at that point since it wouldnt be a choice if it ever happened. As of now I think the pension is the better choice. I dont have alot of faith in the market. Knew too many close to retirees that lost their ass in 2008. Not worth it to me to shut the door on ppa for 4.5%
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That's my feelings. While the market makes you money OVERALL, it still has swings, and I wouldn't want to gamble on it being up when I retire.
Like I was saying, some here, some there. Inswof EVERYTHING in one basket.
 
truckinbuddy said:
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?
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Uncle Fred is keeping it just like the extra $150 a mo for our insurance. And pay out his Special Bonus Program for himself and that Back Tax he's going to owe from last yr. Bend over driver here it comes again. They didn't even put money in the pension last yr correct?
 
Gator said:
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Has anyone seen this
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Is this saying that if I put in 6%, FedEx will contribute 8%? If I gross 100 dollars and contribute 6 dollars to my 401k, fedex will contribute 8 dollars?
 
Streaker69 said:
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.
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That could go either way. I "think" the wording in the pension states that contributions can be discontinued at any time. We'll double check later.

The 401k can also be altered. As noF said, it'll take some math to decide.
 
screweddaily said:
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.
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Low participation should have ZERO effect on the pension. Unlike other pensions, this one does NOT rely on new recruits to fund those collecting.
 
Hilliard said:
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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."
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If you cash out (as opposed to roll over), those funds will be taxed.
 
purple Haze said:
Uncle Fred is keeping it just like the extra $150 a mo for our insurance. And pay out his Special Bonus Program for himself and that Back Tax he's going to owe from last yr. Bend over driver here it comes again. They didn't even put money in the pension last yr correct?
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They paid into the pension last year.
 
Interesting to me... This seems to be a FedEx directive. NOT just Freight.

Luckily, we have some time to make a decision. Jan 2021 is when the change goes into effect.

Lots to consider. The pension is pretty similar to the safest of the 401k choices, and with a similar low return. So one could duplicate their diversity within the 401k to mirror having the pension.

A LOT will depend on you current age/time with the Company. For reference, here are the numbers associated with the "Freight" pension contributions. (age + time with the Company determines credit)
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No F-bdy Bs said:
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.
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I have 20+ years in and the pension amount is far from stellar. I will drop this PPA in a hot minute. I have been calling for an 8% 401k match for years on this board and finally they have listened. Waiting for over a year to institute it gets a thumbs down as time is money but at least it is coming. I already contribute 10% now. The PPA is at 5% for me now and will top out at the 6% by the time this goes into effect. The math for me is a low return on the PPA contribution versus my return through the 401k.
 
No F-bdy Bs said:
Anyone have a chart showing how much should be in your PP based on years served?
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You really can't chart that. It is based off income plus age and years of service. A young city driver and recently hired older city guy could have different % even if pay was exactly the same as their time goes on.
 
No F-bdy Bs said:
That's my feelings. While the market makes you money OVERALL, it still has swings, and I wouldn't want to gamble on it being up when I retire.
Like I was saying, some here, some there. Inswof EVERYTHING in one basket.
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You of course do know that the pension fund is invested I stocks? Probably a substantial portion of it.
 
SwampRatt said:
That could go either way. I "think" the wording in the pension states that contributions can be discontinued at any time. We'll double check later.

The 401k can also be altered. As noF said, it'll take some math to decide.
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I’ve seen that wording too about the pension plan.
But in my 30 years, the 401k match has never gone down...
 
Not that it has anything to do with FedEx, my 401K contribution was eliminated by the company in 2009 for several years. Bear in mind that it was a YRCW subsidiary and we all know how that was working out. I took the opportunity to contact an financial advisor and started contributing to a Roth IRA for myself and spouse. I also took advantage of him for advice on my 401k as well. It worked out fine in the end for me.
 
The Point said:
I have 20+ years in and the pension amount is far from stellar. I will drop this PPA in a hot minute. I have been calling for an 8% 401k match for years on this board and finally they have listened. Waiting for over a year to institute it gets a thumbs down as time is money but at least it is coming. I already contribute 10% now. The PPA is at 5% for me now and will top out at the 6% by the time this goes into effect. The math for me is a low return on the PPA contribution versus my return through the 401k.
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That's a thought as well.
Iirc, when I left Fx, I had 15yrs in, and my PP was only $16,000 at that time.
 
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