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FedEx Freight | New 401k Plan

The Point said:
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.
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I worded that poorly.
I ment, a way to chart your expected progress. Estimate what it will be, and so on.
 
Rolling Thunder said:
Please do yourselves a favor by pulling out your check stubs and do the math.
The formula Fedex currently uses regarding company matched contributions made to our 401k upto 6% are as follows:

your contribution————FEDEX match
1%—————————-1%
2%.—————————.25%
3% —————————.25%
4%.—————————.25%
5%.—————————.25%
6%.—————————.25%
———————————————————
=6%—————————2.25%
Should you switch to get this so-called 8%, in reality you are only getting .50% increased company match bringing you to 2.75% TOTAL and not the 8% the company claims.
The company is not displaying all the information needed in order to make a wise decision. It is deceiving.
For every 1% the employee contributes the company matches it with a .25% match after your first percentage contribution.
Ppa on the other hand is guaranteed a full 3.5% of your yearly salary.
Don’t give that 3.5% for the
lousy .50%.
It’s a no brainer. Don’t switch.
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Thanks!
Solid info!
 
Sounds like the old lockbox trickery from years past. All I can say do yourself a favor and contact a investment planer outside the company when we get all the information. The less dependent on Fedex I get the better I sleep.
 
Sorry. I made a mistake.
Noticed company revision on matching formula. Currently is at .50% for every 1% of ours after the first percentage.
I verified my own paystub.
Let’s keep it simple.
Currently If I make $100,000 and I contribute $6,000 or 6%, the company will match 3.5% or $3500 giving me $9,500 for the year, plus however it compounds.
With this new proposal, if I contribute 6% or $6,000 the company will match it with 8% or $8,000 giving me $14,000 for the year, plus however it compounds.
Difference: $4,500.
Is my math right?
There is yet a lot of number crunching to be done beyond this.
I need an investment calculator.
 
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Rolling Thunder said:
Sorry. I made a mistake.
Noticed company revision on matching formula. Currently is at .50% for every 1% of ours after the first percentage.
I verified my own paystub.
Let’s keep it simple.
Currently If I make $100,000 and I contribute $6,000 or 6%, the company will match 3.5% or $3500 giving me $9,500 for the year, plus however it compounds.
With this new proposal, if I contribute 6% or $6,000 the company will match it with 8% or $8,000 giving me $14,000 for the year, plus however it compounds.
Difference: $4,500.
Is my math right?
There is yet a lot of number crunching to be done beyond this.
I need an investment calculator.
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Under the pension plan you would get 3K... What's the catch?
 
Streaker69 said:
Under the pension plan you would get 3K... What's the catch?
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The catch is during later years under the pension plan u would be getting 6%.

For me i am gonna switch because it would take decades to get to that 6% under the pension plan.

Let's say for me.
Now 3%
20 years to get to 4%
30 years to get to 5%
40 years to get to 6%.

That means for 30 years i am giving up 1.5% of annual income.

In essence i have to wait 30 years before i can beat the new 4.5 match.

Ymmv depending on age+years of service
 
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Rolling Thunder said:
Sorry. I made a mistake.
Noticed company revision on matching formula. Currently is at .50% for every 1% of ours after the first percentage.
I verified my own paystub.
Let’s keep it simple.
Currently If I make $100,000 and I contribute $6,000 or 6%, the company will match 3.5% or $3500 giving me $9,500 for the year, plus however it compounds.
With this new proposal, if I contribute 6% or $6,000 the company will match it with 8% or $8,000 giving me $14,000 for the year, plus however it compounds.
Difference: $4,500.
Is my math right?
There is yet a lot of number crunching to be done beyond this.
I need an investment calculator.
Click to expand...
That all depends, no??

If u make $100K (for easy math) and you contribute 6% and they match with 3.5%, then your total contribution is $9,500 PLUS say and additional $6K to your pension if you’re at the 6% max for a grand total of $15,500.

With the new 401 plan, at $100K your 6% contribution and their 8% match gives you a total of $14K with zero pension contributions for a grand total of $14K.
 
Redracer3136 said:
That all depends, no??

If u make $100K (for easy math) and you contribute 6% and they match with 3.5%, then your total contribution is $9,500 PLUS say and additional $6K to your pension if you’re at the 6% max for a grand total of $15,500.

With the new 401 plan, at $100K your 6% contribution and their 8% match gives you a total of $14K with zero pension contributions for a grand total of $14K.
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Plus the yearly, I think one percent interest the pension draws. Could be extra 500 on top of the 15500
 
Fedex is going to due what is best financially for fedex. A lot of people here don't contribute anything to their 401k. (I believe that fdx takes out a small percentage automatically). So a bump to 8% match is non starter. With the pension the employee who doesn't save will have some extra cash.

I need more numbers on all of this, I have got 30yrs and I'm 60. As of right now from what I see I will stick with the pension and hope like ssi that there will be money there when I retire.
 
Has anyone actually been told anything about this at the terminal level? Where I'm at we haven't and if you ask they seem lost. Everything I've seen has been outside sources, which is bs.
 
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 is wise! I would NEVER give up a pension. Your pension is guaranteed for life. Plus, as you stated, they can dick with that 401(k) contribution rate any time they wish. I’m a Teamster retiree (25 years), and I’m currently enjoying my pension. My IRA will be there when I’m ready, and...God willing...Social (in)Security. Good luck to you, brother!
 
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