Fly By Night: R&I Committee – TA Retirement Options May 2026

In this episode of the FDX ALPA Podcast, Captain Chris Lee hosts R&I Committee Chair Captain Kevin Biggins to break down the three retirement options available under the new Tentative Agreement (TA) for FedEx pilots, effective from April 8, 2026. The discussion covers Option One, which maintains the current structure with a higher Final Average Earnings (FAE) cap of $340,000, while keeping the 401k (PRSP) contribution capped at 9%. Option Two introduces a split plan: a market-based cash balance plan with uncapped company contributions (starting at 9%, rising to 10% by 2029) and an uncapped DC plan, with a $290,000 FAE cap under a 'soft freeze' that preserves future earnings growth. Option Three is a fully uncapped 18% to 19% company contribution into the PRSP, with excess amounts paid as cash. A key innovation is the inclusion of company contributions during Long-Term Disability (LTD), with 85% of contributions preserved for pilots in Options Two and Three. New hires will be automatically enrolled in Option Two, without legacy pension benefits. Pilots must elect their preferred option between April 15 and May 30, 2027, with a default to Option One if no action is taken. A new online modeler will help pilots evaluate their choices during ratification. The episode emphasizes the importance of education and informed decision-making, with the podcast serving as a supplement to more detailed resources. Key takeaways include the significant increase in FAE caps, the introduction of uncapped contributions, the inclusion of LTD contributions, and the need for proactive election. The tone is informative and encouraging, with a focus on empowering pilots with clarity and control over their retirement planning. The overall sentiment is positive, reflecting confidence in the improved benefits and the collaborative process behind the agreement.