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. In addition to information about the FedEx retiree health benefits for eligible pre-65 and post-65 retirees, this page contains information about public exchanges, Medicare and COBRA, which may be helpful to all retirees, regardless of eligibility. To learn more, expand each section below.
For plan options and rates, view the current enrollment guide on the overview page for your operating company.
FedEx offers retiree health benefits to eligible retirees. To be eligible for retiree health benefits, you must retire from an operating company* that offers retiree health coverage, and you must satisfy the following age and service requirements as of your date of retirement:
Note: Retiree health coverage is not available to retirees in the U.S. Virgin Islands and Guam.
Years
or older
HIRED ON OR BEFORE
DECEMBER 31, 2017
20 CONSECUTIVE
Years OF PERMANENT
CONTINUOUS SERVICE
Generally, service with a FedEx company that does not offer retiree health benefits will be counted to determine eligibility. If you do not meet the age and/or service requirements by your retirement date, but you elect to continue your medical coverage through the FedEx Corporation Group Health Plan under COBRA, your COBRA continuation period will count toward satisfying the eligibility age and service requirements for retiree health benefits. Only the period for which COBRA medical coverage premiums are paid will be counted toward the age and/or service requirements. When COBRA is used as a bridge to meet the age and/or service eligibility requirements for retiree health benefits, the FedEx Retiree Health Premium Account (RHPA) credit amount will be determined as of the date you first meet age and service eligibility requirements. Please see the COBRA section of this page for instructions about how to obtain retiree health benefits if you use COBRA continuation coverage to bridge the age and/or service requirements.
Important! Not all retirees are eligible for FedEx retiree health benefits. Employees hired after December 31, 2017, are not eligible for retiree health benefits. Also, retirees who waived coverage (for medical, dental and vision) in the FedEx Corporation Retiree Group Health Plan prior to October 1, 2015 are not eligible for retiree health benefits.
*Participating Employers in the FedEx Corporation Retiree Group Health Plan include FedEx Express (Federal Express Corporation, including team members residing in Puerto Rico); FedEx Services (FedEx Corporate Services, Inc.); FedEx Corporate (FedEx Corporation); FedEx Custom Critical, Inc.; FedEx Dataworks, Inc.; FedEx Forward Depots, Inc.; FedEx Freight Corporation; FedEx Logistics, Inc.; FedEx Trade Networks Trade Services, LLC; and FedEx Trade Networks Transport & Brokerage, Inc. NOTE: Employees of Federal Express Virgin Islands, Inc. and employees domiciled in Guam are not eligible to participate.
FedEx retiree health benefits are available to eligible retirees, their eligible spouse and eligible dependents, and are comprised of two components: The FedEx Corporation Retiree Health Reimbursement Arrangement and the FedEx Corporation Retiree Group Health Plan.
FedEx Corporation Retiree Health Reimbursement Arrangement (RHPA credit)
RHPA credit quick facts
One-time credit
Credited entirely by FedEx
Reimburses you for health care premiums and contributions
Tax-free account
Balance based on your age at the date of retirement
One-time credit for eligible spouse
For pre-65 and post-65 retirees who meet the eligibility requirements for retiree health benefits, FedEx will provide a one-time retiree health credit to a Retiree Health Premium Account (RHPA) when you retire. The account is established and credited entirely by FedEx. However, you must notify the Retiree Health Service Center to activate your RHPA and, if applicable, your spouse’s RHPA as well. You can use the RHPA to reimburse yourself for the cost of your health care premiums/contributions (including Medicare and Medicare supplement premiums/contributions), up to the amount in the account. Because it's a tax-free account, you don't pay taxes on your balance or reimbursements for eligible expenses.
The one-time RHPA credit amount will be determined based on your age on the date of your retirement. Your eligible spouse’s one-time RHPA credit amount is based on his/her age as of your retirement date. Each of you will have your own RHPA, independent of each other.
If any eligible non-spouse dependents are covered, they will not receive their own RHPA, but you and your spouse can use yours to cover their eligible premiums/contributions.
Information about your RHPA will be sent to you via postal mail approximately two weeks after your retirement date along with your enrollment guide for the Pre-65 Retiree Health Plan. Follow the instructions included in your enrollment kit to activate your RHPA. Once the RHPA has been established, you can view the available amount.
Is your spouse a current (active) FedEx employee?
If your spouse is an active FedEx employee, he/she will receive his/her own RHPA credit, based on his/her age as of your retirement date. However, they will not be able to access the RHPA until they terminate employment from all FedEx companies; and they will not receive any additional RHPA credits upon retirement under their own eligibility.
Is your spouse not covered under your FedEx health coverage?
If you’re married on the date of your retirement and your spouse is not a covered dependent under the FedEx Corporation Group Health Plan (for active employees), you’ll need to contact the FedEx Retiree Health Service Center (RHSC) after you retire to complete the spousal verification process so that an RHPA can be established for your spouse.
Refer to the chart below to see RHPA credit amounts.
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 |
*Retiree is one "individual," and retiree spouse is a separate individual.
**Only spouse may be younger than age 55.
Keep in mind that the RHPA credit:
- Is a one-time allocation, so you'll need to manage it accordingly.
- Doesn’t earn interest.
- Can’t be taken as a lump sum.
- Isn’t taxable if applied to eligible expenses.
Your RHPA can be used for health care coverage premiums, such as premiums for medical, prescription drug (pharmacy), dental, and vision plans like:
- FedEx Corporation Retiree Group Health Plan
- Medicare
- Medicare Supplement Plus
- Individual health insurance coverage obtained through private exchanges, public exchanges, or other sources (premiums for other employer health care plan coverage are only eligible if the employee premiums are paid on an after-tax basis)
- Cannot be used to pay for:
- Your premiums/contributions paid with before-tax dollars; for example, before-tax premiums paid for coverage through your spouse's group health plan.
- COBRA coverage elected following your retirement.
- Coverage administered by your state exchange or the Federal Health Insurance Marketplace if you intend to qualify for the annual federal premium tax subsidy. (Consult your tax professional; you can contact the RHSC for information about irrevocably suspending your RHPA access for a calendar year.)
FedEx Retiree Health Premium Account (RHPA) Eligible Expenses
| 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) |  |
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 |  |
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. | |
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 | |
|
| Long-term care premiums - Premiums paid on a policy for future long-term care needs | |
|
| Medicare Part B Premiums | |
|
| Medicare Part D Premiums | |
|
| 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 | |
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 | |
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 | |
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 | |
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. |
IMPORTANT: This expense list provides general expense items/categories that are eligible for reimbursement under the plan. To view a more detailed list of eligible expenses, please visit https://sig-is.org/
FedEx Corporation Retiree Group Health Plan and FedEx Corporation Retiree Health Reimbursement Arrangement. The FedEx Corporation Retiree Group Health Plan and the FedEx Corporation Retiree Health Reimbursement Arrangement (“Plans”) are governed by formal Plan documents and, in the event of any conflict between this guide 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.
If you have questions about your Health Reimbursement Arrangement call 1.888.715.1911.
As your retirement approaches, take time to explore your options thoroughly so you can make the best decision for you and your situation.
FedEx Corporation Retiree Group Health Plan (FedEx Retiree Group Health Plan)
FedEx Corporation Retiree Group Health Plan Coverage Options
MEDICAL
DENTAL
VISION
NO DEDUCTIBLE IN-NETWORK PRIMARY CARE
FREE IN-NETWORK PREVENTATIVE CARE
ELIGIBLE RETIREES AND DEPENDENTS UNDER AGE 65
HEALTH REIMBURSEMENT ACCOUNT BASED ON COVERAGE TIER YOU SELECT
For pre-65 retirees who meet the eligibility requirements for retiree health benefits, eligible pre-65 spouses and eligible dependents, the FedEx Corporation Retiree Group Health Plan provides medical, dental and vision coverage options. Coverage options are designed to provide retirees with a range of cost and benefit coverage options for you and your eligible dependents under age 65.
The Medical Health Reimbursement Account (HRA), not to be confused with the RHPA under the FedEx Corporation Retiree Health Reimbursement Arrangement, is a key feature of the FedEx Corporation Retiree Group Health Plan. It is another way FedEx helps you manage health care costs. When you enroll in a FedEx retiree medical plan option, FedEx will provide you with a Medical HRA, based on the coverage tier you elect. You will be issued an Optum Financial payment card to pay for qualified medical expenses using your HRA. The HRA cannot be used to pay for prescription drug, dental or vision charges. .
CYC Card Eligible Expenses (Deductibles and Copays)
| Anesthesia | Physical Exam |
| Chiropractic Care | Physical Therapy |
| Flu Shot | Psychiatric Care |
| Hearing Aids | Surgery |
| Hospital Room and Board | Wheelchair |
If you have questions about Optum Financial, call 1.833.298.9044 or go to myoptumfinancial.com/fedex.
If you do not use all of your Medical HRA during the year, any unused balance will roll over to the next year, provided you remain enrolled in a FedEx retiree medical plan option. Effective in 2021, a maximum balance of $1,000 will be rolled over, with earlier balances grandfathered.
Retirees in California also may be eligible for the FedEx Retiree Kaiser medical plan option, which includes an HRA.
For retirees in Hawaii, two health plan options are available through Hawaii Medical Service Association (HMSA). These plan options do not include a medical HRA.
Are you a rehired retiree?
If you are rehired by any FedEx operating company, you cannot participate in any FedEx retiree health plan benefits. Your and your spouse’s RHPA will be suspended effective the date you become active again. Any expense incurred during the RHPA suspension period will not be eligible for reimbursement. When you or your spouse decides to retire and terminate employment from all FedEx operating companies, this suspension no longer applies. However, you must notify the FedEx Retiree Health Service Center to re-activate your RHPA; it will not re-activate automatically.
What to expect
If you are under the age of 65 when you retire, and you are eligible to participate in the FedEx Corporation Retiree Group Health Plan, a retiree health enrollment packet detailing your options and costs, as well instructions on how to activate your RHPA will be mailed to your home address approximately two weeks after your retirement is processed in your operating company’s human resources information system.
If you are covered under the FedEx Corporation Group Health Plan for active employees at the time of your retirement, you will also receive a COBRA packet from BenefitConnect (the COBRA administrator for FedEx), providing the option to continue coverage of your “active” medical, dental and/or vision coverage for you and your covered dependents for up to 18 months. Refer to the COBRA section on this page to learn more. (Note: COBRA coverage is not eligible for reimbursement through the RHPA.)
Also, refer to the Medicare section for additional information that might be applicable to you when you turn age 65.
Important! You are not automatically covered under the FedEx Corporation Retiree Group Health Plan or FedEx Retiree Health Reimbursement Arrangement. To receive pre-65 retiree medical, dental and/or vision coverage for you and/or your eligible pre-65 dependents, you must call the FedEx Retiree Health Service Center at at 1.888.715.1911 by the deadline indicated in your retiree health enrollment packet to make your elections. If you do not make an election before the deadline, you will not be able to enroll in retiree health coverage for yourself or your eligible dependents until the next retiree health annual enrollment period, unless you have a qualifying event (e.g., adoption, marriage, divorce).
To activate your (and, if eligible, your spouse’s) RHPA, log on to retirement.fedex.com/enrollnow or contact the FedEx Retiree Health Service Center at 1.888.715.1911. Note: You do not have to enroll in the pre-65 medical, dental and vision plan options to activate your RHPA.
The COBRA provision allows you and/or your dependents to continue coverage through the FedEx Corporation Group Health Plan (for active employees) if certain qualifying events occur that would result in the loss of any health care benefits in which you were participating at the time of the qualifying event.
COBRA qualifying events include:
- Termination of employment (voluntary or involuntary)
- Retirement
- Death of participant (active)
Medical, dental and/or vision coverage may be continued under COBRA if coverage was in effect on the date prior to the qualifying event. Also, you are eligible to continue your participation in the Health Care Flexible Spending Account (HCFSA) under COBRA only if you have an account balance upon retirement. The HCFSA cannot be continued beyond the end of the plan year in which the qualifying event takes place.
In addition, you might be able to use COBRA medical coverage to bridge your age and/or service eligibility. If you elect to continue your medical coverage under the FedEx Corporation Group Health Plan through COBRA (you generally can continue coverage through COBRA for up to 18 months), your COBRA continuation period will count toward satisfying the eligibility age and/or service requirements for retiree health benefits.
For example, assume you are age 56 and have completed 19 years and one month of service when you retire. If you elect COBRA continuation for medical coverage under the FedEx Corporation Group Health Plan and pay COBRA premiums for 11 months, this period will be counted in determining your continuous service for retiree health benefits eligibility.
For assistance with COBRA prior to retirement, contact Choosewell Care Connect at 1.800.888.5622. Press “1” to select English, and then press “0” at each following prompt to bypass the automation and speak with a customer service representative.
What to expect
If you are covered under the FedEx Corporation Group Health Plan (for active employees) at the time of your retirement, a COBRA packet will be mailed to your home address providing the option to continue coverage of your active medical, dental and/or vision coverage for you and your covered dependents for up to 18 months (up to 36 months if due to death of active employee). When you receive the packet, you have 60 days from the date on the packet to choose COBRA continuation coverage. If you select COBRA and begin paying the required premium, your coverage will be retroactive to the day you lost your health insurance benefits due to the qualifying event.
You must contact the FedEx Retiree Health Service Center within 31 days of the date your COBRA coverage ends in order to begin your pre-65 FedEx Corporation Retiree Group Health Plan coverage and avoid any lapse of coverage.
If your period of COBRA coverage was used to bridge your age and/or service requirements for eligibility for retiree health benefits, you must contact the FedEx Retiree Health Service Center at 1.888.715.1911 in order to provide the required information to establish your RHPA.
Important! When COBRA is used as a bridge to meet the age and/or service eligibility requirements for retiree health benefits, the RHPA credit amount will be determined as of the date you first meet age and service eligibility requirements.
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 because some are private and some are public, and public exchanges can be 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.
Private exchange (via Alight Retiree Health Solutions)
The private exchange through Alight Retiree Health Solutions and its partner eHealth is accessible only to those who meet eligibility requirements for FedEx retiree health benefits. It’s a private exchange through which post-65 retirees may have access to additional health care coverage options. As an eligible retiree, you may find medical, prescription drug (pharmacy), dental and vision coverage that’s right for you through Alight Retiree Health Solutions.
In some areas, there may not be many or any additional options through Alight Retiree Health Exchange, but you will still have the option to enroll in the FedEx Corporation Retiree Group Health Plan and use your RHPA to help reimburse your premium costs.
Public exchanges
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 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 your state government’s website. Depending on the state you live in, you might also find information at healthcare.gov.
Learn more about the Federal Health Insurance Marketplace or the federal premium tax subsidy at healthcare.gov.
You may purchase health coverage through other eligible insurance plans, such as through an insurance broker, an insurance company or a spouse’s employer. However, you cannot use the RHPA to cover premiums/contributions paid with before-tax dollars.
Employees who meet retiree health age and/or service eligibility requirements and retire at or after age 65 are eligible for the RHPA under the FedEx Corporation Retiree Health Reimbursement Arrangement, but are not eligible to participate in the pre-65 retiree medical, dental and vision plan options under the FedEx Corporation Retiree Group Health Plan.
That’s because at age 65, you become eligible for Medicare. Don’t worry; you don’t have to navigate the Medicare landscape alone. Alight Retiree Health Solutions can assist you and/or your post-65 spouse in evaluating Medicare supplemental coverage and enrolling in a plan, if desired.
You must call the FedEx Retiree Health Service Center at 1.888.715.1911 by the deadline indicated in your retiree health enrollment packet to make elections for your pre-65 dependents.
What to expect
Retirees turning 65 who are eligible for the RHPA or the retiree health plan will be contacted by Alight Retiree Health Solutions for assistance with post-65 health insurance needs.
Approximately 60 days before you or your covered spouse turns age 65, Alight Retiree Health Solutions will schedule an appointment for you and/or your spouse to speak with one of their licensed Benefits Advisors for assistance with evaluating Medicare supplemental coverage and enrolling in a plan.
Alight Retiree Health Solutions will send you a Medicare guide, along with an appointment letter, notifying you of the date and time a Benefits Advisor will call you. Upon receipt, please be sure to contact Alight to confirm your appointment date and time, or reschedule your appointment. Failure to do so will result in your appointment being canceled.
A comprehensive needs assessment with a licensed Benefits Advisor will help you narrow plan choices available to you, based upon your situation and needs. Also, the Benefits Advisor can advise you on next steps and how to enroll.
FedEx partners with several administrators for our retiree health benefits. You may receive communications from them from time to time at your home mailing address or via email, depending on your communication preferences. On rare occasions, we might even contact you by phone, so please make sure you keep all of your contact information (mailing address, email address and phone numbers) current through your human resources information system.
Businessolver is the retiree health enrollment administrator for the FedEx Corporation Retiree Group Health Plan, effective January 1, 2023.
Alight Retiree Health Solutions is a private exchange in partnership with eHealth, as well as public exchanges that offer medical, prescription drug (pharmacy), dental and vision coverage and cost options to fit your needs and budget.
ConsumerMedical is a confidential health information and support resource that provides expert healthcare guidance, reliable medical information and personalized support from their team of doctors, nurses and researchers.
eHealth is Alight Retiree Health Solutions’ partner for access to pre-Medicare health plans. eHealth is considered a leading online marketplace for individual and family health insurance products.
Actives – Current FedEx employees.
Exchange – A marketplace where consumers can review/purchase individual insurance plans offered by various commercial insurance providers. Exchanges can be public or private, and vary by state. A public exchange is run by either a state or the federal government. A private exchange is run by a private company.
FedEx Corporation Group Health Plan – The formal plan name of the health care plan for eligible active FedEx employees and their eligible dependents.
FedEx Corporation Retiree Group Health Plan – The formal name of the pre-65 health care plan for eligible retirees (and their eligible dependents) of the operating companies listed below.
- FedEx Express (Federal Express Corporation, including team members residing in Puerto Rico; excluding team members residing in the U.S. Virgin Islands and Guam)
- FedEx Services (FedEx Corporate Services, Inc.)
- FedEx Corporate (FedEx Corporation)
- FedEx Custom Critical, Inc.
- FedEx Dataworks, Inc.
- FedEx Forward Depots, Inc.
- FedEx Freight Corporation
- FedEx Logistics, Inc.
- FedEx Trade Networks Trade Services, LLC
- FedEx Trade Networks Transport & Brokerage, Inc.
FedEx Corporation Retiree Health Reimbursement Arrangement – The formal plan name of the pre- and post-65 retiree health benefit for eligible retirees; it features a retiree health credit in a Retiree Health Premium Account (RHPA).
FedEx Retiree Group Health Plan – A health plan available to eligible FedEx pre-65 retirees, which offers a selection of retiree medical plan options administered by Cigna; also used as the short name for the FedEx Corporation Retiree Group Health Plan.
Health Care Flexible Spending Account (HCFSA) (under COBRA) – An account that allows you to set aside money to pay for eligible health care expenses incurred by you and/or your eligible dependents. To continue the HCFSA under COBRA after your retirement, you must be a participant in the plan at the time of your retirement.
Medical Health Reimbursement Account (HRA) (Cigna & Kaiser only) – FedEx will credit a specified dollar amount to this account for retirees and their covered, eligible dependents who are enrolled in a FedEx retiree medical plan option; the account can be used to help cover the cost of qualifying medical expenses. Credit amounts are based on coverage tier.
Retiree health credit (RHPA credit) – One-time credit provided to eligible retirees to subsidize your health care premium/contribution payments. The amount you receive is based on your age at retirement. The retiree health credit is placed into a Retiree Health Premium Account.
Retiree Health Premium Account (RHPA) – Account established for your and your eligible spouse’s one-time retiree health credit (RHPA credit).
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Q. What are the FedEx retiree health benefits?
A. FedEx retiree health benefits are available to eligible retirees and are comprised of two components:
- The FedEx Corporation Retiree Health Reimbursement Arrangement (a one-time retiree health credit in a Retiree Health Premium Account [RHPA credit]) for eligible pre- and post-65 retirees and eligible spouses, and
- The FedEx Corporation Retiree Group Health Plan for eligible pre-65 retirees and their eligible pre-65 spouse and/or other eligible pre-65 dependents.
You must meet certain requirements to be eligible for the above-referenced retiree health benefits.
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Q. What are the eligibility requirements for retiree health benefits?
A. The following requirements must be met to be eligible for retiree health benefits:
- You must be age 55 or older with at least 20 years of permanent continuous service, and you must have been hired on or before December 31, 2017.
- You must be working for one of the following operating companies at the time of retirement from FedEx:
- FedEx Express (Federal Express Corporation, including team members residing in Puerto Rico; excluding team members residing in the U.S. Virgin Islands and Guam)
- FedEx Services (FedEx Corporate Services, Inc.)
- FedEx Corporate (FedEx Corporation)
- FedEx Custom Critical, Inc.
- FedEx Dataworks, Inc.
- FedEx Forward Depots, Inc.
- FedEx Freight Corporation
- FedEx Logistics, Inc.
- FedEx Trade Networks Trade Services, LLC
- FedEx Trade Networks Transport & Brokerage, Inc.
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Q. What happens if I retire a few months shy of meeting the age and service eligibility requirements for retiree health benefits? What are my options?
A. To be eligible for retiree health benefits, you must meet the age and/or service requirements. However, if you elect to continue your medical coverage under the FedEx Corporation Group Health Plan (for actives) under COBRA (for up to 18 months), your COBRA continuation period will count toward satisfying the eligibility age and/or service requirements for retiree health benefits. Only the period for which COBRA premiums are paid will be counted toward age and/or service requirements. When COBRA is used as a bridge to meet the age and/or service eligibility requirements for retiree health benefits, the RHPA credit amount will be determined as of the date you first meet age and service eligibility requirements.
For example, assume you are age 56 and have completed 19 years and one month of continuous service when you retire. If you elect COBRA continuation for medical coverage under the FedEx Corporation Group Health Plan (for active employees) and pay COBRA premiums for 11 months, this period will be counted in determining your continuous service for retiree health benefits eligibility. If you do not meet the age and service requirements at the time of your retirement and you do not elect COBRA continuation of your medical coverage, you will not be eligible for FedEx retiree health benefits. If you fail to pay your COBRA premiums for the period of time required to be eligible for retiree health benefits, you will not receive an extension or another opportunity to bridge your eligibility.
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Q. What is a Retiree Health Premium Account (RHPA)?
A. If you meet eligibility requirements, when you retire, FedEx will provide a one-time credit in a Retiree Health Premium Account (RHPA) to help you pay for your retiree health coverage premiums/contributions. You can be reimbursed for your premiums/contributions as you choose, up to the amount credited to the account. Your retiree health credit amount will be determined based on your age when you retire. If you have an eligible spouse as of your retirement date, your eligible spouse also will receive a one-time retiree health credit in an RHPA, based on his/her age as of your retirement date. If any non-spouse dependents are covered, they will not receive their own RHPA, but your and your spouse’s RHPA can be used to cover their premiums/contributions.
Because the RHPA is a tax-free account, you don't pay taxes on your balance or reimbursements for eligible expenses.
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Q. How do I get my RHPA credit from FedEx when I retire?
A. A one-time RHPA credit is available for retirees (and eligible spouses) who meet retiree health eligibility requirements. You’ll need to log on to retirement.fedex.com/enrollnow or contact the RHSC to activate your (and, if eligible, your spouse’s) RHPA account(s).
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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 below 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.
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 *Retiree is one "individual," and retiree spouse is a separate individual.
**Only spouse may be younger than age 55.
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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 your RHPA to pay premiums/contributions for medical, prescription drug (pharmacy), dental and vision coverage on an after-tax basis. Consult with a tax professional for more information.
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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 be used toward your health care premiums/contributions. It cannot be used for other expenses, even those that are related to health care.
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Q. Will my spouse receive an RHPA credit, too?
A. Yes, if you are eligible for retiree health benefits, your eligible spouse will receive a one-time retiree health credit in a Retiree Health Premium Account, based on his/her age as of your retirement date. This means you and your spouse will each have your own individual RHPA.
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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 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 to retirement.fedex.com/enrollnow or by contacting the FedEx RHSC at 1.888.715.1911.
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Q. Does my spouse have to be enrolled in the FedEx Corporation Group Health Plan (for active employees) in order to receive the RHPA?
A. No, your spouse does not have to be enrolled in the FedEx Corporation Group Health Plan (for active employees) to be eligible for the RHPA. Your spouse’s eligibility for the RHPA is based on your retiree health eligibility, regardless of whether or not they are currently in the FedEx Corporation Group Health Plan. You must be eligible for retiree health benefits in order for your spouse to be eligible. You can activate your spouse’s RHPA at the same time you activate yours at retirement.fedex.com/enrollnow or contacting the FedEx RHSC at 1.888.715.1911.
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Q. When I reach age 65 and become eligible for Medicare, will my spouse and/or dependents be able to continue in the FedEx Corporation Retiree Group Health Plan?
A. If your eligible covered dependents are younger than age 65, they can continue coverage in the FedEx Corporation Retiree Group Health Plan when you become eligible for Medicare, unless you are a resident of Puerto Rico. For PR retirees, when you turn age 65, your eligible covered dependents cannot continue coverage under the FedEx Corporation Retiree Health Plan. Contact your local government office for options that might be available for your dependents.
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Q. Is someone available to help me with Medicare and/or Medigap coverage?
A. Expect to receive information from Social Security a few months before your 65th birthday. Follow the instructions outlined in those materials to sign up for Medicare Part A and Part B. Also, you will receive information from Alight Retiree Health Solutions about a prescheduled, personalized appointment for a licensed, professional Benefits Advisor to call you to assist with your Medicare insurance options, so you can transition from individual coverage to Medicare coverage easily. Read the appointment letter carefully, and be sure to confirm (or reschedule) your appointment by the deadline indicated in the letter.
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Q. What if I have COBRA coverage through FedEx and I choose not to enroll in coverage through the FedEx Corporation Retiree Group Health Plan at this time? Will I still receive the RHPA credit?
A. Yes, if eligible, you will receive the one-time RHPA credit. Keep in mind, you won’t be eligible RHPA yet if you’re using FedEx COBRA to bridge eligibility, but you will have access to the RHPA credit once you meet the eligibility requirements through COBRA.
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Q. What happens to the balance of my RHPA when I die?
A. If you have an eligible spouse who survives you, they will become the account holder of the balance of your RHPA. If you don’t have an eligible spouse, the remaining balance will be forfeited and won’t be paid out as part of your estate.
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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 for active employees?
A. No, if you are covered as a dependent under the FedEx Corporation Group Health Plan for active employees, the credit cannot be used until you are no longer covered as a dependent on any active (before-tax) health care plan.
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Q. What do I need to do relative to retiree health benefits when I’m ready to retire?
A. Review eligibility requirements to determine if you’re eligible for retiree health benefits. If you are younger than Age 65 when you retire, review the current Pre-65 FedEx Retiree Health Plan Enrollment Guide, found on your operating company overview page for coverage details and rates. Then, log on to retirement.fedex.com/enrollnow to activate your RHPA and enroll in medical, dental and/or vision coverage. If you are older than Age 65 when you retire, log on to retirement.fedex.com/enrollnow to activate your RHPA. Contact your human resources representative if you have questions or need assistance.
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Q. I can enroll in my spouse’s group health plan through another employer, but I want the RHPA credit. Can I still receive it if I don’t enroll in a FedEx plan?
A. Yes, if eligible, once you activate your RHPA you will receive the one-time RHPA credit. However, you can’t use the RHPA credit to cover your premiums/contributions paid with before-tax dollars through your spouse’s group health plan. You can use the RHPA credit to cover only the premiums/contributions for your coverage in your spouse’s plan if they are paid with after-tax dollars.
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Q. As an active employee, how can I get assistance with retiree health information?
A. If you have questions or need assistance, contact the FedEx Retiree Health Service Center at 1.888.715.1911. Representatives are available Monday-Friday from 7 a.m. to 7 p.m., CT.
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.