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FedEx to Upgrade Retirement Plans for Most Employees
FedEx Corp. said Tuesday it has set new measures aimed at modernizing the retirement plans for most of its employees, including enhancing its 401(k) plans.
These moves, which will take place in the coming year, are in direct response to recent legislative, regulatory and demographic changes that continue to dramatically reshape U.S. retirement benefit needs, FedEx said in a statement.The company said it will continue to offer retirement benefits entirely by the company while enhancing 401(k) plans. It expects to spend about the same amount on retirement plans over time as it would have under its current design and rules.Under the 401(k) plans, FedEx will increase its matching contributions for most employees and provide additional investment options.It said it will take advantage of changes under recently enacted legislation that allow it to automatically enroll employees and increase their saving contributions each year to boost savings.FedEx is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.