Retiree Health Benefits

To be eligible for the FedEx Corporation Retiree Health Reimbursement Arrangement (also referred to as the RHPA), you must retire from an eligible operating company* that offers it, and you must satisfy the following age and service requirements as of your date of retirement:

Note: Retirees in the U.S. Virgin Islands and Guam are ineligible.

Generally, service with a FedEx company that does not offer the RHPA 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 active 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.

Important! The following are ineligible for the RHPA:

• Employees hired on or after January 1, 2018
• Retirees who waived coverage (for medical, dental and vision) in the FedEx Corporation Retiree Group Health Plan prior to October 1, 2015.

*Participating Employers in the FedEx Corporation Retiree Health Reimbursement Arrangement (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 Ground Package System, Inc (including Package Handlers); 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)

For retirees who meet the eligibility requirements, when you retire, FedEx will provide a one-time retiree health credit to a Retiree Health Premium Account (RHPA) under the FedEx Corporation Retiree Health Reimbursement Arrangement for you and your eligible Spouse. The account is credited entirely by FedEx. However, you must notify the Retiree Health Service Center within one (1) year of your retirement to activate your (and, if applicable, your spouse’s) RHPA. Failure to activate your RHPA within one (1) year of your retirement date will result in the permanent forfeiture of your RHPA. You can use the RHPA to reimburse yourself for the cost of your health care premiums (including Medicare and Medicare supplement premiums), up to the amount in the account. Once your account balance reaches $50, you will have one year to use your remaining funds before your account balance goes to $0. 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.

Information about your RHPA will be sent to you approximately two weeks after your retirement date Follow the instructions included in the letter to activate your RHPA. Once your RHPA has been activated, you can view and manage your account online. Meanwhile, you can refer to the RHPA chart included in this section to see RHPA amounts by age.

 

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 eligible spouse.

Refer to the chart below to see RHPA credit amounts.

*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 payment
• 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:

• Medicare
• Medicare Supplement Plus
• Individual health insurance coverage obtained through health insurance 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).
• The RHPA cannot be used to pay for:
  • Your premiums paid with pre-tax dollars; for example, before-tax premiums paid for coverage through your spouse's group health plan that were reduced from your spouse’s income and not subject to income tax.
  • Active FedEx COBRA coverage elected following your retirement.

 

View the RHPA expense list here.

 

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/

The FedEx Corporation Retiree Health Reimbursement Arrangement (“Plan”) is governed by a formal Plan document and, in the event of any conflict between this guide and the Plan document, the formal Plan document will control. This communication does not alter any terms of the Plan 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 retiree health and/or the RHPA call the FedEx Retiree Health Service Center at 1.888.715.1911 Monday−Friday from 7 a.m.−7 p.m., CT.

As your retirement approaches, take time to explore your options thoroughly so you can make the best decision for you and your situation.

 

Are you a rehired retiree?

Active employees cannot participate in the RHPA. If you are rehired by any FedEx operating company, 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 can be lifted. However, you must notify the FedEx Retiree Health Service Center to re-activate your RHPA; it will not re-activate automatically.

 

What to expect

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 Monday−Friday from 7 a.m.−7 p.m., CT.

If you are covered under the FedEx Corporation Group Health Plan for active employees at the time of your retirement, you will 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. (Note: COBRA coverage is not eligible for reimbursement through the RHPA.)

COBRA 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:

1. Termination of employment (voluntary or involuntary)
2. Retirement
3. 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.

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 the RHPA.

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.

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.

For assistance with COBRA prior to retirement, contact the COBRA Service Center at 1-877-292-6272 Monday-Friday from 8 a.m.-6 p.m., CT.

 

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.

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 to provide the required information to activate your RHPA. Representatives are available Monday−Friday from 7 a.m.−7 p.m., CT.

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.

FedEx retirees residing in Puerto Rico will need to secure medical, dental and vision coverage outside of FedEx. Please check with your territory's government offices to learn more about Medicaid, CHIP, and other healthcare options. Those enrolled in Triple-S can continue directly with Triple-S upon retirement.

For more information about Triple-S, log on to https://salud.grupotriples.com/en/health-insurance-plans/planes-triple-s-directo/request-information .

Employees who retire at or after age 65 are eligible for Medicare. Go to www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227).To request the Medicare part B form or other related government forms to verify health coverage, email benefits.forms@fedex.com. You can choose to have your requested form emailed securely or sent via US Mail.

FedEx partners with third-party administrator(s) for our retiree health benefit/RHPA. Businessolver is the administrator for the FedEx Corporation Retiree Health Reimbursement Arrangement (RHPA). 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 your contact information (mailing address, email address and phone numbers) current through your human resources information system. It’s also a good idea to confirm and update your contact information with your benefit administrators when you retire.

Actives – Current FedEx employees.

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 Health Reimbursement Arrangement – The formal plan name of the retiree health benefit for eligible retirees; it features a one-time, lump-sum retiree health credit in a Retiree Health Premium Account (RHPA).

Retiree health credit or RHPA credit – One-time, lump-sum credit provided to eligible retirees to subsidize health care premium/contribution payments. The credit amount is based on your age on your retirement date. The retiree health credit is placed into a Retiree Health Premium Account (RHPA).

Retiree Health Premium Account (RHPA) – Account established for you and your eligible spouse’s one-time retiree health credit (RHPA credit).

1. Q. Why is the FedEx Corporation Retiree Group Health Plan closing?

   A. The FedEx Corporation Retiree Group Health Plan has seen year-over-year declines in participant enrollment, indicating that more FedEx retirees are choosing to find health care coverage elsewhere.

2. Q. What does the FedEx Corporation Retiree Group Health Plan closing mean to me?

   A. Beginning January 1, 2024, pre-65 FedEx retirees will need to secure medical, dental and vision coverage outside of FedEx through other sources like a health insurance exchange, an insurance company, or an insurance broker.

3. Q. What is the FedEx Retiree health benefit starting in 2024?

   A. The retiree health benefit will be the FedEx Corporation Retiree Health Reimbursement Arrangement,* featuring the Retiree Health Premium Account (RHPA). Keep in mind, to qualify for this retiree health benefit you must meet certain eligibility requirements.

4. Q. What is the Retiree Health Premium Account (RHPA)?

   A. The RHPA is a one-time, lump-sum credit into a notional account based upon your age on your retirement date. To learn more about the RHPA, visit the Retiree Health Overview page at retirement.fedex.com.

5. Q. How do I qualify for the Retiree Health Premium Account (RHPA) credit?

   A. To receive the RHPA benefit, FedEx team members must meet 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 from a participating operating company.

6. Q. How are the RHPA amounts determined?

   A. Your RHPA amount is based on your age on your retirement date. (Refer to the RHPA chart below.)

   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.

   Dates and figures are not rounded. For example, if you retire at age 62 on May 31, 2024, and you turn Age 63 on June 3, 2024, you will receive an RHPA amount for retirees who are Age 62 ($22,000), since that was your actual age on your retirement date.

7. Q. How can you use your RHPA credit?

   A. The RHPA credit can be used to reimburse for only healthcare premiums and contributions — such as medical (including Medicare and Medicare supplement premiums), prescription drug, vision, and dental plans — up to the amount in the account. It can also be used to reimburse yourself for healthcare premiums and contributions for plans obtained through a health insurance exchange, an insurance company, or an insurance broker and other eligible insurance plans. If there are any credits remaining in the RHPA once you begin receiving Medicare, you can continue to use the RHPA to reimburse eligible Medicare Premiums. Because it's a tax-free account, you don't pay taxes on your balance or reimbursements. For more on RHPA eligible expenses, visit retirement.fedex.com.

8. Q. Is my spouse eligible for an RHPA?

   A. If you are legally married on your retirement date and you are eligible for an RHPA, your spouse will also be eligible for an RHPA based on his/her age on your retirement date.

9. 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 to retirement.fedex.com/enrollnow or contact the FedEx Retiree Health Service Center to activate your and your spouse’s RHPA.

10. 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.

11. Q. When will my RHPA expire?

    A. RHPAs do not have an expiration date.

12. 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.

13. Q. When I retire, will I be able to enroll in COBRA coverage?

    A. COBRA is an option for all FedEx Corporation Group Health Plan medical plan option participants at the time FedEx employment ends. If you fall short of the continuous service or age eligibility requirements, COBRA can extend your medical coverage under the FedEx Corporation Group Health Plan for active employees for up to 18 months. Please note that COBRA continuation coverage under the FedEx Corporation Group Health Plan is not reimbursable by the RHPA. For more information on COBRA, call the COBRA Service Center (1-877-292-6272).

14. Q. When I become eligible for Medicare, will my spouse and children be able to remain 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 until December 31, 2023 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. Please note: FedEx will close the FedEx Corporation Retiree Group Health Plan effective January 1, 2024.

15. 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.

16. Q. What do I need to do relative to retiree health benefits when I’m ready to retire before December 31, 2023?

    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.

    Please note: FedEx will close the FedEx Corporation Retiree Group Health Plan effective January 1, 2024.

17. Q. As a retiree residing in Puerto Rico, where can I find healthcare coverage?

    A. Beginning January 1, 2024, pre-65 FedEx retirees residing in Puerto Rico will need to secure medical, dental, and vision coverage outside of FedEx through other sources. Please check with your territory’s government offices to learn about Medicaid, CHIP, and other healthcare options. Those enrolled in Triple S can continue directly with Triple S upon retirement and use this link to select an individual policy.

18. 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.
    
    

    *The FedEx Corporation Retiree Group Health 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.