Wednesday, May 14, 2008

204H ...

In the past few weeks,Employees were sent a packet explaining what and how the new pension plan was going to work, which starts in June of this year. At the very end of the packet is a statement required by the government called, "Notice of Benefit Reduction Under ERISA Section 204(h)" .

Section 659 of the Economic Growth and Tax Relief Reconciliation Act of 2001, Public Law 107-16 (115 Stat. 38) (EGTRRA) added section 4980F of the Code. Section 4980F imposes an excise tax when a plan administrator fails to provide timely notice of plan amendments that provide for a significant reduction in the rate of future benefit accrual. A reduction of an early retirement benefit or a retirement-type subsidy is also treated, for purposes of section 4980F of the Code, as a reduction in the rate of future benefit accrual. Section 659(b) of EGTRRA also amended section 204(h) of ERISA to treat the elimination of an early retirement benefit or a retirement-type subsidy as a reduction in the rate of future benefit accrual. The Job Creation and Worker Assistance Act of 2002, Public Law 107-147 (116 Stat. 21) included certain technical corrections to section 659 of EGTRRA.

This my Brothers and Sisters is the company redefining the "Purple Promise" as Corporate First! Employees come next, only to keep them from organizing. Have another hot dog!

4 comments:

Anonymous said...

Well if every old school employee remembers, it was PEOPLE, SERVICE, AND PROFITS. now is service ( Corporate) and lots of profits!!!

Bugsy said...

As info for the employees. In the Fedex eemployee handbook if a full timer averages less than 32 hours per week OVER A CONSISTENT 6 MONTH PERIOD. Their benefits may be taken away. This means if an employee averages less than 32 hours over six months every week over a 6 month period they lose their benefits according to the employee handbook. So if an employee averages 32 hours for 3 weeks and then gets 40 hours the next week this nullifies the cancellation of your benefits. And for some employees they have lost their benefits after 3-4 weeks of getting less than 32 hours per week. Is Fedex management trying to bully us again? What a shock.

Anonymous said...

thanks for the comment. but next time choose another alias. bugsys already taken

Joe Nuno said...

To all brothers and sisters of FedEx Corp, Good luck fellas at the Las Vegas convention this weekend!!!!