1). If a pilot contributes $1,000 to a 401K for the year, company gives a $500 match. Yes, that is it for employer match for 401K.
2). FedEx also contributes 8% of income up to IRS limit ($280,000 this year I think) into a B Fund. $280,000 * 8% = $22,400. (goes to 9% in Oct of this year or next, not sure which year)
3). Regular sick account (RSA) of 72 hours a year go into a Disability Sick Account (DSA) if not used. If DSA goes above 686 hours at the end of the year (about year 10 of not being sick...ever
), FedEx will deposit extra sick hours into retirement account at pilots hourly rate. 72 hours * $XXX.XX/hour = $XX,XXX. IF DSA payout exceeds the IRS annual limit ($56,000 under age 50 or $62,000 if 50 or older), it paid out as taxable pay.
4). Pilot can contribute $19,000 into 401K. And if IRS annual limit has not been exceeded, FedEx allows after tax contributions upto the annual IRS limit.
5). A Fund is 2% for each year of service up to max of 25 years * high 5 year average (limited to $260,000 by pilot contract). Max pay out is $130,000. Not part of IRS annual limit mentioned above.
Comparing to Delta, they contribute 16% of eligible earnings...upto the IRS limit of $280,000. (I don’t think they have cash over cap, which would put extra money into regular pay.) Delta has profit sharing as well. I think they are somewhat similar with our A Fund & b Fund if you are not “young” because FedEx allows pilot to max the IRS limit, but it is out of their pay. Time value of money may make Delta better if young enough to grow the retirement account.
FedEx Alpa is trying to sell the crew force on freezing the A Fund for a Variable Benifit retirement vehicle. Not worth discussing since it is currently being negotiated so NO ONE KNOWS what it really is yet.