fedex retirement

[spike3]

Was wondering if any fedex people out there had any specifics on the fedex retirement plans?

 

[Falconjet]

Some info

FedEx currently has an A fund and a B fund. There is also a 401K plan, it has a small company match, only $500 per year (or something like that).

The primary retirement plans are:

A fund: 2% per year of service (max of 50%) and mulitply that times your high 5 year average. If your high 5 ave = 200K, and you have 25 years of service, your annual retirement would be 100K. No lump sum option at this time (I don't think) but there is a survivor benefit plan which enables you to take less up front so a surviving spouse can continue to draw a reduced amount.

B fund: Company pays an amount equal to 6% of your earnings each month into a money fund which you can invest in several different funds. You get that as a lump sum when you retire.

This is a gross simplification of the plans as I can remember off the top of my head.

FJ

Above post edited to correct error about stock options, its actually a 401K plan, as explained in a later post.

 

[spike3]

Thanks for the info FJ. Was wondering, is there any kind of medical benefits included in the retirement?
spike

 

[Purple Haze]

If you retire with 20 years or more, you keep the same medical plan options you had while working.

 

[Falconjet]

Correction

The third retirement vehicle I mentioned in my original reply is incorrect. It is actually a 401K, and you can contribute up to 15% of your eligible earnings (?) and the company will match 1/2 up to the first $1000 (or $500 from the company). For some reason last year they matched up to $1000, I don't know why. As far as I know, its back to 500 this year. Sorry for the bad info.

FJ

 

[satpak77]

Falcon

Re: the 401(k), what type of investment options do you have? Does FDX give you a few funds to choose from, or is FDX stock "encouraged" to be invested in, or what?

Are you forced to be "all stock" all the time, or in a downturn can you move your money into a bond or treasury fund?

Also, on a side note, what exactly are the medical benefits in retirement?

Seeing what happened for retirees at UAL and US Airways and some others frankly scares the dogsh** out of me, and I am trying to learn more.

thanks

 

[PurpleTail]

Satpak77-

The FDX 401K in managed by The Vanguard group and their funds. You have multiple investment fund options such as: a couple different all stock funds, a couple of balanced funds which is a mixed, some international funds, and some bond and treasury funds.

I personally do not invest in company stock for a couple of reasons. 1) pretty pricey 2) if the company is doing good than my job is secure and I'll have reliable income, if the stock is bad (down) I'll be out of a job AND short on the stock

It will be interesting to see what adjustments will be made to our retirement on this next contract which becomes amendable at the end of May of this year I would love to see both the company match go up and the B fund increase from 6% to at least 8%.

 

[satpak77]

Purple

Ok thanks brother. I am just trying to put together some info.

I currently fly for US Govt as GS-13 pilot and while I am not pulling down 200K, the retirement plan is pretty good, comparable to 401k (actually almost the same thing) and the medical/health insurance is good also. Also, end of year earnings is always in the $90-100 range, due to some night diff, holiday pay, etc.

So I can't really bitch about where I am at.

HOWEVER, like all of us on this board, flying heavy equipment and salary to go with that equipment is a definite attraction.

Right now its a toss up, new baby on the way next year, good job now, and I can retire when I turn 48, so I am taking a fine toothed comb to scenario right now.

thanks