FedEx Freight | Seniority

For the other employees, you will have a one time option to stay in the pension plan, or have what you have earned in the plan rolled into your 401k,with a higher company match.


That is incorrect. I have not heard that. If that were the case then I would not even be considering this. My understanding is the amount you have in your existing pension WILL STAY IN YOUR PENSION and any new amounts you contribute to your 401k will be matched as previously explained. The only option you have is to stay with the existing pension system where your 401k will be matched at 50% up to 6% and your existing pension will NOT be added to but will continue to grow at the previous 2%-4% amount.
I didnt know u needed a play by play. 1. Yes it stays in account until u retire (where else). 2. They said about 1% interest is normal. 3. I'm not sure if they said that because they definitely want everyone to opt into 401k option. They said unless retiring in a couple years we'd be crazy to stay with pension.
we were told the same. Stays in the account and draws minimal interest. I hope that is wrong and we can roll it into our 401k.
 
we were told the same. Stays in the account and draws minimal interest. I hope that is wrong and we can roll it into our 401k.
My point exactly. FedEx could do the right thing and let us roll that pension into our 401k come June. That would be a huge morale booster. Unfortunately, they probably have an algorithm that lets then know how much money can hemorrhage out of the pension fund in a given year and not upset financials. So my guess is that they will NOT let us roll over the pension money into our 401ks.
 
My point exactly. FedEx could do the right thing and let us roll that pension into our 401k come June. That would be a huge morale booster. Unfortunately, they probably have an algorithm that lets then know how much money can hemorrhage out of the pension fund in a given year and not upset financials. So my guess is that they will NOT let us roll over the pension money into our 401ks.
They would have to come up with all the money
 
Asked our SCM this morning. If they got any info about the pension. He said they'll know something this summer. But then again it doesn't surprise me.
 
My point exactly. FedEx could do the right thing and let us roll that pension into our 401k come June. That would be a huge morale booster. Unfortunately, they probably have an algorithm that lets then know how much money can hemorrhage out of the pension fund in a given year and not upset financials. So my guess is that they will NOT let us roll over the pension money into our 401ks.
Our pension is 100% funded, their words. So we could drain it without a problem.
 
My point exactly. FedEx could do the right thing and let us roll that pension into our 401k come June. That would be a huge morale booster. Unfortunately, they probably have an algorithm that lets then know how much money can hemorrhage out of the pension fund in a given year and not upset financials. So my guess is that they will NOT let us roll over the pension money into our 401ks.
They don’t have a prior history of doing the right thing with pensions.
WHY START NOW?
 
I don't know how much cash they have on hand to fund pensions. I don't know what the requirements are. But even assuming they have 100% funded, cash sitting in the bank they are earning interest off that cash. Interest that would be gone if they had to pay it out all at once.

I'm all for letting us take our "portable pensions" now and roll it over. However, I can see why that's not a possibility.
 
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