FedEx to modernize retirement plans in line with regulatory, demographic shifts |
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Tue, 27 Feb 2007 19:41
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LONDON (AFX) - FedEx Corporation announced new measures to modernize its retirement plans for most employees, effective next year, in light of regulatory changes and demographic shifts.Under the new program, most eligible employees who participate in a pension plan will begin accruing future benefits under a cash balance formula FedEx calls the Portable Pension Account.Benefits already accrued under a traditional 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, which has 275,000 employees and contractors, will continue to offer retirement benefits funded entirely by the company and will also enhance its 401(k) plans.The company said it 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 rules.newsdesk@afxnews.comicCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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