Ryder to Change U.S. Pension Plan and Offer Enhanced 401(k) Plan

    MIAMI, Jan. 11 /PRNewswire-FirstCall/ -- Ryder System, Inc. (NYSE:   R),
 a global leader in transportation and supply chain management solutions,
 today announced it is redesigning its retirement program for certain
 pension- eligible employees effective January 2008. The changes will affect
 approximately 9,400 of the Company's more than 27,000 employees. Ryder will
 freeze its pension plan for current employees who do not meet certain
 grandfathering criteria and will provide these employees with an enhanced
 401(k) savings plan. No employees will lose their previously earned pension
 benefits; the benefits will be paid to the employee after retirement.
 Grandfathered employees will be given the option to remain in the current
 pension plan or participate in the enhanced 401(k) savings plan.
     These changes are in line with established marketplace trends, in which
 retirement savings through a 401(k) plan is increasingly becoming the
 standard retirement offering by employers, including the Company's
 competitors and customers.
     The new program is designed to give eligible employees more choices and
 investment options than the current pension plan, while also offering the
 increased portability, flexibility, and accessibility associated with
 401(k) plans. Ryder will make an automatic contribution of 3% of pay, even
 if employees do not choose to make a contribution -- and will provide a 50%
 match on employees' contributions up to 5% of pay. Employees also have the
 opportunity to earn an additional Ryder contribution of up to 3% of pay,
 based on Company performance. Combining the maximum employee-provided and
 Company- provided contributions, eligible employees can have as much as
 13.5% of pay for their 401(k) investment choices.
     Eligibility criteria for grandfathered employees are based on a minimum
 of 65 points (the sum of an employee's age and years of service with Ryder
 as of December 31, 2007). Additionally, Ryder will grandfather employees
 currently enrolled in the Pension Plan who have at least 20 years of
 credited service with the Company, regardless of their age.
     "We have taken great care to develop a program that we believe is in
 the best combined long-term interests of our employees and our Company,"
 said Ryder Chairman and Chief Executive Officer Greg Swienton. "We're
 providing our employees with a significant amount of time, information and
 resources to help them understand the program, properly evaluate their
 options and make the right retirement plans and decisions."
                                  About Ryder
     Ryder is a Fortune 500 company providing leading-edge transportation,
 logistics and supply chain management solutions worldwide. Ryder's stock
 (NYSE:   R) is a component of the Dow Jones Transportation Average and the
 Standard & Poor's 500 Index. For more information about Ryder System, Inc.,
 visit www.ryder.com.
     Note Regarding Forward-Looking Statements: Certain statements and
 information included in this news release are "forward-looking statements"
 within the meaning of the Federal Private Securities Litigation Reform Act
 of 1995. These forward-looking statements are based on our current plans
 and expectations and are subject to risks, uncertainties and assumptions.
 Accordingly, these forward-looking statements should be evaluated with
 consideration given to the many risks and uncertainties that could cause
 actual results and events to differ materially from those in the forward-
 looking statements including those risks set forth in our periodic filings
 with the Securities and Exchange Commission. New risks emerge from time to
 time. It is not possible for management to predict all such risk factors or
 to assess the impact of such risks on our business. Accordingly, we
 undertake no obligation to publicly update or revise any forward-looking
 statements, whether as a result of new information, future events, or
 otherwise.
 
 

SOURCE Ryder System, Inc.
RELATED LINKS
http://www.ryder.com

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