Redracer3136
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True, we can take the lump sum AFTER Uncle Sam taxes the :: out of it!!That is why you take the money with you, the hell with fdx taking care of my money!
True, we can take the lump sum AFTER Uncle Sam taxes the :: out of it!!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
When you leave employment...you can’t do anything with it while you’re still employed here.There is no minimum age to cash out. You can also roll it on to an IRA or other eligible plan.
That could very well be true. I know with my Teamsters Pension, I had NINE different benefit payout plans to select from. Three were out of the question, as they provided no survivor benefits. The other six DID provide survivor benefits, with several options: Lump sum death benefit to your spouse, smaller lump sum death benefit (with monthly payments thereafter), LARGER lump sum death benefit (with SMALLER monthly payments thereafter), and so on. It’s quite the process! Your form must be signed by you and your spouse and notarized at that time. Just make sure you select the plan that works for you, because once it’s filed, it can’t be changed.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.
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.
That's true, but goes even further back than that. For a couple decades (or more), the Dems have wanted access to that massive amount of untaxed wealth. They do want to tax it now rather than wait until it's withdrawn. All in order to pay for even more social programs. They also believe it's just not fair that some (who sacrificed) have so much, while others do not.Some of you have a short memory, the Obama administration and the Democrats were thinking about taking everyone's 401 k and pay you back in monthly payments when you retired. If the Democrats ever regain control of the Senate and the presidency I wouldn't trust your 401 to be yours
You are correct....and dont forget the government BAIL IN laws that were passed ....where they can sieze up to 2/3 the value of 401 k to pay down the national debt......Some of you have a short memory, the Obama administration and the Democrats were thinking about taking everyone's 401 k and pay you back in monthly payments when you retired. If the Democrats ever regain control of the Senate and the presidency I wouldn't trust your 401 to be yours
at Conway they did this and gave up to a 11 percent match when they ended pension well few years later then that huge match was taken away so expect to be back at 3.5 percent in five years.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.
I can remember it was when the union was knocking on the door ..just sayinat Conway they did this and gave up to a 11 percent match when they ended pension well few years later then that huge match was taken away so expect to be back at 3.5 percent in five years.
pension fund trustee kevin mccaffrey, making yrc great, for his & hoffa's benefit?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 $$.
Nah, we’ll just retire.What I read on the pension website is that you either quit or reach 65.... thats your 2 options for getting ahold of your money.
Not at all. I didn't see an answer to my question here. Still seems the only way to get your pension money is to quit. But that was only half the equation.For the poster of "Seniority" you must have missed the new 401 topic covered already.
Quiting is one option. Retire#2. #3Roll it in to your 401and get the new 401 company match. #4Leave it alone and still receive accrued interest to the pension and stay at the current 401 company contribution without the new company match. What part of these equations aren't you understanding?.Not at all. I didn't see an answer to my question here. Still seems the only way to get your pension money is to quit. But that was only half the equation.
Too much to comprehend?