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
'FedEx employees should remember that updating a will is only part of the divorce process—beneficiary designations and trusts must also be reviewed to keep estate plans aligned with their intentions.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
'FedEx employees often underestimate how quickly outdated beneficiary designations can unravel even the best estate plans, making regular reviews after major life events essential.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
1. Why wills alone may not be sufficient in estate planning after divorce.
2. How outdated beneficiary designations can override a will.
3. Practical steps FedEx employees can take to align estate plans with their intentions.
Divorce is often considered the final stage in dividing assets and property. However, for many Fortune 500 employees, one overlooked detail can upend years of careful planning and unintentionally allow an ex-spouse to receive a significant inheritance. If beneficiary names on key accounts and policies remain unchanged, even the most thorough will cannot stop this outcome. Because certain assets transfer directly to the listed beneficiary without going through probate, retirement plans, life insurance policies, annuities, and some bank accounts are especially at risk.
Many people don’t realize how prevalent this issue is. According to Wealth Enhancement financial professional Patrick Ray, 'Your ex‑spouse is typically treated as if they predeceased you for the purposes of your will under many state laws once a divorce is finalized.' This may remove them from the will, but not from all accounts. That means that while state law might automatically exclude an ex from a will, it does not override beneficiary designations on FedEx employee retirement accounts and insurance.
Why Wills Are Not Enough
Some believe that updating a will by itself is sufficient to carry out their wishes. However, wills have limitations that can undermine even the most thorough planning. For example, a will that is valid in one state may no longer be effective in another, and states like Florida may require a new will after divorce. For Fortune 500 employees relocating between different states, intestate succession laws could intervene, transferring property to unintended relatives.
'The biggest misconception is that your will covers everything,' says Patrick Ray. The reality is that many accounts pay directly to the person listed as beneficiary, bypassing probate altogether.
Beneficiary Designations Override Wills
Beneficiary designations are often the single biggest risk in estate planning. Retirement funds such as 401ks, IRAs, pensions, annuities, life insurance, and payable-on-death bank accounts pass directly to the person listed. So for Fortune 500 employees, if an ex-spouse is still listed, that person will receive those assets—regardless of what the will states.
According to Wealth Enhancement financial professional Michael Corgiat, 'A will only controls assets in your sole name without a designated beneficiary.' Overlooking even one outdated designation could undo a lifetime of planning and result in benefits going to someone unintended.
Federal Law Can Override State Protections
When federal law applies, the situation becomes more complex. Retirement programs such as 401ks and pensions fall under ERISA, which requires administrators to honor the named beneficiary, even if that person is an ex-spouse. For Fortune 500 employees covered under ERISA plans, this federal rule takes precedence over state divorce laws.
In some cases, divorce decrees may require an ex-spouse to remain as beneficiary to satisfy obligations like child support or alimony. 'It’s crucial to verify what your divorce orders actually state,' warns Corgiat.
Beyond Wills: Trusts Provide Additional Coverage
Employees and retirees can strengthen their estate planning by using trusts alongside wills and beneficiary forms. Revocable and irrevocable living trusts can help channel assets more effectively and lessen the chances of an ex-spouse receiving an unintended inheritance. For Fortune 500 households, trusts can offer adaptability, protection from creditors, and potential tax advantages, depending on the type selected.
Prenuptial and postnuptial agreements can also help by clearly defining inheritance rights, reducing disputes, and offering clarity in the event of divorce.
The Consequences of Overlooking Updates
Failing to update beneficiary designations, wills, or trusts can erase years—even decades—of preparation. For Fortune 500 professionals, this could result in large retirement accounts or life insurance payouts going to an ex-spouse instead of children or a current partner. Estate and probate laws vary considerably by state, and ERISA introduces another layer of complexity, making it critical to coordinate with professionals.
Corgiat emphasizes, 'Attempting to handle these decisions without professional help is risky.' Working with financial advisors and attorneys can help align estate planning with current wishes.
Practical Steps to Stay Aligned
To mitigate risk, employees should:
1. Update beneficiary designations promptly after divorce.
2. Confirm that divorce orders are being followed.
3. Review wills and trusts after major life events such as marriage, divorce, childbirth, or relocation.
4. Consider using trusts to centralize distribution of assets.
5. Consult with financial advisors and attorneys to navigate state and federal regulations.
Recent data shows that over half of U.S. households had retirement accounts such as 401ks or IRAs
1
—which highlights how common it is for Fortune 500 retirees to hold assets that might pass through outdated beneficiary designations.
Even if a will is updated, an ex-spouse could still receive benefits through overlooked accounts. Trusts, updated designations, and careful review of divorce orders are key tools for aligning estate documentation with long-term wishes.
Think of it like home protection: while a strong front door (the will) may be locked, open side gates (outdated beneficiary designations) can grant entry. Fortune 500 employees should confirm that every account and document is consistent with their intentions—so their plans function as intended.
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Articles you may find interesting:
- 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?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- 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?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. American Society of Pension Professionals & Actuaries. ' More Than Half of U.S. Households Have Retirement Accuonts, CRS Says ,' by John Iekel. March 4, 2025.
Other Resources:
1. Hutchinson Thomas. ' The importance of updating your will after a divorce .' May 4, 2024.
2. Waypoint Legal. ' Beneficiary Designations: Why You Should Regularly Update Them .' March 4, 2025.
3. Investopedia. ' Divorce and 401(k): What You Need to Know ,' by Greg Daugherty. Feb. 7, 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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