Your Pension Plan

You are enrolled automatically in the Pension Plan once you reach age 21 and have a year of service in which you are credited with at least 1,000 hours of service.

The Pension Plan provides you with a specified retirement benefit under the Portable Pension Account (PPA) formula. You also may have a benefit accrued under the Traditional Pension Benefit (TPB) formula, which was capped on
May 31, 2008.

Funded by FedEx

It costs you nothing to participate and FedEx manages every aspect of the Pension Plan for you.

Participants who are vested in their Pension Plan benefits are entitled to receive payments at retirement or termination of employment.

Portable. Vesting refers to your non-forfeitable right of ownership to receive your retirement benefit. Once you are vested, the accrued benefit is all yours. If you retire or leave FedEx, you can choose to:

  • Begin receiving your PPA benefit immediately;
  • Roll over your PPA benefit to an individual retirement account (IRA) or to a new employer’s qualified plan; or
  • Defer receipt of your benefit, continue to receive interest credits, and begin receiving your PPA benefit payments at a later date.

Flexible forms of payment. You can receive your balance as a lump sum or a monthly annuity.

No minimum age to receive benefits. Your vested PPA benefit can be paid to you or rolled over to an IRA or another eligible plan when you leave employment with all FedEx companies.

No limits on service. There is no limit on years of credited service for benefit accrual. Eligible employees continue to accrue benefits for each plan year (June 1 – May 31) during which you are credited with 1,000 hours of service.

Simple to understand. The PPA formula is easy to understand since it is based on a percentage of eligible earnings and your age plus credited service for benefit accrual. You know what you have since your current benefit is expressed both as a lump sum and as an annuity.

Pre-retirement death benefit. In the event of your death prior to retirement, your vested benefits can be paid to your spouse or a designated beneficiary. It is important for you to have a beneficiary on file for your PPA benefit. By law, your spouse must consent to the designation of a non-spouse beneficiary.

How the PPA works

When you accrue benefits under the Portable Pension Account (PPA), you receive compensation credits and interest credits.

Compensation credits. For every year of credited service for benefit accrual, you will receive a compensation credit based on a percent of your prior calendar-year eligible earnings. The accrual percentage depends on your combined age and years of credited service for benefit accrual with FedEx at the end of the prior plan year (June 1 – May 31).

Keep in mind you must be credited with at least 1,000 hours in the plan year to be eligible for a compensation credit.

Eligible participants receive compensation credits as of
May 31 for the plan year then ending. If you terminate or retire and have been credited with at least 1,000 hours of service during the plan year, your last compensation credit will be made on the last day of the month containing your termination or retirement date.

Chart: PPA Formula

Your summary plan description, the Your Retirement Benefits (YRB) book, provides complete details on all retirement benefits at FedEx.

After you are hired at FedEx, you will receive a letter with a temporary password, which allows access to the website:

Anytime day or night, the website offers an online way for you to:

  • Estimate your Pension Plan benefits.
  • Review your accrued benefits.
  • Get answers about the Pension Plan.
  • Download pension-related documents and forms.
  • Choose or update your beneficiaries.

If you need assistance, call the FedEx Retirement Service Center (RSC) at 1.855.604.6221. Hours are 8 a.m. – 6 p.m., Central time, Monday – Friday.

Note: Not every participant will have the ability to receive online calculations from time to time either due to incomplete data or the complexity of a calculation requiring certification by the FedEx Retirement Service Center. In these cases, participants will be able to request calculations by speaking to a Retirement Service Center representative.

Next: Your 401k Plan