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FedEx Freight | New 401k Plan

Trucker 206 said:
I suppose a complete economic apocalypse that wipes out every persons worth down to zero is a possibility, but I’ll hedge my bets. I have some close friends whose 401k’s got KILLED during the 2008-09 ‘Depression’ and only in the last few years have returned to where they were 10 years ago. All that did for them was put off their retirement 10+ more years.
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Trucker 206 said:
I suppose a complete economic apocalypse that wipes out every persons worth down to zero is a possibility, but I’ll hedge my bets. I have some close friends whose 401k’s got KILLED during the 2008-09 ‘Depression’ and only in the last few years have returned to where they were 10 years ago. All that did for them was put off their retirement 10+ more years.
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The DOW has more than tripled in that time. They recovered a long time ago if they left there money in.
 
duff said:
Thats ridiculous if they left it alone it's more than doubled in that time frame the only people who lost money are the ones who panicked and moved funds its basic math. I hear this nonsense all the time I'm going to guess you dont invest it doesn't work that way
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On the contrary. I invested quite well and wisely. Which is why I’m 59 and have been retired for 18 months now. Haven’t even begun to draw in my IRA yet (eligible to do so next month). I remember in early 2001, during a decertification campaign at where I was working at the time, the management brought in a couple of ‘investment guru’s’ to give us the schpeel on how much better 401k’s were compared to pension plans. We all know what happened to the market after 9/11.

Retirement plans (pensions AND 401k’s), when managed properly, can work wonders. Providing the financial managers of those plans have the best interests of the participants at top priority.
 
Redracer3136 said:
Guess that all depends on one’s investment strategies...I got my ass handed to me in 08-09 but I’ve made that money back tenfold since then.
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These were younger fellows...not too investment savvy at the time. Bought in on the company’s ‘we can do better than the Teamsters Pension Plan for you’ nonsense. Not long after that...boom. They’re lucky, in the sense that most of them had a lot more time in the workforce to recover, but some of those guys had their hearts set on making a quick buck and getting to retire early.
 
screweddaily said:
How many drivers regularly use the intranet? This is something that should have been addressed to us in some kind of meeting or something posted in dispatch or somewhere people regularly look. There has been nothing said directly to the people that work at my terminal.
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Dang S-Daily. Every Driver/employee HAS access, if the want it. Obviously "some" pay attention, AND share on here for the benefit of the rest of the class.

Current employees wont be effected OR have to make a decision for a FREAKING YEAR. Nothing pressing. But we get a heads up here on truckingboards, typically as soon as news breaks. I complain as much as anyone about lack of communication, but this info was made available to all, on the internal intranet. No directive yet for a preshift, but there is a lot of time before ANY change.
 
Gator said:
My fear is Fedex doesn’t want to pay much of any retirement, 401 or pension. Thats why it took so long to get fully funded. Ive been here 26 years and only been fully funded 3 years because of my age. If I retired today I get a few hundred dollars. They see a mass retirement of workers in the next ten years so lets bail for the next shell game.
They know younger workers don’t participate in the 401 or if they do its very low deductions till they start making real money. By then Fedex will scheme another better plan knowing it takes forever to max it out
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And, after closer examination, the Company contribution is actually going to be higher, as a percentage, for those contributing less. 200% match.
 
almost13ranch said:
All freight companies move other people’s boxes to make money. All publicly traded companies have a fiduciary responsibility to protect and benefit shareholders.
That doesn’t mean they shouldn’t take care of their workers, it does mean that it’s not the first priority.
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True That. But there IS a line somewhere in terms of balance. Companies (actually their executives) can go too far, at the employee's expense. Not saying they have crossed that line today, but I think they did in the past, with expected results (costs).
 
So why are we eliminating such a great benefit at no cost to the employee that the company has bragged about? Cost savings is why I think this came about. They are rolling the dice on this program because company annalists or some other position thinks this will work to reduce company debit. They know that a certain percentage don't participate or contribute a small percentage to the 401k. FedEx has to keep funding this PPA above a certain level and that drains on profits into infinity. FedEx sold over $3 Billion debt/bonds in recent years to pump up the pension just to say it was fully funded.

More workers are hitting the 5-6% top contribution into the PPA then in the past and coupled with ever rising wages the company portion keeps rising so they can cut future payments by shifting a 4% max to the 401k. We will make our decision about June which will coincide with the annual raise/benefit meetings at corporate. This will give them a good idea of where the money will move or stay. They know people will bail on the PPA, just not how many. I can do better with the extra $4000+ a year in my 401k vs the PPA. Direct access to the PPA at the switch could really make a difference to our 401k.
 
One also has to consider payout/survivor benefits that each plan provides.

It seems I remember reading that with the PPA, if one takes a certain annuity plan the payouts cease when you’re deceased (so if you croak over 2 months after retirement then all money is lost) whereas with the 401K, you can name multiple beneficiaries who can (and will) enjoy the fruits of your labor long after you’re gone.
 
Redracer3136 said:
One also has to consider payout/survivor benefits that each plan provides.

It seems I remember reading that with the PPA, if one takes a certain annuity plan the payouts cease when you’re deceased (so if you croak over 2 months after retirement then all money is lost) whereas with the 401K, you can name multiple beneficiaries who can (and will) enjoy the fruits of your labor long after you’re gone.
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That is why you take the money with you, the hell with fdx taking care of my money!
 
So what can we do with the money in the pension plan? Can I roll it into a Roth IRA or into my 401? I'd rather do something with it then let it collect a small amount of interest
 
truckinbuddy said:
So what can we do with the money in the pension plan? Can I roll it into a Roth IRA or into my 401? I'd rather do something with it then let it collect a small amount of interest
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As far as I’ve heard we have to leave it there until we retire...it would be different if we contributed some to the total but we don’t.
 
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