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Article: FedEx moving from traditional pension plan to 401(k) company match.
- Article from:
- The Commercial Appeal (Memphis, TN)
- Article date:
- February 28, 2007
CopyrightCOPYRIGHT 2007 The Commercial Appeal. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Feb. 28--Tens of thousands of FedEx Corp. workers got word Tuesday that their pensions will be capped as the company moves into the brave new world of employee-managed retirement planning.
Beginning June 1, 2008, FedEx will stop funding its traditional pension program, providing instead a 3.5 percent match to employees' 401(k) contributions.
Any benefits already accrued under the traditional pension will be payable monthly at retirement.
For most workers, the company will also fund a cash balance account -- which FedEx calls a portable pension account -- paying 5 percent of salary each year for its newest and youngest workers and up to 8 percent ...