One Step

Saving made simple

The FedEx 401(k) Plan’s One Step® feature automatically enrolls you in the FedEx 401(k) Plan when you become eligible. One Step is an easy, automatic way to begin saving in the FedEx 401(k) Plan and to increase your contribution rate each year.

Here’s how One Step works if you are a new employee:

1. You’re automatically enrolled in the FedEx 401(k) Plan.
   One Step makes saving for your future convenient and easy. Best of all, there’s no need to sign up. You’ll be enrolled automatically in your FedEx 401(k) Plan within 14 days of your Plan Entry Date (the date Age 21 and one month of service is attained).* You will be enrolled automatically at a Pre-tax contribution rate of 3% of your eligible earnings.
   
   

   Now is a great time to save more
   You'll be enrolled through One Step at a Pre-tax contribution rate of 3%. But you can save more than that—up to 50% of your eligible earnings. If you'd like to save more, you can increase your contributions at any time after you're enrolled in the plan. Simply log on to your account at vanguard.com and click Change paycheck deductions.
   
   Not sure how much you should save? Use Vanguard's Retirement Income Calculator to figure out how much money you might need in retirement.
   
   Consider saving 12% to 15% of your pay for retirement, including any contributions your employer might make. Or if you can't afford to save that much more now, consider increasing your contribution rate by a percentage point or two each year until it reaches the savings goal you choose.
   
   To help you save more, the plan offers a savings feature that automatically increases your contributions each year. See below for more information.
   

2. Your contributions are invested in a default fund automatically.
   Your contributions will be automatically invested in a date-specific Vanguard® Target Retirement Fund based on your age and an anticipated retirement age of 65. If your anticipated retirement date falls between two Target Retirement Funds’ target dates, Vanguard will choose the Target Retirement Fund closest to your anticipated retirement date.
   
   Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.
   
   A Target Retirement Fund—designed to be the single investment in one’s account—provides diversification and is designed to keep your assets invested appropriately for someone in your stage of life, up to and including your retirement years. However, you can transfer your balance out of that fund into other funds in the FedEx 401(k) Plan or redirect your future contributions at any time.
   
   Keep in mind that although Target Retirement Funds can simplify investing, all investing is subject to risk. Each Target Retirement Fund invests in several broadly diversified Vanguard funds. Diversification does not ensure a profit or protect against a loss in a declining market.
   
   
3. Your contributions will increase automatically each year.
   One Step makes it easier to save more each year, too. After one year of employment, in March of each subsequent year, your contribution rate will increase by one percentage point (unless you choose a different contribution rate) until it reaches 10% of your eligible earnings. If employed less than one year at the time of the scheduled increase, the automatic increase will be skipped until the next year’s scheduled increase. However, any employee who elected a different date for the automatic increase will not be affected by the March increase date.
   
   

   Keep saving more each year
   After reaching 10% in Pre-tax contributions, you can continue to increase your contributions up to 50% of your eligible earnings. To change the amount of your contributions, log on to your account at vanguard.com and click Change paycheck deduction. Or you can call a Vanguard Participant Services associate at 1.800.523.1188.
   

IMPORTANT

• If you are automatically enrolled in the FedEx 401(k) Plan and subsequently are on any type of unpaid leave of absence, including short- or long-term disability, your automatic enrollment contributions will continue with your next paycheck unless you opt out or change your contribution election.
• If you are a rehired employee, special rules apply to your enrollment when you return to the company. Generally, if you have been separated from service for less than 24 months and were enrolled in the FedEx 401(k) Plan prior to your termination, and following your rehire you fail to choose to participate in the FedEx 401(k) Plan, you will be automatically re-enrolled at the same Pre-tax contribution rate in effect prior to your termination. In addition, any automatic contribution rate increases that would have occurred during that time will be applied. Rehires terminated from service for at least 24 months will be automatically enrolled with an initial payroll deduction of 3%. This savings rate will be increased by one percentage point until it reaches the Plan's designated automatic savings limit of 10%.
• You may change or cancel any of these features if you wish, as instructed below. If you do not want to participate in the FedEx 401(k) Plan, you must contact Vanguard as soon as possible after receiving your eligibility notification.
• To opt out of participating in the FedEx 401(k) Plan, change your payroll deductions, choose different investments or change your automatic increases, contact Vanguard online at vanguard.com or by phone at 1.800.523.1188.
  

*Your Plan Entry Date is the exact date you reach Age 21 and complete one month of employment. Any prior FedEx service may be counted in determining your Plan Entry Date.