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Retiring from FedEx

Retiring from FedEx

Prepare for your retirement

Retirement means different things to different people. There are just as many visions for it as there are individuals on the planet. A mortgage-free house. Travel. Working part-time versus full-time. Finally, more time to volunteer and give back. The ability and the hours to spoil your grandchildren.

You can see your retirement in the distance. What should you do now?

Of course, you’ve been planning, saving, and investing all along to get to this point. You are encouraged to consult with a financial planner and/or your tax advisor. This is the last leg of the journey. As you take the next few steps, there are a few things you need to know.

Who is considered a FedEx retiree?

In order to retire from FedEx, you need to meet the following requirements:

Team member is at least age 55 on the retirement termination date.

Team member has at least five years of permanent continuous service at FedEx.

Team member must be eligible for rehire.

FedEx retirees are eligible for a retiree badge and retiree shipping discounts. Eligibility for retirement and retiree health plan benefits are separately determined as discussed in the relevant sections of retirement.fedex.com.

The Path to Your Retirement

The last 18 months before your retirement can be exciting. You are fast approaching the last major milestone in your career and looking forward to the freedom to spend more time on the things that matter most, such as travel, friends, family and new hobbies. But before you can enjoy your retirement, you need to make sure you are fully prepared for what comes next. The Path to Your Retirement guide* can give you an in-depth look.

Approximately 12 to 18 months before retirement

Starting a year-and-a-half before your retirement, you want to take a holistic look at your finances to see where you stand. If you are concerned that there is a gap, you may want to contact a financial advisor to review your financial situation and make suggestions so that you can reach your retirement goal on time.

  • Review total projected income
  • Estimate healthcare costs
  • Review income sources for spouse/beneficiaries
  • Review beneficiaries
  • Check your 401(k) investments
  • Project your pension income (if applicable)
  • View your estimated Social Security benefits
  • Make 401(k) catch-up contributions
  • Plan for financial emergencies

Approximately 9 to 12 months before retirement

As you approach your last year of working, it’s also a great opportunity to make a plan for what will happen to your assets upon your death, as well as if you become incapacitated. It may not seem like a pressing issue yet, but taking this important step can provide peace of mind going into your retirement.

  • Consider insurance coverage options
  • Get familiar with COBRA**
  • Review estate planning
  • Plan for large expenses

Approximately 6 to 9 months before retirement

If you haven’t already taken advantage of retirement education resources, this is the perfect time to review courses provided by FedEx and Vanguard. If you are approaching age 65, you should also start familiarizing yourself with Medicare and Medicare supplemental plans by visiting medicare.gov.

  • Take advantage of preretirement education
  • Review Medicare information
  • Determine if you’ll meet eligibility requirements for the FedEx retiree health benefit/RHPA, so you can plan accordingly

Approximately 3 to 6 months before retirement

In your last six months working for FedEx, you want to do a final review of your primary sources of retirement savings and start reviewing your distribution options.

  • Select your retirement date
  • Apply for Social Security benefits, if applicable
  • Estimate pension benefits (if applicable)
  • Consider your 401(k) plan distribution options

Approximately 1 to 3 months before retirement

This is the final push. It’s time to do one last review of your benefits and decide which eligible benefits you may want to continue into retirement.

  • Decide whether you want to continue your FedEx Group Long-Term Care Insurance, Group Legal Plan or MetPay Program***
  • Begin looking into pre-65 medical, dental, and vision plans, or if you are nearing age 65, Medicare and Medicare supplemental plans
  • Verify your postal mailing address

Less than 30 days before retirement

By now you should have made all the necessary preparations for life after retirement. The only thing left to do is to complete the formal process for retirement with FedEx.

  • Notify your manager in writing of your intent to retire****
  • Submit required forms (keep copies)
  • Sign-up for the appropriate healthcare coverage

After retirement

You made it! Now that you have retired from FedEx, there are a few more things you can do to make the most of your retirement.

  • Activate your Retiree Health Premium Account (RHPA)
  • Consider distribution options for 401(k)
  • Join the FedEx Retiree Club
  • Take advantage of national merchant discounts or those in your community which may be available to persons age 55 or older

Retiree Badges

To qualify for a retiree badge, you must meet the following criteria:

  • Must have voluntarily resigned with a rehired status of yes; and retired at 55 or after with at least 5 years of permanent continuous service; OR resigned prior to reaching age 55 with 20 or more years of permanent continuous service.
  • In order for a retiree badge to be processed:
    1. Your manager must request a retiree ID Badge via the Purple ID homepage (keyword: purpleid)
    2. Your manager must enter the retiree information in Workday to ensure the status is updated to Retired.
    3. Your manager must return current badge to Corporate Identification Systems via overnight letter.
  • Your retiree badge will be shipped via FedEx 2-day delivery service to the address listed on the retiree badge request form. PO Box addresses cannot be used.

*The Path to Your Retirement guides are available for the following operating companies: FedEx Express (Federal Express Corporation, including 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 Forward Depots, Inc.; FedEx Freight Corporation; FedEx Freight, Inc.; FedEx Ground (FedEx Ground Package System, Inc.); FedEx Logistics, Inc.; FedEx Office and Print Services, Inc.; FedEx Trade Networks Trade Services, LLC; and FedEx Trade Networks Transport & Brokerage, Inc..

**To learn more about COBRA, contact the COBRA Service Center at 1.877.292.6272 (toll-free). 

***These benefits are offered only to active employees. If the employee has the coverage while active, they may be able to continue it with direct pay to the carrier. For more on FedEx benefits assistance and questions, including any operating company-specific benefits, contact the Choose Well Care Connect team 1.833.FDX.Well (toll-free).

****Retiring employees are not required to notify management at the same time they request a retirement kit..

What do I need to do to start my retirement benefits?

Other considerations

Here’s additional information to consider before you complete the retirement process.

Updates to your contact information

While you're a FedEx employee, you can make changes to your postal mailing address, phone numbers and other contact information through your HR system.

To make changes after you retire, you must use vanguard.com/retirementplans for your 401(k) or digital.alight.com/fedex for your pension plan. Return to these same sites whenever your personal contact information changes so that you can stay in touch and continue to receive FedEx 401(k) and pension plan benefit updates.

Retirement benefits offered by FedEx*

*Each retirement benefit has its own eligibility requirements, so it’s possible for you to be eligible for one benefit and not be eligible for another.

  • Review the Your Retirement Benefits book for your operating company to check your eligibility for pension and 401(k).
  • Check your eligibility for retiree medical benefits in the Your Employee Benefits book. Log in to choosewell.fedex.com. Under Tools and Resources, select the icon for Legal Notices & SPDs. Then, click 2018 Summary Plan Description, which is the Your Employee Benefits (YEB) book.
  • Eligibility for retiree discounts and privileges is outlined alongside the descriptions of the benefits below.

Pension

If you are eligible for a FedEx pension plan, you can use the project your pension income tool to model various retirement scenarios, using different dates, etc. You can also save up to 12 projections and perform side-by-side comparisons of up to three projections at a time.

401(k)

When you terminate employment with all FedEx companies, but no earlier than 30 days following your termination or retirement date, you have many options for distributions from the plan.

Retiree shipping discounts

You may be eligible for a Retiree Reduced-Rate Shipping account. To be eligible for this benefit, at the time of leaving FedEx, you must be at least age 55, have at least five years of permanent continuous service, have voluntarily resigned, and have a rehire status of yes or conditional. Spouses and dependent children of eligible employees are also eligible for a Retiree Reduced-Rate Shipping account. If a FedEx retiree dies, the family members of the deceased are no longer eligible for the reduced-rate discount.

To apply, you must complete the FedEx Reduced-Rate Shipping Privilege Retiree Account Number Request Form. Mail or fax the completed request form after your retirement date has been entered in the FedEx Human Resources Information System. You can also email the form to: EmployeeDiscountShipping@corp.ds.fedex.com.

Retiree health benefit/RHPA

Managing your healthcare costs in retirement can be a challenge. That’s why it’s important to understand what benefit is available to you. If you are eligible, you can review the FedEx retiree health benefit/RHPA on the FedEx Retirement Hub overview page for your operating company.

Whether or not you are eligible for the FedEx retiree health benefit/RHPA, you will still be able to take advantage of COBRA, healthcare exchanges, other insurance providers, and Medicare (if eligible).

The COBRA provision allows you and/or your dependents to continue coverage through the FedEx Corporation Group Health Plan, FedEx Custom Critical, Inc. Medical, Dental and Vision Care Plan, or FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan (for active employees) if certain qualifying events occur that would result in the loss of any healthcare 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. Also, you are eligible to continue your participation in the healthcare 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.

What to expect

If you are covered under the FedEx Corporation Group Health Plan, FedEx Custom Critical, Inc. Medical, Dental and Vision Care Plan, or FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care 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 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 your state government’s website. To learn more about the Federal Health Insurance Marketplace and federal premium tax subsidies, go to healthcare.gov.

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.

*If you reside in Puerto Rico, 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.

At age 65, you become eligible for Medicare. Visit medicare.gov to learn more.

Social Security

Depending on how long you've been working, you may be eligible to receive Social Security retirement benefits. The amount of your Social Security benefits is based on your earnings averaged over your working career and the age you begin receiving benefits.

Social Security replaces only about 40% of retirement income for a typical retiree, and, in some cases, replaces much less.

That’s why some retirement experts advise you to meet your retirement needs with income from a pension plan (if applicable), a 401(k), and other investments – and view your Social Security benefits as an added bonus.

To estimate how much money you'll receive in monthly Social Security payments:

  • Decide when to begin benefits. (Before you decide, consider your financial and healthcare needs, if you'll work in retirement and other factors.) If your benefits begin:
    • At age 62, you'll receive lower monthly payments for a longer period of time.
    • Between ages 65 and 67 (depending on the year you were born), you'll receive higher monthly payments for a shorter period of time.
  • Visit the Social Security website ssa.gov and estimate the benefit amount.
  • Remember that payments for Medicare health coverage will be deducted from your Social Security payments.

How you earn Social Security benefits

40 credits

Must have 40 credits (approximately 10 years of work credits)

35 years

Social Security full retirement age with unreduced benefits (depends on the year of your birth)

Your work history directly impacts your future Social Security benefits. For every year you work, you earn work credits, and your earnings are recorded. Social Security uses this information to calculate your benefit.

You need at least 40 credits (10 years of work for most Americans) to qualify for retirement benefits. The 35 years with your highest earnings count toward your benefit calculation.

If you have income recorded for fewer than 35 years, the benefit calculation assigns a zero value for each year short of 35. For example, if you have income recorded for only 30 years, the benefit calculation averages that income with 5 years of zero income.

It’s important to check your credits and recorded earnings. Make sure they are accurate. If they are not accurate, inquire immediately.

You have three years, three months, and 15 days after the year in which the wages were paid, or the self-employment income was derived to correct earnings. After that, generally, your earnings record cannot be changed. Check your Social Security account earnings records and get an estimate of benefits here.

When you decide to start receiving your Social Security benefits and whether you continue to work after starting your Social Security benefits matter. When you get closer to retirement age, you will want to check your income record for your 35 highest paid years. You may decide to work additional years to:

  • Replace a low-income year with a higher income year.
  • Replace a zero-income year with a higher income year.
  • Increase your payments if you delay starting the benefit beyond your full retirement age, up to age 72.

When you need to apply for Social Security benefits depends on when you want payments to begin:

  • To begin payments at age 62, contact the Social Security Administration in advance to determine which month is best to start. (In some cases, the timing can affect the benefit amount.)
  • To begin payments at any other time, apply for benefits three months before you want to receive the first payment.

Options for when to take your Social Security benefits

Age 62

With reduced benefits

Age 66 to 67

Social Security full retirement age with unreduced benefits (depends on the year of your birth)

  • You can work while you receive Social Security retirement (or survivors) benefits.
  • If you begin taking your Social Security before reaching full Social Security retirement age, make sure you’re aware of the earnings limits. There are restrictions on how much you can earn.
    • If you earn more than the allowable income, your benefits may be reduced.
    • If you want the option of earning more than the legally allowed limit, consider delaying the start of your Social Security benefits. 
    • Regulations are subject to change.
  • Any pension payments (from work for which you paid Social Security taxes) do not count against your Social Security income limits.
  • Delaying Social Security benefits beyond your full Social Security retirement age may also increase your payments when you decide to start receiving your Social Security benefits.

Medicare

Funded through your personal payroll deductions, you will have access to Medicare beginning at age 65; it covers basic medical services but no long-term care expenses. Basic information on Medicare options can be found at medicare.gov or by calling 1-800-MEDICARE (1-800-633-4227).

Medicare offers Part A and Part B plans, and private insurers take up the slack – for a fee – with supplemental plans generally referred to as a Medicare supplement or Medigap plans.

Here is a simple summary of what the plans cover.

Note: It is important to do your own research. For more information, go to medicare.gov, which provides loads of information that is easy to understand. It also offers a tool to help you compare costs and coverage.

  • Hospitals
  • Skilled nursing facilities
  • Hospice
  • Home healthcare
  • Doctor's fees

If it’s getting close to time to sign up, start your research now. Generally, your initial enrollment period begins three months before you turn age 65.

If you have time before you reach retirement, it doesn’t hurt to start the education process. Gathering information over time will help you be better prepared and not totally overwhelmed as enrollment time nears.

The FedEx benefits described on this website are based on a formal plan document or contract. While this information is intended to be accurate, retirement benefits are subject to the detailed provisions of the applicable plan documents. If there is a conflict between this website and the official plan documents, the plan documents always govern. You are not entitled to retirement plan benefits due to a misstatement on or an omission from this website. FedEx reserves the right to amend or terminate any benefit plan at any time and for any reason.