Your Retirement Your Retirement: Plan Today. Play Tomorrow About this presentation: This presentation includes the following plan: FedEx Kinko’s Office and Print Services, Inc., 401(k) Retirement Savings Plan (FedEx Kinko’s 401(k) Plan) This presentation is for participants in the FedEx Kinko’s Office and Print Service, Inc.

Your Retirement What percentage of workers in the U.S. say they or their spouses are currently saving for retirement? a. 48% b. 58% c. 68% d. 78% Employee Benefit Research Institute Question:

Your Retirement What percentage of workers or their spouses have calculated how much money they are likely to need in retirement? a. 42% b. 52% c. 62% d. 72% Question: Employee Benefit Research Institute

Your Retirement Your Retirement: Plan Today. Play Tomorrow. Personal Savings (You contribute 100%) Social Security (FedEx contributes 50%) 401(k) Plan (Both you and FedEx contribute)

Your Retirement What percentage of baby-boomer households are estimated to be accumulating sufficient assets to maintain their current standard of living in retirement? a. 40% b. 50% c. 60% d. 70% Congressional Budget Office Question:

Your Retirement Among individuals age 50 to 59 – people approaching retirement – what is the average balance in their 401(k)s? a. $ 88,658 b. $112,854 c. $288,842 d. $388,125 Employee Benefit Research Institute (EBRI), 2003 Question:

Your Retirement Your Retirement: Plan Today. Play Tomorrow. Personal Savings (You contribute 100%) Social Security (FedEx contributes 50%) 401(k) Plan (Both you and FedEx contribute)

Your Retirement FedEx Kinko’s 401(k) Plan: The Details What Is It? –A convenient way to save $$$ –Company match (discretionary) from FedEx –An opportunity for more money down the road –A great way to lower your taxes

Your Retirement FedEx Kinko’s 401(k) Plan: Eligibility You can start contributing after one year of service –A year of service is any 12 months in which you are employed by FedEx Kinko’s, including vacation, approved leaves of absence (up to one year), sick leave, or maternity leave.

Your Retirement FedEx Kinko’s 401(k) Plan: Pre-tax Contributions You may contribute: –1% - 50% of Eligible Earnings Contributions deducted from pay before tax Tax-deferred investment earnings FedEx Kinko’s matches: –100% of your total pre-tax contributions up to 5% of eligible earnings 100% immediate vesting Nine investment funds

Your Retirement 401(k) Plan: How the FedEx Match Works You contribute...FedEx match gives you... PercentageAmount* 1%$10$5 2%$20$10 3%$30$15 4%$40$20 5%$50 $25 6%$60 $30 7%$70$30 8%$80$30 * Assumes $24,000 annual salary, paid semi-monthly

Your Retirement Year FedEx Kinko’s match Your contribution $1,040 $2,080 $3,120 $4,160 $5,200 $520 $1,040 $1,560 $2,080 $1,560 $2,080 $2,600 *Assumes $10 contribution per week with a $10 match and no investment earnings. 401(k) Plan: How the Match Works

Your Retirement 401(k) Plan: How the Match Works FedEx Kinko’s match Your contribution $15,600 $29,300 $78,900 $122,300 $6,300 $3,150 $7,800 $14,650 $24,700 $39,450 $49,400 $39,450 $61,150 Year * Assumes $10 contribution per week with a $10 match and 8% annual return.

Your Retirement FedEx Kinko’s 401(k) Plan: Catch-up Contributions To be eligible for the Catch-up contribution, you must be: – 50 years of age or older by the end of the calendar year, and meet one of the following conditions: You meet the annual IRS maximum contribution limit ($14,000 in 2005); or You meet the plan maximum contribution limit of 50%. The maximum pre-tax contribution limit is 50% of your eligible compensation, subject to annual IRS limits. If you will attain age 50 by the end of the calendar year, you may elect to make an additional $4,000 catch-up contribution beyond the $14,000 maximum.

Your Retirement FedEx Kinko’s 401(k) Plan: Roll-over Contributions If you have money in a 401(k) plan with another employer, you can transfer (roll over) that account to the FedEx Kinko’s 401(k) Plan. You must be a plan participant before you can roll over contributions. After-tax contributions are not accepted into the Rollover account.

Your Retirement FedEx Kinko’s 401(k) Plan: Investment Options Nine Vanguard® Investment Funds –Vanguard Admiral™ Treasury Money Market Fund –Vanguard Total Bond Market Index Fund Institutional Shares –Vanguard Wellington™ Fund –Vanguard 500 Index Fund –Vanguard Windsor™ fund –Vanguard PRIMECAP Fund –Vanguard Extended Market Index Fund –Vanguard International Value Fund –Vanguard Total International Stock Index Fund

Your Retirement FedEx Kinko’s 401(k) Plan: Investment Options RISK RETURN Vanguard Admiral™ Treasury Money Market Fund CASH Vanguard Total Bond Market Index Fund Institutional Shares BONDS Vanguard Wellington™ Fund BALANCED Vanguard PRIMECAP Fund Vanguard Total Intl Stock Index Fund Vanguard Windsor™ Fund Vanguard International Value Portfolio Vanguard Extended Market Index Fund STOCKS Vanguard 500 Index Fund

Your Retirement FedEx Kinko’s 401(k) Plan: Receiving Your Money If you need your 401(k) money while you’re still working at FedEx Kinko’s, you can: –Take a loan (2 loans allowed) –Make a withdrawal Age 59 ½ Hardship

Your Retirement FedEx Kinko’s 401(k) Plan: Receiving Your Money If you terminate from all FedEx companies, you can: –Leave your account balance invested in the FedEx Kinko’s 401(k) Plan; –Roll over your account balance into another 401(k) plan or IRA; or –Take the distribution, and pay taxes and penalties.

Your Retirement What is the most important factor in Americans’ decision to retire? a. Employer pressure b. Health decline c. Family reasons d. Qualify for Social Security benefits National Council on the Aging Question:

Your Retirement At what age do Americans qualify for full Social Security benefits? a. 65 b. 66 c. 67 d. Varies by year of birth Employee Benefit Research Institute Question:

Your Retirement What is the average monthly Social Security payment for retired workers? a. $950 b. $1,450 c. $1,950 d. $2,450 Employee Benefit Research Institute Question:

Your Retirement Your Retirement: Plan Today. Play Tomorrow. Personal Savings (You contribute 100%) Social Security (FedEx contributes 50%) 401(k) Plan (Both you and FedEx contribute)

Your Retirement Social Security Overview –Established in 1935 –Paid for by you and your employer (FedEx) Provides protection for: – Retirement – Disability – Health – Death

Your Retirement Social Security To receive a Social Security retirement benefit you must: –Have at least 10 years of work credits –Be at least age 62 (reduced benefit) –Meet the earnings limitations

Your Retirement Social Security How much can you expect in benefits? –The more you earn while working, the higher your Social Security benefit in retirement (but the lower your replacement rate). –The lower your earnings while working, the higher the percentage of your earnings Social Security replaces. –Obtain a free Personal Earnings and Benefit Estimate Statement from Social Security upon request.

Your Retirement Social Security When to File –Three months before your Social Security normal retirement age or when you stop work –The year you plan to retire, call Social Security to get an estimate and ask when to file –For general information and to schedule an appointment: What You Will Need –Your Social Security card –Proof of your age –Your W-2 Forms for the past two years, or copies of your last two federal income tax returns

Your Retirement Your Retirement: Plan Today. Play Tomorrow. Personal Savings (You contribute 100%) Social Security (FedEx contributes 50%) 401(k) Plan (Both you and FedEx contribute)

Your Retirement Personal Savings Your own personal savings add to your retirement savings package. Most financial planners recommend that your retirement income should be between 75-85% of your pre-retirement income. If your 401(k) savings when combined with your anticipated Social Security retirement benefits aren’t equal to the amount you need to retire, the difference will need to come from your personal savings outside of FedEx Kinko’s. Consider increasing your 401(k) contributions, too.

Your Retirement Personal Savings: Save as Much as You Can – As Soon as You Can Assumes $30,000 salary, 8% return, 30 years $45,000 $90,000 $135,000 $176,500 $353,000 $529,500 5% ($28.85 weekly) 10% ($57.69 weekly) 15% ($86.54 weekly)

Your Retirement Resources and Contacts Summary Plan Description (SPD) or Vanguard at

Your Retirement For more information about any fund, including investment objectives, risks, charges, and expenses, call The Vanguard Group at to obtain a prospectus. The prospectus contains this and other important information about the fund. Read and consider the prospectus information carefully before you invest. You can also download Vanguard fund prospectuses at Vanguard, Admiral, Wellington, and Windsor are trademarks of The Vanguard Group, Inc. 500 is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by The Vanguard Group, Inc. Vanguard mutual funds are not sponsored, endorsed, sold, or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of investing in the funds. All other marks are the exclusive property of their respective owners.