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YOUR FINANCIAL FUTURE
Fedex airlines retirement benefits
Your FedEx career offers a robust retirement package, including a 401k plan, a pension, and other benefits. To help you make the most of your options, we’ve compiled details about key benefits. Understanding the specifics of your retirement benefits will empower you to make informed decisions and maximize your retirement savings. Connect with us to answer questions about your options and explore the trajectory of your financial future.
WHAT YOU SHOULD KNOW ABOUT YOUR FEDEX 401k
Your FedEx 401k account can be a tremendous wealth multiplier. This account has the potential to compound your contributions and investments over the course of your career.
FedEx contributes 9% of your eligible compensation to your 401k account for you. This is known as the non-elective contribution. You also have the ability to contribute your own money to the 401k plan up to the IRS maximum.
Your 401k has several key planning features you should be aware of. First, you will have the ability to indicate if you want to contribute to the pre-tax or the Roth feature of the 401k. This is helpful when managing current and future tax planning. Next, your FedEx 401k supports after-tax contributions and Roth conversions. This is useful if your elective deferrals and the company’s contributions do not take you to the IRS maximum and you’d like to top off the account.
When it comes to portfolio construction the investment menu will offer broad options allowing you to tailor your investment strategy. You can select from target date funds, index funds or use the self directed brokerage account for a more hands-on and customized investment experience.
What you should know about your other fedex benefits
In addition to your 401k, FedEx pilots also have a pension. We’re keeping a close eye on the long-term prospects of the pension as it was on the negotiating table during the last round of contract negotiations. According to airline analyst Kit Darby of kitdarby.com, approximately 10% of your career value is derived from your active and retirement benefits. Each year, during open enrollment you’ll have the option to select other benefits such as: Medical, Dental, Life Insurance, Legal to name a few.
There are other benefits that you can enroll in at any time throughout the year. Your union benefits through the ALPA may have independent enrollment time frames. Your life is dynamic and your benefits shouldn’t be on autopilot year after year. Below we highlight several key company provided, union provided or contractually secured benefits*.
*The information presented is believed to be accurate. Some benefit options are subject to contract implementation. All benefits may be subject to change.
| Benefit | Details |
|---|---|
| 401k Administrator | Fidelity |
| Non-Elective Contribution | 9% |
| 401k Match | $1,000 |
| Profit Sharing | Yes – (Administered by Empower) |
| ESPP | Yes – (Administered by Fidelity) |
| Additional Retirement | Pension |
| Company Provided Life Insurance | $800k |
| Company Provided AD&D Insurance | $15k |
| Long-Term Disability | Contractual |
| LTD Benefit | 60% Basic Monthly Compensation* |
| Legal Benefit Plan | Available |
| Union | ALPA |
| ALPA Disability Insurance | LTD Plus Up Options Available through METLIFE |
| Voluntary Insurance | Group Policy |
| Contract Amenability | Currently Amendable |
*Basic Monthly Compensation generally the average of the 12 highest consecutive months in the last 36 months immediately preceding the disability start date. This benefit is subject to a monthly maximum.
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The percent of Fedex pilots expected to retire between 2025 - 2029
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