Originally Posted by
pinseeker
How do they get around the IRS limit for earnings on DB plans? What about the IRS limit on yearly DB payout?
The way I understand the limit is when we got our first contract, 1998 the IRS yearly DB Limit was $130,000. Under the FedEx employee pension plan the max benefit available for a single life was 50% FAE. The $260,000 cap on pension earnings ensured the IRS LIMITS could not be exceeded. The IRS Limit has risen over time. The earnings Cap has not. Since the IRS Max DB 2018 is now $220,000 the FedEx $260,000 Cap would have to be raised to $440,000 in order to bump up against the IRS Cap.