Retiree Health Benefits
Are you an active employee with questions about retiree health? Contact the FedEx Retiree Health Service Center (RHSC) at 1.888.715.1911. Representatives are available Monday–Friday from 7 a.m. to 7 p.m., CT.
This page provides general information about health care benefits available to eligible employees when you retire from FedEx, including information about the FedEx retiree health benefits for eligible pre-65 and post-65 retirees.
For plan options and rates, view the current enrollment guide on the overview page for your operating company.
The FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan (the Ground Retiree Plan) will close January 1, 2024, and be replaced with the FedEx Corporation Retiree Health Reimbursement Arrangement, featuring the Retiree Health Premium Account (RHPA). With the implementation of one FedEx, eligible FedEx Ground employees and now Package Handlers, and their legally married spouses, retiring on or after January 1, 2024, will receive this one-time, lump-sumcredit based upon age at retirement to cover eligible retiree healthcare premiums. Eligible FedEx Ground retirees will have the option to enroll in health insurance obtained through other sources, like a health insurance exchange, an insurance company, or an insurance broker and use RHPA funds for reimbursement of eligible premiums. FedEx retirees will also have the option to use GetCovered powered by HealthMarkets at 1-866-925-0120 or www.getcovered.com/uhc to find affordable pre-65 medical, dental and vision coverage and post-65 supplemental Medicare plans. A complete list of eligible RHPA expenses, the RHPA chart, and more information about the RHPA can be found below.
IMPORTANT for Pre-65 retirees: If you choose to waive your current 2023 coverage in the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan (Plan), you will not be eligible for the Plan’s post-65 Health Reimbursement Arrangement (HRA) benefit or the Retiree Health Premium Account (RHPA).
Effective January 1, 2024 the FedEx Ground Post-65 HRA is being replaced with the FedEx Corporation RHPA. The FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan’s Post-65 Health Reimbursement Arrangement (FXG HRA) benefit will be replaced with a one-time, lump-sum Retiree Health Premium Account (RHPA) under the FedEx Corporation Retiree Health Reimbursement Arrangement. The new RHPA will be available beginning January 1, 2024.
Starting January 1, 2024, FedEx Ground Package Handlers hired before January 1, 2018, will become eligible to earn this benefit. To remain consistent with RHPA Plan rules, FedEx Ground employees and Package Handlers hired on or after January 1, 2018, are not eligible for retiree health benefits. Other retiree health benefit eligibility criteria remains the same; at least age 55 or older at the time of retirement with 20 years of continuous permanent service from your last hire date After January 1, 2024, FedEx Ground employees, including Package Handlers, looking to retire who fall short of the continuous service or age requirements, can elect FedEx COBRA to extend active FedEx medical coverage for up to 18 months to bridge to eligibility. Eligibility for retiree health benefits is achieved when the necessary coverage period is completed. The RHPA credit amount will be determined as of the date you first meet age and service eligibility requirements. Please note that FedEx COBRA is not reimbursable from the RHPA.
More information about the RHPA
FedEx provides a one-time, lump-sum retiree health credit in a Retiree Health Premium Account (RHPA credit*) to help eligible retiree health plan participants reimburse eligible health care premiums (including Medicare supplement premiums, if age 65 or older). You can use the account until it is depleted. If you have an eligible, qualified Spouse, your Spouse will receive a separate RHPA credit.
Summary of RHPA’s key features
- It’s a one-time, lump-sum credit.
- It does not earn interest.
- It is not taxable if applied to eligible expenses.
- It cannot be taken as a lump sum or used for anything other than eligible expenses.
- Accessing the RHPA might impact eligibility for government subsidies, like the federal premium tax credit.
- Retirees can irrevocably suspend RHPA access for a calendar year, which may allow eligibility for subsidies like the federal premium tax credit.
- Consult a tax professional or contact the FedEx RHSC for information about irrevocably suspending RHPA access for a calendar year.
You can determine the amount of your RHPA by referring to the RHPA chart below. The amount you’ll receive depends on your age as of January 1, 2024. If you have an eligible Spouse, they will receive their own RHPA based on their age as of January 1, 2024. Dependent children will not receive their own RHPA, but your or your Spouse’s RHPA can be used to cover their eligible health care premiums.
FedEx Retiree Health Reimbursement Arrangement
Retiree Health Credit Amount by Age (also referred to as RHPA credit)
| Age at Retirement | One-Time Credit Amount Per Covered Individual* |
|---|---|
| 55** or younger | $39,000 |
| 56 | $37,000 |
| 57 | $35,000 |
| 58 | $33,000 |
| 59 | $30,000 |
| 60 | $27,000 |
| 61 | $25,000 |
| 62 | $22,000 |
| 63 | $20,000 |
| 64 | $18,000 |
| 65 or older | $11,000 |
Note: Retiree is one “individual,” and
retiree’s spouse is a separate individual. If you’re married to an eligible Spouse, you will both get an RHPA, independent of each other.
**Not applicable to retirees. Only the retiree’s spouse may be younger than Age 55.
If you have questions, contact the FedEx Retiree Health Service Center (RHSC) at 1.888.715.1911, Monday-Friday from 7 a.m.-7 p.m., Central time.
If this is a new term for you, an “exchange” is simply an online resource where insurance providers advertise and sell their services. There is no uniform model. Some are run by companies and others are run by a state government or the federal government. In some markets, competition among plan providers works in your favor, and there’s a potential for better value and lower rates. This gives you the option to research various coverage options and possibly select different coverage, based on your needs.
Exchange Examples and Options:
- Insurance exchange
- Insurance broker
- Insurance company
- Federal Marketplace
- State-based Marketplace
Public exchanges are accessible to all employees, regardless of eligibility for FedEx retiree health benefits.You can shop for coverage through a public exchange administered by your state or the Federal Health Insurance Marketplace, where you might qualify for the annual federal premium tax subsidy.
If you choose this option, you can’t use both the FedEx Retiree Health Premium Account (RHPA) and the federal premium tax subsidy in the same year. You must choose one or the other. If you choose to use the federal premium tax subsidy, you will still have access to your RHPA the year after you stop using your federal premium tax subsidy.
To see if a public exchange is available in your state, go to healthcare.gov. Open enrollment for 2024 coverage in Federal Health Insurance Marketplace options begins November 1, 2023 and enrollment must be complete by December 15, 2023 to ensure coverage on January 1, 2024.
Learn more about the Federal Health Insurance Marketplace or the federal premium tax subsidy athealthcare.gov.
You can purchase health care coverage from an insurance broker or insurance company. The private exchange through Alight Retiree Health Solutions (ARHS) and its partner eHealth offers post-65 retirees access to additional health care coverage options. As an eligible post-65 retiree, you may find supplemental Medicare medical, prescription drug (pharmacy), dental and vision coverage that’s right for you.
You can also contact GetCovered powered by HealthMarkets for pre-65 medical, dental, and vision coverage and post-65 supplemental Medicare plans at 1.866.925.0120 or by visiting www.getcovered.com/uhc.
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Q. Why is the pre-65 FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan closing?
A. The FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan has seen year-over-year declines in participant enrollment, indicating that more FedEx retirees are choosing to find health care coverage elsewhere. To support the changing health care landscape, the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan will close effective January 1, 2024.
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Q. Why is my benefit changing to the RHPA?
A. Earlier this year, we introduced one FedEx — an effort to consolidate FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation. To support the implementation of one FedEx, the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan will close effective January 1, 2024, and be replaced with the FedEx Corporation Retiree Health Reimbursement Arrangement, making retiree health benefits the same across operating companies offering retiree health benefits.
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Q. What is one FedEx?
A. One FedEx is an effort to consolidate FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation to streamline corporate structure to unify people and reduce redundancies in processes and policies.
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Q. What does the FedEx Ground retiree health plan closing mean to me?
A. FedEx retirees will need to find health care coverage elsewhere. Eligible retirees will have the option to enroll in medical, dental and vision coverage outside of FedEx through other sources like a health insurance exchange, an insurance company, or an insurance broker and use RHPA funds for reimbursement of eligible premiums.FedEx retireeswill also have the option to use GetCovered powered by HealthMarkets at 1-866-925-0120 or www.getcovered.com/uhc to find affordable pre-65 medical, dental and vision coverage and post-65 Medicare supplemental plans.
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Q. What is a health insurance exchange?
A. A health insurance exchange is a central platform where individuals and families can shop for and enroll in health insurance. There is a federal Health Insurance Marketplace at healthcare.gov and some states maintain their own exchanges like Covered California and Get Covered New Jersey.
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Q. What is the FedEx Ground Retiree health benefit starting in 2024?
A. The FedEx Ground Package System, Inc. Retiree Health Plan will close effective January 1, 2024. Eligible FedEx Ground employees and their legally married spouses retiring on or after January 1, 2024, will receive a one-time Retiree Health Premium Account (RHPA) credit based upon their age at retirement to cover eligible retiree healthcare premiums.
Age at Retirement One-Time Credit Amount Per Covered Individual 55* or younger $39,000 56 $37,000 57 $35,000 58 $33,000 59 $30,000 60 $27,000 61 $25,000 62 $22,000 63 $20,000 64 $18,000 65 or older $11,000 Note: Retiree is one “individual,” and retiree’s spouse is a separate individual. If you’re married to an eligible Spouse, you will both get an RHPA, independent of each other.
*Not applicable to retirees. Only the retiree’s spouse may be younger than Age 55. As part of this change, the post-65 HRA offered to eligible FedEx Ground retirees and their spouses will be replaced with a one-time, lump-sum $11,000 RHPA credit.
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Q.What is the RHPA?
A. The RHPA is a one-time, lump-sum credit into a notional account based upon your age on your retirement date.
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Q. How is age calculated for the RHPA credit?
A. If you meet the retiree health eligibility requirements prior to retirement, the RHPA credit is based on your age on your retirement date.
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Q. How much is the RHPA credit?
A. The amount of the RHPA credit is based on your age on your retirement date. Refer to the chart to see RHPA credit amounts listed by Age at Retirement. After you activate your RHPA account, you will have access to information online about your newly established RHPA (or you can have it emailed or mailed to you), including instructions on how to access and manage your account.
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Q. How can my RHPA dollars be spent?
A. RHPA dollars can only be spent on after-tax health premium reimbursements (excluding COBRA coverage).
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Q. Can I use my RHPA to pay premiums other than medical and prescription drug coverage premiums – like dental and vision coverage premiums, for example?
A. Yes, you can use the RHPA to pay for premiums for medical, dental, vision (on an after-tax basis) and prescription drugs (pharmacy).
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Q. Can I use my RHPA to pay for health care expenses other than health care premiums/contributions?
A. No, the RHPA is intended to cover some or all of your health care premiums and contributions. It cannot be used for other expenses, even those related to health care. You can view the list of eligible expenses on your operating company’s Retiree Health Overview page at retirement.fedex.com.
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Q. As a FedEx Ground team member, how do I qualify for the RHPA benefit?
A. To receive the RHPA benefit, FedEx Ground employees, including Package Handlers, must satisfy the following eligibility requirements: hired before Jan. 1, 2018, and reach at least age 55 with at least 20 years of permanent continuous service on their retirement date. Beginning January 1, 2024, FedEx Ground employees who are short of the age and service credits may be able to bridge to eligibility by electing COBRA medical plan coverage under the FedEx Corporation Group Health Plan for active employees; contact the COBRA Service Center 1.877.292.6272 (toll-free).
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Q. Is my spouse eligible for an RHPA?
A. If you are legally married on your retirement date and eligible for an RHPA, your spouse will also be eligible for one based on his/her age on your retirement date.
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Q. I am retiring, and my spouse is also a FedEx employee. When will my spouse become eligible for the RHPA?
A. Eligible FedEx employees only receive one RHPA. RHPAs are established based on the first eligible employee to retire. If you are eligible for an RHPA and retire first, your spouse will be set-up with their RHPA at the time of your retirement based upon their age as of your retirement date. Their account will not be active until they separate from the company. Upon retirement, you’ll need to log on toretirement.fedex.com/enrollnowor contact the FedEx Retiree Health Service Center to activate your and your spouse’s RHPA.
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Q. If my spouse and I work at FedEx and I retire, can I use the RHPA to be reimbursed for the premium my spouse pays into the FedEx Corporation Group Health Plan foractiveemployees?
A. No, if you are covered as a dependent under the FedEx Corporation Group Health Plan foractiveemployees, the credit cannot be used until you are no longer covered as a dependent onanyactive (before-tax) health care plan. IMPORTANT for FedEx Ground employees under age 65 retiring in 2023: If you choose not to enroll in the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan (Plan) for the remainder of 2023, you will not be eligible for the Retiree Health Premium Account (RHPA) in 2024.
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Q. Is the RHPA benefit taxable?
A. The RHPA is not intended to be subject to income tax. You generally are not subject to taxes on your balance or reimbursements of eligible expenses if you participate in the plan subject to its terms. You can view the list of eligible expenses on the Retiree Health Overview page at retirement.fedex.com.
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Q. When will my RHPA expire?
RHPAs do not have an expiration date.
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Q. What happens once my initial RHPA funds are exhausted?
A. RHPA funds are a one-time allocation. Once the funds in the credit have been exhausted, no additional funds are allocated.
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Q. What happens to any remaining RHPA balance in the event of my death?
A. Once the retiree/retiree spouse is deceased, any remaining RHPA funds may be used by the surviving spouse for eligible expenses.
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Q. If I retire at or after age 65, can I still take advantage of the RHPA?
A. If you retire on or after January 1, 2024, and are at or after age 65 and meet the service requirements for FedEx retiree health benefits, you will receive an RHPA credit in the amount of $11,000. RHPA credits can be used for any health premiums/contributions paid on an after-tax basis, including Medicare and Medigap plans. Keep in mind, you’ll need to activate your RHPA by logging on toretirement.fedex.com/enrollnowor contacting the FedEx RHSC at1.888.715.1911.
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Q. When I retire, will I be able to enroll in COBRA coverage?
A. After January 1, 2024, FedEx Ground employees, including Package Handlers, who fall short of the continuous service or age requirements may enroll in COBRA under the FedEx Corporation Group Health Plan to extend active FedEx medical coverage for up to 18 months and bridge to eligibility. You become eligible for retiree health benefits when you complete the necessary coverage period. Please note that COBRA under the FedEx Corporation Group Health Plan is not reimbursable by the RHPA.
IMPORTANT: If you retire in 2023 and choose enroll in COBRA instead of enrolling in the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan (Plan), you will not be eligible for the Plan’s post-65 Health Reimbursement Arrangement (HRA) benefit in 2023 or the Retiree Health Premium Account (RHPA) in 2024.
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Q. Can I pay for FedEx Group Health Plan COBRA premiums with my RHPA funds?
A. No, RHPA funds cannot be used to pay for COBRA coverage under the FedEx Group Health Plan. For more on RHPA eligible expenses, visit the Retiree Health Overview Page for your operating company.
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Q. Once I retire, will I have a gap in health coverage before I sign up for Retiree Health?
A. No, if you enroll in the FedEx Retiree Health Plan before December 31, 2023, and pay your first month’s premium, you will be covered, retroactive to your first day of retirement and can participate until December 31, 2023. The FedEx Retiree Health Plan will not be an option for coverage after December 31, 2023.
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Q. When I become eligible for Medicare, will my spouse and children be able to remain in the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan?
A. If your eligible covered dependents are younger than age 65, they can continue coverage in the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan until December 31, 2023, or when they become eligible for Medicare should that happen first. Please note: FedEx will close the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan effective January 1, 2024.
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Q. Who can I call with questions?
A. If you have questions or need assistance, contact the FedEx Retiree Health Service Center (RHSC) at 1.888.715.1911. Representatives are available Monday-Friday from 7 a.m. to 7 p.m., CT.
This communication is applicable to FedEx Ground Package System, Inc. employees.
*The FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan and FedEx Corporation Retiree Health Reimbursement Arrangement (Plans) are governed by formal Plan documents and, in the event of any conflict between this communication and the Plan documents, the formal Plan documents will control. This communication does not alter any terms of the Plans or related agreements. FedEx reserves the right to amend or terminate any of its employee benefit plans, in whole or in part, at any time and for any reason.
Retiree Health Premium Account (RHPA)
Eligible Expenses for Reimbursement
| Expense | Covered? | More Details |
|---|---|---|
| Active FedEx COBRA premiums - Premiums for continuation of group medical, dental, or vision coverage under the FedEx Corporation Group Health Plan (for active employees) |
NO |
Premiums for COBRA continuation coverage under the FedEx Corporation Group Health Plan (for active employees) is not reimbursable from the RHPA (i.e., employee retires and extends active coverage through COBRA for 18 months or less). |
| Retiree FedEx COBRA premiums - Premiums for continuation of retiree group medical, dental, or vision coverage under the FedEx Corporation Retiree Group Health Plan |
YES |
Premiums for COBRA continuation coverage under the FedEx Corporation Retiree Group Health Plan is reimbursable from the RHPA (e.g., upon the occurrence of a qualifying event, such as divorce, resulting in the spouse losing eligibility for the FedEx Retiree Health Plan; the spouse can choose to extend FedEx Retiree Health Plan coverage under COBRA). |
| Non-FedEx COBRA premiums – Premiums for continuation of coverage under a plan offered by someone other than FedEx, such as the non-FedEx employer of a spouse. |
YES |
Premiums for COBRA continuation coverage under a group health plan sponsored by an employer other than FedEx, such as a plan sponsored by the non-FedEx employer of a spouse, is reimbursable from the RHPA. |
| IRMAA and late enrollment penalties |
YES |
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| Long-term care premiums - Premiums paid on a policy for future long-term care needs |
NO |
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| Medicare Part B Premiums |
YES |
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| Medicare Part D Premiums |
YES |
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| Premiums for dental insurance - Premiums paid on an after-tax basis for any type of dental insurance coverage, including premiums for private insurance not provided by an employer |
YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the dental premium expense. Handwritten or verbal confirmation won't be accepted. |
| Premiums for medical insurance - Premiums paid on an after-tax basis for any type of medical insurance coverage, including premiums for private insurance not provided by an employer and Medicare Part A, C, F, G, K, L, M and N |
YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the medical premium expense. Handwritten or verbal confirmation won't be accepted. |
| Premiums for vision insurance - Premiums paid on an after-tax basis for any type of vision insurance coverage, including premiums for private insurance not provided by an employer |
YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the vision premium expense. Handwritten or verbal confirmation won't be accepted. |
| Premiums for prescription drug insurance - Premiums paid on an after-tax basis for any type of prescription drug coverage, including premiums for private insurance not provided by an employer |
YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the prescription premium expense. Handwritten or verbal confirmation won't be accepted. |
Legal Disclaimer: Each benefit described here is based on a formal plan document or contract. While this information is intended to be accurate, the benefits discussed here are subject to the detailed provisions of the applicable plan documents. This web page is not a summary plan description or part of a summary plan description. The details of the benefits can be found in the applicable plan documents and/or the applicable summary plan description. If there is a conflict between this communication and the terms of the applicable plan document, the terms of the plan document will control. FedEx reserves the right to amend or terminate any benefit plan at any time and for any reason.