There are 2 compenants of the PPA. First, there is the annual compensation credit that is deposited each May, in your case, as you stated is 8%. So you take your calendar earnings from the previous year mulitple by 8% and that should be the amount of your deposit. If you made $75,000 in CY 2020 mulitplied by 8% your deposit in May of 2021 should be $6,000. Then at the end of each quarter you earn 1% of your balance as an interest deposit. If you account balance is 82,551.00 your end of quarter interest deposit would be $825.51, bringing your new balance to $83,376.51, the next quarter your interest deposit would be $833.76 bringing your new balance to $84,210.27 and so on.
Portable pension
- Thread starter NC man
- Start date
falcon back
Well-Known Member
There are lots of IRS reasons neither of those will happen.
If you retire in say Jan or March do still build up the comp credits or get nothing but interest each qtr
falcon back
Well-Known Member
You must work 1000 hrs after June 1 to get a deposit the next May. That usually means late Oct or early Nov. for full timers. If you work till Jan. the only thing you get is more vacation payout when you retire. I believe full timers accrue about 16 hrs of vacation for each month they work once the fiscal year starts. Depending on your years of service.
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Serf
Well-Known Member
Well of course. Btw, did we actually get an overall consensus about who’s eager to switch over or not so much?
McFeely
Huge Member
I think for most here it depends on how close someone is to retirement. Those getting the 8% credits are less likely to switch than those getting only 5% in the PPA.
I'm still on the fence as I'm still on the lower end of compensation credits, but not horribly far from retirement. 401k has done insanely well the last 12 months but I know that's not going to stay that way every year.
falcon back
Well-Known Member
Seems like those that are close to retirement, it would almost be a push. Neither plan is gonna make you rich or break you in a couple of years. If you look at the market today, you don't want anything to do with it. Tomorrow could be totally different. Whatever choice you make, I am sure you will 2nd guess yourself a few times.
Freightwizard2012
Member
It also depends on if you want to stay with Fedex long-term. The longer someone is with the company, the more there is to gain from keeping the pension. Of course that’s assuming they don’t screw us over eventually by freezing the pension.
How about the transition credits?
falcon back
Well-Known Member
Once you work the 1000 hrs after June 1, when the next June rolls around, you will get whatever Portable Pension deposit you are eligible for. Depending on your age and years, it could be 8% or less. If you plan on leaving and wait till January like was asked, the extra time you work past getting your 1000 hrs will not increase your PPB deposit, but it will increase your vacation buyout when you leave. That is why November is a frequent retirement time. You have usually gotten your 1000 hrs by then and there is nothing gained as far as pension reasons to stay.
Thanks. Question.. I’m in the 6% age range but receive 8% on the Compensation Credit..why is that?
Freightwizard2012
Member
I would assume that’s because the sum of your age and years of service puts you in the 8% bracket.
McFeely
Huge Member
I would assume this ad well. It’s based on age + years of service, not solely age-based.
LOL that makes me 83 YO in Fed Ex years!
Stat41
Well-Known Member
97!
Time to retire!
