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Healthcare Provider Update: FedEx's healthcare provider is primarily Cigna, which partners with the company to offer health insurance solutions to its employees through a range of plans, including High Deductible Health Plans paired with Health Savings Accounts. In 2026, FedEx employees may face significant healthcare cost increases, mirroring a broader trend across the nation. With the expected elimination of enhanced ACA premium subsidies, some workers could see their out-of-pocket premium costs surge by over 75%. Coupled with the anticipated double-digit rate hikes from major insurers and rising medical expenses, the financial burden on employees is poised to escalate sharply, potentially impacting their overall healthcare affordability. Click here to learn more
Understanding Social Security can help ensure a financial future even for FedEx employees facing unexpected challenges in life, says Patrick Ray of The Retirement Group. 'We recommend talking with a financial advisor about your benefits to see if they fit your needs.
'Social Security benefits are very important to many FedEx employees and retirees,' says Michael Corgiat, a financial expert with The Retirement Group. A professional advisor can help you understand these benefits and help you protect your financial future amid life's uncertainties,' says'
In this article:
1. Social Security and Retirement Planning: Understanding how Social Security can be a supplement to income for FedEx employees and retirees - and why it should not be the only income in retirement.
2. Family Benefits under Social Security: Explore how spousal death, divorce, and disability affect eligibility and benefits distribution to family members.
3. Strategic Application of Benefits: Information on how to apply for Social Security benefits 'to maximize financial support for critical family events.'
Social Security benefits are very important to many FedEx employees and retirees,' says Michael Corgiat, a financial expert with The Retirement Group. 'Working with a professional advisor can help you understand these benefits and protect your financial future amid life's uncertainties.'
Social Security is among the most basic retirement income concepts for FedEx employees and retirees. Social Security is another retirement income stream. It should never be the only source of income, but it can help in times of need. A family dealing with death of a spouse, disability, divorce, or dependent children/parents should know the benefits they dispose of to ease the financial strain they may be experiencing. How does family benefit work?
You will usually get a percentage of the Social Security benefit, the entire Social Security benefit, or a family maximum. An example of how this differs is what we hear from FedEx employees and retirees.
Answer: That question comes from many FedEx employees and retirees - understandably so. Yes, spousal benefits are available to a couple who has been married one year or longer. They may collect up to 50 percent of working spouses Primary Insurance amount - Full Retirement Age if they wait until their own Full Retirement Age - or they may collect another reduced amount starting at Age 62.
Answer: Yes. If you were married to your ex-spouse for 10 or more years, they are unmarried and age 62 or older. You receive the same benefits as a current spouse.
Answer: It comes from working with a lot of FedEx employees and retirees about how death can affect the family financial situation. This question comes up a lot, therefore.
In the answer, there are two parts. Yes. Your unmarried dependent children under 18 years old, 19 if in a primary or secondary school, or disabled as long as disability occurred before age 22 years old are entitled to 75 percent of the PIA of the deceased parent up to a family maximum. For any child under age 16 your spouse is also entitled to 75 percent of the PIA up to a family maximum. In this situation Social Security has come in immediately to help the family with additional income.
In addition, at age 60 a widower can take Social Security from the deceased spouse. This is two years before the traditional spousal benefit. And as with any situation involving taking Social Security early, you will pay a percentage reduction of the full benefit.
Answer: It's another worry for many FedEx employees and retirees with children. Yes, exactly the same eligibility rules apply as if you were deceased. The only change: your children would get only 50 percent of your PIA.
Answer: Yes. Depending on the circumstances, your dependent parents may collect off your record if you are deceased and you provided more than 50 percent of their support before you died. That's the least common family benefit. 1 Remember that a family member collecting Social Security benefit off of your record will not reduce your benefit. Making applications for the benefits your family and you deserve can create significant income for your family and ease the strain a life-changing event may place on your resources.
We speak with lots of FedEx employees and retirees over the years and we know everyone is different. Social Security benefits are complicated but our financial advisors can help you determine when and how to apply. A nationwide group of financial advisors known as The Retirement Group.
We only plan for and design retirement portfolios for transitioning corporate employees. And each representative of The Group has been hand-picked by The Retirement Group in select cities throughout The United States. Each advisor was screened for pension expertise, financial planning experience, and portfolio construction knowledge.
TRG believes in teamwork to find solutions to our clients' problems. A conservative investment philosophy guides the Team in constructing client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks, and other investments. They handle Retirement, Pensions, Tax, Asset Allocation, Estate, Elder Care issues. This document uses different research tools and techniques.
All attempts to estimate future results involve assumptions and judgments and are therefore only tentative. The law, investment climate, interest rates, and personal circumstances will all change and will affect how accurate our estimations are and how appropriate our recommendations are. Such a plan requires ongoing change sensitivities as well as constant re-examination and alteration of the plan.
So, update your plan a few months before your expected retirement date and do an annual review. Nothing contained herein shall be construed as an attempt by the Retirement Group, LLC, or any of its employees to practice law or accounting. We look forward to speaking with any tax and/or legal professionals you may select regarding the implications of our recommendations.
Through your retirement years, we will continue to update you on issues affecting your retirement via our complimentary and proprietary newsletters, workshops, and periodic updates. Or call us at (800) 900-5867.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
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- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
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- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
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Sources:
1. 'Benefits Planner: Retirement.' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/ageincrease.html . Accessed 23 Feb. 2025.
2. 'Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/wep.html . Accessed 23 Feb. 2025.
3. 'How Do I Apply for Social Security Retirement Benefits?' Social Security Administration, 24 Apr. 2024, www.ssa.gov/faqs/en/questions/KA-01891.html . Accessed 23 Feb. 2025.
4. 'Benefits Planner: Retirement | Social Security Benefits for Federal Workers.' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/fedgovees.html . Accessed 23 Feb. 2025.
5. 'Quick Calculator.' Social Security Administration, last modified 27 May 2014, www.ssa.gov/OACT/quickcalc/ . Accessed 23 Feb. 2025.
What are the implications of the Funding Target Attainment Percentage for FedEx Corporation employees, and how does it impact the security of the pension benefits offered by FedEx Corporation? This question seeks to explore the nuances of the funding target attainment percentage as reported in the annual funding notice, examining how this metric not only reflects the financial health of FedEx Corporation's pension plan but also how it affects employee confidence in future benefit payments and retirement planning.
Funding Target Attainment Percentage: The Funding Target Attainment Percentage for FedEx Corporation indicates the degree to which the pension plan is funded. A percentage of 101.33% for 2022 suggests that the plan has sufficient assets to cover its liabilities, providing security for employees' pension benefits. This high percentage likely increases employee confidence in the stability and reliability of their future pension payouts, essential for long-term retirement planning.
How does the merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan influence the benefits currently available to FedEx Corporation employees? This question aims to delve into the practical changes that may arise due to this merger, assessing whether it aligns with employee expectations regarding their pension benefits and how the transition process is managed by FedEx Corporation.
Merger of Pension Plans: The merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan appears to have been strategically managed to maintain benefit stability. Despite increasing liabilities by 5.3%, the merger was structured to ensure no negative impact on the benefit amounts payable to participants from either plan, preserving the expected pension benefits for all affected FedEx Corporation employees.
In terms of investment strategies, what measures does FedEx Corporation implement to ensure that its pension plan investments align with the long-term liabilities expected to be paid out to retirees? This question encourages an exploration of the investment policies in place, examining the asset allocations and risk management strategies that FedEx Corporation employs to ensure sustainable funding for its pension obligations, which could potentially include detailed analyses of stocks, debts, and alternative investments.
Investment Strategies: FedEx Corporation employs a diversified investment strategy across equities, fixed income, and alternative investments, aiming to meet long-term pension liabilities. This approach, which includes both active management strategies and the limited use of derivatives, is designed to generate returns that exceed market indices, thus ensuring adequate funding of pension obligations.
What options do employees of FedEx Corporation have for accessing their pension plan statements, and how frequently are these statements generated? The focus here is to understand the communication strategies employed by FedEx Corporation regarding pension benefit statements, including technological access points and the importance of these documents for employee financial planning.
Pension Plan Statements: FedEx Corporation provides annual pension plan statements through their Retirement Service Center, available electronically each fall. Employees can access their statements online or request them if notifications are not received, ensuring transparency and aiding in personal financial planning.
How are contributions to the FedEx Corporation Employees’ Pension Plan determined, and what role do excess contributions play in the plan's overall funding strategy? This question aims to educate employees about how the company balances mandatory contribution levels with potential excess contributions, exploring how these factors interact to influence the plan's solvency and employee benefits.
Contributions to the Pension Plan: Contributions to the FedEx Corporation Employees' Pension Plan are calculated to meet at least the minimum legal requirement and potentially include voluntary excess contributions. These excess contributions can help manage the plan's funding level and ensure its solvency, benefiting overall pension security for employees.
What types of benefits are guaranteed under the Pension Benefit Guaranty Corporation (PBGC) for FedEx Corporation employees, and what limitations exist that employees should be aware of? By focusing on the guaranteed benefits, this question prompts a discussion on the security of specific benefits provided by FedEx Corporation and highlights limitations, allowing employees to understand their rights fully.
PBGC Guarantee: The Pension Benefit Guaranty Corporation guarantees certain types of benefits for FedEx Corporation employees, such as pension benefits at normal retirement age and most early retirement benefits. However, there are limitations, such as exclusions for benefits without vested rights and recently increased benefits, which employees should be aware of to fully understand their pension security.
In what ways does the FedEx Corporation plan to adjust its pension funding strategy in light of changing federal laws that impact pension obligations? Employees are encouraged to consider how legislative changes influence corporate policies surrounding retirement benefits and the proactive strategies FedEx Corporation might take to remain compliant while ensuring the security of employee pensions.
Adjustments to Funding Strategy: FedEx Corporation is likely to adjust its pension funding strategy in response to legislative changes affecting pension obligations, such as those introduced by recent acts adjusting how pension liabilities are calculated. This proactive approach aims to ensure compliance with new laws while continuing to secure the financial health of the pension plan.
What are the steps that FedEx Corporation employees must take if they are considering retirement, particularly in how to navigate the pension plan and gain access to their benefits? This question aims to provide clarity on the retirement process, ensuring that employees are equipped with the necessary information regarding required documentation, timelines, and points of contact within FedEx Corporation.
Steps for Retirement Planning: Employees considering retirement should contact the FedEx Retirement Service Center to navigate their pension plan benefits. This process involves understanding necessary documentation, timelines, and available support, facilitating a smooth transition into retirement.
How does FedEx Corporation plan to manage potential funding shortfalls in the pension plan, and what mechanisms are in place for notifying plan participants should such an event occur? Employees would need to understand the proactive measures put in place by FedEx Corporation to address funding-related challenges while also knowing what this means for their benefits.
Managing Funding Shortfalls: In the event of potential funding shortfalls, FedEx Corporation has policies in place to manage such situations, including strategic contributions to mitigate shortfalls. The company maintains transparency with plan participants about funding levels and any significant changes affecting the pension plan.
For those seeking more information about their pensions and retirement options, how can FedEx Corporation employees contact relevant departments, and what resources are available for assistance? This question provides an opportunity for employees to familiarize themselves with contact points such as the FedEx Retirement Service Center, emphasizing the importance of open communication channels for addressing inquiries related to their pensions. Feel free to consult the provided document for more in-depth exploration of these topics.
Contacting for Pension Information: FedEx Corporation employees seeking more information about their pensions or retirement options can contact the FedEx Retirement Service Center. This center provides essential resources and support, ensuring employees have access to all necessary information regarding their retirement planning.
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