FedEx Freight Diary (ala Russian Rabbit)

Found out about pension changes coming in 2020.

• Hired in or after 2020, you will not be eligible for a pension
• Instead of 3.5% match on 6% of employee contributions for the 401k, will be going to 8% match on 6% employee contributions (your 401k is receiving 14% in this scenario)
• Current employees have a one time choice to “opt out” of the pension plan in exchange for converting to the higher match 401k. It’s unknown to me whether doing so will have your current pension credits rolled over into 401k or not.
  
• Current employees can remain on their current pension and 401k plan

 

From my standpoint, if I'm here into the new year, the 8% match 401k is the better way to go for me. A couple of the guys in my barn sent me a photo of their pension statements this morning. Guys that have been with the company for many years. One a linehaul driver and one a city driver. Neither of their pension balances are that enticing to give up the extra 4.5% match

Numbers for thought on a 12% weekly contribution from my paycheck with subsequent 8% match, using an expected 6% annual return, 2% annual salary increase and 3% inflation rate off my current 401k balance of 194k. I rounded up to $10000 of salary since my bid is a $99k+ run.

 

Odd week. Sat at home one night, did lots of education while at the hubs (I like training, it's the easiest money I can make here without hitting the dock), and on Friday my run was cut and I was put onto a dock bid run. Fortunately, the dispatcher there is awesome and I got the alert on my handheld 3/4 of the way there that my next assignment was ready. Surprise double turns are always welcome!

$81,375 ytd

That's one thing I love about this work, you can have a night off in the week and still make it a respectable paycheck without using any sick time.