FedEx drives $200 million into pension funds, plans additional $600 million for fiscal year

FedEx Corp., Memphis, Tenn., made a voluntary contribution of $200 million to its U.S. pension funds in June and plans to contribute an additional $600 million during the fiscal year ending May 31, 2024.

The shipping company is making the contributions despite having no minimum required contributions for the period, according to its 10-K filing with the SEC on Monday.

FedEx contributed a total of $826 million to its U.S. pension plans during the fiscal year ended May 31, according to the filing.

As of May 31, FedEx's U.S. pension plan assets totaled $24.8 billion, while projected benefit obligations totaled $26.4 billion, for a funding ratio of 93.9%, up from 90.5% a year earlier.

Also as of that date, the plans' discount rate was 5.2%, up from 4.25% the year before.

The plans' asset allocation as of May 31 was 26% corporate fixed income, 17% each alternative investments and government fixed income, 12% domestic large-cap equities, 11% international equities, 6% mortgage-backed securities and other, 5% global equities and 3% each cash/cash equivalents and domestic smidcap equities.