Pension costs at FedEx may skyrocket

Discussion in 'The Archives' started by bigshot, Jan 14, 2003.

  1. bigshot

    bigshot Guest

    http://www.bizjournals.com/memphis/stories/2003/01/13/daily18.html

    Pension costs at FedEx may skyrocket

    excerpts:

    FedEx Corp. says it's "reasonably possible" that its pension costs will increase by $80 million-$120 million in fiscal 2004.

    With annual revenue of $22 billion, Memphis-based FedEx is a global provider of transportation, e-commerce and supply-chain management services.

    The company estimates its pension costs for fiscal 2003 will be $80 million higher than the previous year because of decreased returns on pension assets and a lower discount rate used to measure its pension obligations, the filing says.

    FedEx previously said it has contributed $241 million to its pension plans so far in fiscal 2003, ending May 31, and may make added contributions, although it's not required to do so under pension laws.