FDX R&I Misc. Q&A
 

The other day I had a couple of misc. R&I questions that I recently got answers to. I thought I'd share them in case you had similar ones.
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1) Hi. I saw a FedEx letter to employees in one of our ramps stating that their 401k matching funds will change from $500 per year to 3.5% starting 1 Jan 2008. Will the FedEx pilots get the same matching 401k benefit or are we separate concerning this benefit and our contract? I didn't see anything in the contract or PBB (pilot's benefit book) that said matching was fixed at $500, but "currently $500."

2) Under our new agreement, do we still have a 3% per year reduction for early retirement (currently before 60)?

3) When will the new PBB be published?

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Answers:
1) The FedEx letter pertaining to the 3.5% 401(k) match is only applicable to non-pilots. Recently, FedEx ceased future accruals in the FedEx Pension Plan for all non-pilot employees. The increased 401(k) match, as well as annual contributions to a Cash Balance Plan, are being provided to non-pilots in lieu of future accruals to the Pension Plan. Although the annual $500 401(k) match will continue to apply to pilots, the new Agreement provides some pilots with increased accruals in the Pension Plan (see pages 28-4, 5 & 6 of the Agreement). In addition, the monthly Company contribution to the Pilots’ Money Purchase Pension Plan will increase from 6% to 7% of pay, effective 10/30/07.

2) The 3% annual (.0025 per month) reduction for retirements commencing prior to age 60 has not changed. This reduction applies to pilots and non-pilots.

3) Last week, the R&I Committee provided its comments/recommended changes to FedEx regarding the Pilot Benefit Book. We hope to meet with FedEx within the next few weeks to discuss these changes. Since production and distribution generally take anywhere from 4 to 6 weeks, you should most likely receive a PBB by the end of August or mid-September.

Benefits Specialist
ALPA FDX MEC