22 10, 2019

FedEx Marches to Its Own Beat on Pension De-risking

2019-10-22T10:33:27-07:00October 22nd, 2019|Categories: Defined Benefit Plans|Tags: |

Many big companies are looking to de-risk their pension plans by offering lump-sum payouts or cutting deals with insurance companies. Some, however, are taking a different route. FedEx, for example, recently announced plans to contribute $1 billion to its U.S. pension plans before the end of its fiscal year ending May 29, 2020. That’s $300 million more than its expected minimum required contribution. It’s not a brand-new strategy: the company has annually been contributing at least $1 billion to the [...]

16 06, 2015

FedEx Corp. Adopts Mark-to-Market Pension Accounting

2015-06-16T00:12:20-07:00June 16th, 2015|Categories: Defined Benefit Plans|Tags: , |

FedEx Corp. said today it has adopted mark-to-market pension accounting for its defined benefit pension and other post-retirement plans. This accounting change will have no effect on employees’ pension benefits or the funding requirements for any FedEx pension plans or FedEx cash flows. This accounting method will make FedEx’s operating performance easier to understand and more transparent by immediately recognizing actuarial gains and losses in the fourth quarter of the fiscal year rather than amortizing them over many years. [...]