Plus   Neg

FedEx To Buy Group Annuity Contract From Metropolitan Life

FedEx Corp. (FDX) Tuesday said it agreed to buy a group annuity contract and transfer about $6 billion of the company's U.S. pension plan obligations to Metropolitan Life Insurance Company.

The transaction will transfer responsibility for pension benefits to Metropolitan Life for around 41,000 FedEx retirees and beneficiaries who satisfy certain conditions and currently receive a monthly benefit from participating FedEx tax-qualified U.S. domestic pension plans.

The deal is expected to close on May 10, 2018.

"FedEx is committed to maintaining financially secure pension benefits for our retirees and their beneficiaries," said Alan Graf, Jr., executive vice president and CFO, FedEx Corp. "This transaction better positions FedEx to manage future pension plan costs, and retirees will receive the same pension benefit from a highly rated insurance company."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Swedish digital music service Spotify announced the launch of its standalone Kids application Spotify Kids app in the U.S., Canada, and France. Spotify Kids app in beta is designed specifically for kids aged three and older. It offers more than 125 playlists. With the ad-free app, young listeners can explore sing-alongs, soundtracks, and stories on their own or with their families. BodySphere Inc. said the U.S. Food and Drug Administration has issued Emergency Use Authorization for its Two-Minute Testing Kit COVID-19 IgG/IgM Rapid Test Cassette, to diagnose the novel coronavirus. The company is working with State and Federal governments to deliver tests across the country directly to the front lines, as the United States is facing a surge in the coronavirus cases. Xerox Holdings Corp. (XRX) dropped its $24 per share hostile bid to acquire HP Inc. (HPQ), citing the current global health crisis and economic uncertainty caused by the COVID-19 pandemic.
Follow RTT