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Thread: FedEx to transfer $6B in pension plan obligations to MetLife

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    Default FedEx to transfer $6B in pension plan obligations to MetLife

    https://www.bizjournals.com/memphis/...ations-to.html


    FedEx plans to transfer $6 billion of its U.S. pension plan obligations to Metropolitan Life.

    The Memphis-based company announced May 8 it had entered into an agreement with Metropolitan Life Insurance Co. to purchase a group annuity contract and transfer responsibility of pension benefits for 41,000 FedEx retirees and beneficiaries.


    “FedEx is committed to maintaining financially secure pension benefits for our retirees and their beneficiaries,” said Alan Graf Jr., executive vice president and CFO of FedEx Corp., in a release. “This transaction better positions FedEx to manage future pension plan costs, and retirees will receive the same pension benefit from a highly rated insurance company. Transferred pension benefits will be protected by the State Guaranty Association in the state where the retirees live.”

    The transaction is expected to close Thursday, May 10, and as Graf mentioned, the benefits for the 41,000 recipients will not change.

    According to the release — as a result of the transfer — FedEx will reduce its U.S. pension plan liabilities by about $6 billion. FedEx will fund the purchase of the group annuity contract via assets from its “Pension Plans.”

    the old FedEx and Viking Employees retirement that got a fair retirement of $3500 a month, and for Viking set retirement according to the years of service

    Now saying that, it's not good, why ? it's gonna shrink the fund quick, in my opinion.
    Because pension funds grow by new members contributing in the trust fund...now they won't have funds going into their old pension fund and at some point those retirees that was gonna get their retirement for the rest of their life will end.

    Just like the Teamsters central fund, job moving out of country and not contributing into the Trust Funds

    FedEx is pushing the new Portable Pension Plan which is far out less of a retirement plan.
    Last edited by fedexnuno; 4 Weeks Ago at 11:23 AM.
    crazy, fxstc07 and ABFwife like this.

 

 

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