DLax85

Much talk about our current A fund being too expensive and the risks of future default.

Let's take a look back at the numbers published by Fedex in the "Annual Funding Notice for Fedex Corp Employee's Pension Plan."

To keep it simple, let's cut to the chase and focus on the "Funding Target Attainment Percentage" (FTAP)

Federal Law requires the Plan Administrator to tell us how well the plan is funded using FTAP.

FTAP = Net Plan Assets / Plan Liabilities (expressed as a percentage)

In general, the higher the percentage, the better funded the plan.

All percentages as of June 1, 20XX

2008 - 83.19%

2009 - 90.38%

2010 - 80.00%

2011 - 82.72%

2012 - 99.09%

2013 - 95.16%

2014 - 101.22%

2015 - 105.35%

2016 - 100.63%

2017 - Not Yet Published


Note: Prior to 2008, a slightly different accounting metric was utilized and reported - the Funded Current Liability Percentage (FCLP)

2006 - 73.63%

2007 - 83.32%


Trends since 2009:

Regulated Age Change = Pilots retiring later + longevity constant = lower # of payments in retirement

High Stock Market gains.

(Note: The decline of 20% by mid-2008 was in tandem with other stock markets across the globe. On September 29, 2008, the DJIA had a record-breaking drop of 777.68 with a close at 10,365.45.

The DJIA hit a market low of 6,443.27 on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high)