HSLD

A-Plan

A defined benefit plan

TonyC

Typically defined by years of service and highest average earnings.


Different companies compute the latter portion differently. One company might use the last three or five years' earnings, while another might use the three consecutive years with the highest earnings, or another might let the pilot pick any three or five years with the highest earnings.


The Defined Benefit is a promise from the Company to pay the retiree a set amount (computed above) every month until the retiree dies (or sometimes, to the spouse if certain options are exercised.) Such a plan does not depend on the health of the stock market as the pilot reaches retirement age, but it does depend on the health of the Company, not only at the time of retirement, but up until the time he and his spouse die.



- The truth only hurts if it should -

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- TonyC


The truth only hurts if it should.

LDmax

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A-Plan

A defined benefit plan, also known as a pension, that is typically defined by years of service and highest final average earnings (FAE). Specific terms, years of participation, and payout options may be defined in a collective barganing agreement (CBA).

Different plans compute the FAE portion differently. One company might use the last three or five years' earnings, while another might use the three consecutive years with the highest earnings, or another might let the pilot pick any three or five years with the highest earnings.


The Defined Benefit is a promise from the Company to pay the retiree a set amount (computed above) every month until the retiree dies (or sometimes, to the spouse if certain options are exercised.) The A-Plan performs like, and in most all cases is, an annuity. It does not depend on the health of the stock market as the pilot reaches retirement age, but it does depend on the health of the Company, not only at the time of retirement, but up until the time he and his spouse die (See UAL ).

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dckozak

Oh course, its all meaning less if the company's business plan goes to hell and the exec's take care of themselves than declare BK.