Originally Posted by
kwri10s
Go back and look at your retirement summary from FDX that you got last fall. The company had already funded for what they forcast would cost for the increased A fund. They were 4 Billion over funded for the current retirement obligation, since we did not increase the retirement. It will be interesting to see where that 4 B moves to now that it is not needed to fund retirements. Maybe it will counter balance the 4.8 Billion cash purchase price they agreed to pay for TNT.
The funding for the current employees was never the issue. IMHO the issue was the funding for the 1000 new hires with a projected retirement beyond 2040. Perhaps there was a reason hiring was delayed and the company was willing to outsource until after the contract was settled.