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FedEx Freight | Pension 401k or portable pension

Which one are you choosing and why?

  • Total voters
    88
  • Poll closed .
I'm going 401. June 1,2019-May 31, 2020 I got a whole 930 in my pension fund. My 401K company contribution was more than double that.

The 401K offers more flexibility and I can tap into it in the event of an unforseen emergency.
 
DOTFXF said:
The 401 company contribution is not guaranteed. The pension is. I'm keeping the pension and the old 401. I'm 10 years from retirement and 12 years vested in the pension.
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15yrs in 12 more to go I'm staying in the pension plan. Fed ex won't guarantee that 9%. Pretty sure at some point they will change that amount just like they got us back in 2008. Do what you think is right for you and your family.
 
By traditional standards, I have a little over 30 years before retirement and I've been at FedEx for 2 years. I'm hoping to retire in 20 years by investing in ETFs, my Roth IRA and my 401K.

It's on truckingboards now. Somebody will pull this up in 20 years and either compliment me or call me a liar. Time will tell.
 
Well I'm staying with the pension contribution from FedEx. I want every penny I can get from them since I'm on the lowest pay grade. Making them keep putting 6% in the pension and 3.5% in my 401k adds up to a grand total of 9.5% from them. I'm wanting out at 62 in less than 4yrs and I'm supposed to have approximately $120k in my pension at 62. That is with the good Lord willing. Not complaining but the long workshifts are starting to take a toll on me. The paycheck is the only thing good about it. Wish I could quit sooner but just can't do it.
 
Purplepromised said:
Got 16 years until retirement and I'm keeping pension. Was going to say why is this even a debate the other way.
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Employees in your position are the ones that have a choice to make.
5yrs from retirement is obvious, as is someone with only 5yrs in. Yeah, you get a 9.5%, but you don't reap that for many years, and it takes a long time to get there.
Middle of the road could go either way. With 15yrs left, historically you'd still have ample time make more with the new match, but market swings and all that. But, the middle guys will likely come out fine either way.
 
silent trucker said:
I'll personally be surprised if the pension still exists in 5 years. Very good chance they'll shutter it, and roll the money into everyone's 401 k, down the road, to eliminate the administrative costs. If they wait 5 years to do this, most of the "baby boomers" will have retired, thus limiting the total cost of the conversion...
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That's what I'm expecting.
 
silent trucker said:
I'll personally be surprised if the pension still exists in 5 years. Very good chance they'll shutter it, and roll the money into everyone's 401 k, down the road, to eliminate the administrative costs. If they wait 5 years to do this, most of the "baby boomers" will have retired, thus limiting the total cost of the conversion...
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Wouldn't surprise me. They have tried twice to convince everyone at my center that we'd be nuts not to take the 401k option. Not to mention pretty much every Monday meeting.
 
Missing from this discussion is WHAT options a person chooses for the 401k.

I spoke to one guy, long term veteran, who ALWAYS puts 100% into the safest option. Always has, and will continue to. Stable Fund, I think it's called.

That guy should remain in current pension/401k option since it is equally safe, has a significantly BETTER return, AND equals a higher total contribution.

So, think it through. Not a one size fits all, cut and dry decision.
 
All of you, especially the younger guys, need to look at market returns. 8% is a real loser. The T. Rowe Price S&P Index fund has averaged 14.57% over the last ten years. This year to date, it's at 17.12%. Taking a fixed return makes no sense in a constantly changing economy. Index funds invest in 500 different stocks and are professionally managed. It's a no brainer to make them the core of your investment or retirement plan.
 
indy1 said:
1 - I like the pension because I can pass it on to my wife if I die first . 2- I also like different revenue streams. 3-if they want me out of it !! I'm staying in...
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You can pass on a 401k to your wife as well. Different revenue streams makes sense, but only if you're at the 6% on the pension or close to it.

"If they want me out of it I'm staying in". That's the most foolish argument in this decision. If FedEx wanted you out of it, they could just shut it down and let it build interest until you retire.

While I don't trust anything that comes from corporate, I don't go into everything expecting a hammer to drop. If FedEx said said "hey you can get Cadillac insurance or stay with UHC" you'd say "if FedEx wants me to leave UHC, I'm staying with UHC". Screwing yourself thinking your sticking it to the man.

Arguments like this make it really hard to get other employees on your side when the company does do something that affects you negatively. All people here is "rabble rabble rabble blah blah blah" because it's constant foolish arguments.

Do the math and make the best decision you can with the information you have.
 
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