UPS raising retirement age from 55 to 62?
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Helen
FED EX Non Union and Management Employees.
FedEx to Modernize Retirement Plans
Recognizes regulatory changes and demographic shifts
MEMPHIS, Tenn., Feb. 27, 2007 – FedEx Corporation (NYSE: FDX) today announced new measures it is taking to modernize its retirement plans for most of its employees. These measures will take place in the coming year and are in direct response to recent legislative, regulatory and demographic changes that continue to dramatically reshape U.S. retirement benefit needs.
FedEx will continue to offer highly competitive retirement benefits funded entirely by the company and will also enhance its 401(k) plans. The company expects to spend about the same amount on its employees’ retirement plans over the long run as it would have spent under the current design and current rules.
Under the new program, most eligible employees who participate in a pension plan will begin accruing future benefits under a cash balance formula, which FedEx calls the Portable Pension Account, effective June 1, 2008. Any benefits already accrued under a traditional pension benefit formula will be capped as of May 31, 2008 and will be payable monthly at retirement. These changes will not affect the benefits of current retirees.
FedEx said its new approach to pensions resulted from three recent external factors:
• Recently adopted and proposed changes in accounting rules;
• The recently enacted federal Pension Protection Act;
• Shifting demographic trends among retirees resulting in greater life expectancy, healthier lifestyles and desire for greater control, portability and inheritability of retirement benefits.
‘Right thing to do’
“The retirement landscape is shifting dramatically and we have a responsibility to our employees and shareowners to meet these challenges head on. We have been studying these issues closely and actively participating in the debate about retirement program reform and believe that given the circumstances this is the right thing to do for our employees,” said Alan B. Graf, Jr., executive vice president and chief financial officer of FedEx Corp. “In light of the unacceptable risk and volatility that the accounting-rule and funding changes are presenting, FedEx is making necessary changes to ensure that the company will remain competitive and help our employees prepare for a comfortable retirement.”
Graf said that the Pension Protection Act, signed into law August 2006, allows FedEx to enhance its 401(k) retirement plans and to expand the number of workers covered by its Portable Pension Account, a cash balance feature that FedEx introduced in 2003.
FED EX Non Union and Management Employees.
FedEx to Modernize Retirement Plans
Recognizes regulatory changes and demographic shifts
MEMPHIS, Tenn., Feb. 27, 2007 – FedEx Corporation (NYSE: FDX) today announced new measures it is taking to modernize its retirement plans for most of its employees. These measures will take place in the coming year and are in direct response to recent legislative, regulatory and demographic changes that continue to dramatically reshape U.S. retirement benefit needs.
FedEx will continue to offer highly competitive retirement benefits funded entirely by the company and will also enhance its 401(k) plans. The company expects to spend about the same amount on its employees’ retirement plans over the long run as it would have spent under the current design and current rules.
Under the new program, most eligible employees who participate in a pension plan will begin accruing future benefits under a cash balance formula, which FedEx calls the Portable Pension Account, effective June 1, 2008. Any benefits already accrued under a traditional pension benefit formula will be capped as of May 31, 2008 and will be payable monthly at retirement. These changes will not affect the benefits of current retirees.
FedEx said its new approach to pensions resulted from three recent external factors:
• Recently adopted and proposed changes in accounting rules;
• The recently enacted federal Pension Protection Act;
• Shifting demographic trends among retirees resulting in greater life expectancy, healthier lifestyles and desire for greater control, portability and inheritability of retirement benefits.
‘Right thing to do’
“The retirement landscape is shifting dramatically and we have a responsibility to our employees and shareowners to meet these challenges head on. We have been studying these issues closely and actively participating in the debate about retirement program reform and believe that given the circumstances this is the right thing to do for our employees,” said Alan B. Graf, Jr., executive vice president and chief financial officer of FedEx Corp. “In light of the unacceptable risk and volatility that the accounting-rule and funding changes are presenting, FedEx is making necessary changes to ensure that the company will remain competitive and help our employees prepare for a comfortable retirement.”
Graf said that the Pension Protection Act, signed into law August 2006, allows FedEx to enhance its 401(k) retirement plans and to expand the number of workers covered by its Portable Pension Account, a cash balance feature that FedEx introduced in 2003.
In addition, demographic trends make it apparent employees need to be more active in saving for their retirement and participating more fully in 401(k) retirement plans. “The future is clear: Employees are living and working longer and retirement plans need to offer greater flexibility,” said William J. Cahill, FedEx corporate vice president, human resources. “Updated FedEx 401(k) plans will make saving easier and investments more diversified so retirees can better control their finances
MR_Vengeance
United Parcel Survivor
i cant imagine whole bunch of old dudes doing delivery in their 60's.
G
Gonna get screwed
Guest
The fedex plan doesn't sound bad. I'm sure UPS willl follow the lead of Fedex, except UPS will throw in a cost savings by screwing the current non-union and management emloyees. Look for news on Wednesday. Cost savings will be announced with poor earnings. Stock will take a dive...again. JMHO
BCFan
Well-Known Member
thats great ill have 34 years in at 57 ....damn i hope my hoveround has a strong battery
BC
Sammie
Well-Known Member
UPS has followed Fedex's lead more than once; you'd be quite surprised. And I'm not slamming this company or that company. After all, we're in the same profession so adopting a good idea and running with it may not be all that unusual within industries.
tieguy
Banned
Lot of rumors some wilder then others. I think they will eventually change from a private pension plan to the 401 K with six percent match. Seems to be the industry trend. Not a bad deal if you manage wisely.
