Boosting Retirement Age and FMLA Takeaway

Artee

Well-Known Member
The handout we were given from FedEx legal in our meeting stated that this does not apply in CA. Everybody looked at each other and wondered why were discussing this then. Manager just wanted to keep us in the loop. I will see if I kept the old handout. Wasn't this announced back in March? Maybe things have changed.
 

MAKAVELI

Well-Known Member
Never saw the handout. Our management never mentioned it was not applicable to California. But here's the link.
http://www.dfeh.ca.gov/Publications_CFRADefined.htm
An employer is not required to pay an employee during a CFRA leave, except when an eligible employee elects, or the employer requires, the employee to use any accrued vacation time or other accumulated paid leave other than accrued sick leave.

However, if CFRA leave is for the employee's own serious health condition, the employee may elect or the employer may require the employee to use any accrued vacation time or other accumulated paid leave, including any accrued sick leave. Additionally, the employee may elect to use accrued sick leave for any other reason mutually agreed to by the employer.
 

The Mayor

Well-Known Member
My point is the letter Express employees received says FedEx was "required" to make these changes, but they don't mention a federal agency. Who is doing the "requiring"? One would think they would cite who directed such changes in order to deflect blame.

We recently had a station meeting. In it, someone asked about this. Our senior manager told us that this came from this IRS of all places saying that we were being forced to do this. In the letter we received, it does state this under IRS code Section 417(e). The changes only effect those benefits accrued after Feb. 1, 2016. So, all funds accumulated prior to this date are not effected, according to him.
 

MrFedEx

Engorged Member
We recently had a station meeting. In it, someone asked about this. Our senior manager told us that this came from this IRS of all places saying that we were being forced to do this. In the letter we received, it does state this under IRS code Section 417(e). The changes only effect those benefits accrued after Feb. 1, 2016. So, all funds accumulated prior to this date are not effected, according to him.


I just looked up 417(e), and it's a jumble of legalese. I tossed my letter after reading it, and I did not see mention of the IRS in the main body of the letter. I will read 417(e) in detail when I get the chance and see if it's comprehensible.
 

bacha29

Well-Known Member
I found the summary plan description and it looks like annuity pay outs will be based on age 62. The entire description is based on a slew of amendments and it looks like they have to do with life expectancy and interest rates. I'm not in the plan so I'm not going to sit up all night ginding through the entire code section but it would appear that maximum pay out begins at 65 with a reduced monthly payout beginning atat age 62. Rock bottom interst rates also appear to have influenced the changes.
 

Artee

Well-Known Member
Never saw the handout. Our management never mentioned it was not applicable to California. But here's the link.
http://www.dfeh.ca.gov/Publications_CFRADefined.htm
An employer is not required to pay an employee during a CFRA leave, except when an eligible employee elects, or the employer requires, the employee to use any accrued vacation time or other accumulated paid leave other than accrued sick leave.

However, if CFRA leave is for the employee's own serious health condition, the employee may elect or the employer may require the employee to use any accrued vacation time or other accumulated paid leave, including any accrued sick leave. Additionally, the employee may elect to use accrued sick leave for any other reason mutually agreed to by the employer.

Yep...you have it right. I was told yesterday that it is optional in California and I believe Nebraska to elect to use your vacation time for FMLA, but not required.
 
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