FedEx : Closes Pension Plan to New Hires - Market Screener
FedEx Corp. is closing its pension plan to new U.S. hires starting next year, joining the ranks of large U.S. companies phasing out guaranteed retirement benefits.
The shipping giant instead will launch a new 401(k) plan at the start of 2021 with a higher company match. Under the new plan, FedEx will contribute up to 8% of employee salaries, if employees contribute 6% of their salary.
FedEx is part of a shrinking group of U.S. companies still allowing employees to accrue traditional pension payments. Its chief rival, United Parcel Service Inc., closed its pension plan to new workers in 2016, and FedEx said in a memo to employees Monday that just 22% of Fortune 50 companies and 11% of transportation companies offer pensions to new hires.
FedEx Corp. is closing its pension plan to new U.S. hires starting next year, joining the ranks of large U.S. companies phasing out guaranteed retirement benefits.
The shipping giant instead will launch a new 401(k) plan at the start of 2021 with a higher company match. Under the new plan, FedEx will contribute up to 8% of employee salaries, if employees contribute 6% of their salary.
FedEx is part of a shrinking group of U.S. companies still allowing employees to accrue traditional pension payments. Its chief rival, United Parcel Service Inc., closed its pension plan to new workers in 2016, and FedEx said in a memo to employees Monday that just 22% of Fortune 50 companies and 11% of transportation companies offer pensions to new hires.
