Benefits December 18, 2009

FedEx Puts Back Part of 401(k) Match

December 18, 2009 (PLANSPONSOR.com) – Still cautious about a slow U.S. economic recovery, package shipper FedEx Corp. announced it would reinstate half of its 401(k) match as well as its merit salary increase and bonus programs.

Reported by

Chief Financial Officer Alan B. Graf Jr. told analysts on a conference call that the company was not yet certain of the economy’s trajectory during 2010 so Fedex had decided to take preliminary steps to reinstitute the compensation-related programs.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

“It (dropping the match) was a shock absorber coming down to help protect the shareholders from a cash flow and earnings standpoint,” Graf said. “We need to reinvest back in that program. We are only putting half of it back up for now, as we wait and see on the strength and continuing strength of the economic improvement.”

Graf said the company was confident that its cost-cutting efforts will allow it to be able to fund the benefit programs’ return.

“You just have to take all these things together as we continue to manage them and there’s base salaries, there’s merit increases, and then there’s the compensation associated with bonus programs and with the 401(k) and they will be increasing our cost of labor but we believe that we will be able to get that back and more in productivity with our new lower cost structure and redesigned networks,” Graf noted.

The move by FedEx comes as employers around the country reinstate their matching contributions that had been cut as the economy spiraled down and pressured companies’ earnings and cash flow (see Kodak Reinstates 401(k) Match ). 

Products December 17, 2009

Wells to Offer Rollover Annuity

December 17, 2009 (PLANSPONSOR.com) – Wells Fargo’s Institutional Retirement and Trust division is offering retirement plan participants institutionally priced annuities on the Hueler Income Solutions platform.

Reported by

A Wells Fargo news release said offering the out-of-plan annuities as an IRA rollover option is part of a deal with Hueler Investment Services, Inc.

According to the news release, the Hueler annuity program was created for “transitioning investors” (both active employees and retirees) who want or need to convert a portion of their retirement nest egg into a reliable income stream.

Get more!  Sign up for PLANSPONSOR newsletters.

The program was previously offered by Wachovia Retirement Services, and Wells Fargo is now expanding this offering to all Wells Fargo institutional retirement clients, according to the announcement.

“We believe it’s important to enhance participants’ retirement readiness by providing a variety of retirement solutions both during and after their working years,” said Laurie Nordquist, director of Institutional Retirement and Trust at Wells Fargo.

 “Now more than ever before, it is critical that plan sponsors offer participants nearing or in retirement access to a low cost, prudent means of pensionizing their hard earned retirement savings. Creating a pay check for life may be the most important step an individual takes toward ensuring income sufficiency in retirement,” said Kelli Hustad Hueler, CEO of Hueler Companies.


«