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FedEx to purchase $6 billion group annuity contract from Metropolitan Life

Staff Writer |
FedEx announced it has entered into an agreement with Metropolitan Life Insurance Company to purchase a group annuity contract and transfer approximately $6 billion of the company’s U.S. pension plan obligations.

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The transaction will transfer responsibility for pension benefits to Metropolitan Life for approximately 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.

There will be no change to the pension benefits for any plan participants as a result of the transaction.

Details will be provided to retired participants and beneficiaries whose continuing payments will be fulfilled by Metropolitan Life.

The transaction, which is subject to certain closing conditions, is expected to close on May 10, 2018.

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