its stays frozen in a interest savings account like you would bet at a bank which is not much interest. You cannot roll it over or cash out until you retire
FedEx Freight | New 401k Plan
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if you are that far away from retirement i wouldnt go into new plan.. An added 2% is not much at all plus it also depends on how much you put into it then add 2%
you CANT roll it over at all unless you quit
since we started w Vanguard i have been averaging 11.9% plus i have been w company 22yrs.so my pension money is also going great, i am definitey staying w old plan
there are going to be a boatload of people who are going to get screwed based on the decisions they think they know what there doing instead of going to a professional and ask them to determine which plan is better based on age,longevity, years of service and yearly income. 1 agree w you, its only 25 more undr the new plan and that is also based on how much you actually contribute plus again if you also pick the right fund in your 401 k plan and not put it into a target fund which might average around 6% if lucky minus inflation. Those are NOT good numbers at all!! Just my opinion
in the 22yrs that i have been with the company fedex has only once stopped 401k contributions and that was 2008 and was one of the first LTL companies to also start re contributing when the economy got better. all the other trucking companies dont even come when they started contributing again. Also many many companies nationwide did this
LTLIndentured
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Is the 8% match dollar for dollar or .50 per dollar contributed?
ABSOLUTELY, the best explained quote and answer i have read on this thread that makes TOTAL SENSE!! I have 10yrs to go till retire, max out on 401k, i am 55, been w company 22yrs, so therefore staying w old plan for sure! :)I think there are several factors to consider. The least important to me is any savings the Company MAY realize. Stay with me for a minute.
This falls into a category I touched on in the Union Debate days. When there is a benefit that can be provided by the Company, with a lower actual cost to them (Tax benefit/group scale, etc.) than the value of the benefit to me/us, we should push for that. The term "negotiate" was used then, but "encourage" fits just as well, today. We have encouraged this type of change for some time. It seems they have listened. The fact that we have the option makes even better, IMHO.
Now on the surface the potential Co. savings seems obvious. Up to 9.5% vs up to 8%. Key words being "up to". Think about how long it takes to reach the max on pension credits. http://i.imgur.com/rknR8pW.jpg Many will NEVER see that. If they ever do, most of their time will accrue at much lower rates.
Equally significant: The 401k match starts almost right away. Year 1. So the potential Co. cost is much higher, BUT typically participation is NEVER 100%. So, that lowers the actual cost.
Bottom line: I'm not here to maximize the cost to the Company, but rather maximize the benefit to me. If I can increase my return, even while the Company lowers their cost overall, THAT is a win/win.
Keeping it as short as possible, we can look at strategy later. I'm sure we will. But the shortest version, it seems to me, is...
If you are fairly close to retirement (and at max on pension), stay put. Absolutely.
If you have a long way to go before retirement, take the higher 401k. Absolutely.
Those somewhere in the middle? A lot depends on risk tolerance and where you'd actually put that $$.
Here are the contributions. This is probably better than most large corporations.
The tiers for employee contributions and company match:
1.0% / 2.0%
2.0% / 4.0%
3.0% / 5.0%
4.0% / 6.0%
5.0% / 7.0%
6.0% / 8.0%
First column is your contribution. 2d column is the company match.
So, for example, if you made $1000 a week and you contribute 6.0% to your 401k, that's $60. The company would match your $60.00 at 8% or $80.00 for total contribution for that paycheck of $140.00. Do that 4 times a month that's a total of $560.00 of which only $240 is your own money and the balance is from FedEx.
As Soochee stated, you guys that have been with the company awhile should probably stay with the original plan. Hopefully the company will actually publish or have access to some benefit advisers that could provide some professional advice about switching.
I think it is only a matter of time before they close the pension and force those who remain into the 401(k). If the majority of the younger drivers switch out and new hires are blocked from it now that leaves the ones who will be retiring in the next 10 years. Now that we finally are getting a higher match we need to push for a broader choice of funds.
No F-bdy Bs
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Agreed.
Vanguard has probably 200+ funds available. Only 20 or so are we eligible for.
There are some VERY TASTY ones we can't touch that are doing 30%+ over the last 5 yrs!
"THETRUTH"
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WOW! Did not know that. I got mine manage. It's working out pretty good for me.
Thanks Trump!
And this is the reason everyone should add a Roth IRA to their Vanguard account. Add in the thousands of other mutual funds and ETF's outside of Vanguard too.
No F-bdy Bs
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Someone dip their phone in Crisco?
Let me try a better one. Dont know why its side ways
we were told if you stay in that things will continue exactly as before. if you stay in you don't get the 8% 401k match. opt out they freeze pension and will continue to hold it until you quit, fired or retire. all they while it will continue to draw regular savings account interest, probably around 1%. if that's wrong i'm only going by what I was told.