FedEx pension buyout history
FedEx transferred approximately $6 billion of pension obligations covering about 41,000 retirees to MetLife in 2018. What the deal means for FedEx pensioners.
Timeline
2018
MetLife entered a risk transfer agreement with FedEx covering approximately $6 billion of pension obligations for around 41,000 retirees and beneficiaries, at the time reported as the largest U.S. pension risk transfer by premium in about five years.
What this means for you
FedEx retirees covered by the MetLife contract receive their same benefit from MetLife's group annuity operation. As in every transfer, the PBGC no longer insures the transferred benefits; state guaranty associations do. Our risk transfer guide walks through the change of backstop in detail.
If you are a participant and receive a new offer letter, the analysis is the same as for any buyout: request the calculation worksheet, run the numbers in our calculator, and work through the 12 questions before the deadline. Declining always leaves your benefit in place.
Sources
Deciding on a FedEx pension offer?
Run the exact numbers from your offer letter, then get an independent second opinion before the window closes.