Fedex Pilots proposed retirement plan
07-09-2017, 04:40 AM
#11
New Hire
Joined APC: Aug 2015
Position: B777 Capt
Posts: 7
VAPP sounds great! I propose something even better... PUKE
Pilots
Unified for
Keeping
Everything
We can get Frank Fatto and Paul Ca$$el out of retirement and pay them and a bunch of lawyers big fees to get us back what we had in the previous contract.
Where can I send my checks?
Pilots
Unified for
Keeping
Everything
We can get Frank Fatto and Paul Ca$$el out of retirement and pay them and a bunch of lawyers big fees to get us back what we had in the previous contract.
Where can I send my checks?
07-09-2017, 04:56 AM
#12
Gets Weekends Off
Joined APC: Mar 2012
Position: Two Wheeler FrontSeat
Posts: 1,162
Originally Posted by CompetentFool
The Pension Protection Act of 2006 had onerous funding requirements for all the major pension plans in the US. So congress allowed the following:
period beginning in 2008.
So evidently FedEx owes our pension a couple billion dollars to meet this requirement in 2018. It's cheaper for the company to hand off the plan to ALPA and then allow ALPA to administer the plan outside of the PPA 2006 funding requirements. Thus the VAPP. FedEx continues to make monthly funding payments to ALPA but avoid the 2 billion cash payment due next year.
"Stop giving the company ideas for next negotiation". Haha, you're right. I should have known the company negotiators peruse this board on a daily basis for ideas on how to run their company. "Hey Fred, we're out of negotiating ideas... I guess we'll just give ALPA everything they've asked for. Fred- "Damnit no! Check the APC board for ideas on how to run this five billion dollar company. Those dumbsheet pilots are full of good ideas"
Airline Relief
. The PPA includes special rules for
commercial passenger airlines and airline catering
companies. Generally, plans sponsored by these entities
may elect to amortize any funding shortfalls over a ten year
commercial passenger airlines and airline catering
companies. Generally, plans sponsored by these entities
may elect to amortize any funding shortfalls over a ten year
period beginning in 2008.
So evidently FedEx owes our pension a couple billion dollars to meet this requirement in 2018. It's cheaper for the company to hand off the plan to ALPA and then allow ALPA to administer the plan outside of the PPA 2006 funding requirements. Thus the VAPP. FedEx continues to make monthly funding payments to ALPA but avoid the 2 billion cash payment due next year.
"Stop giving the company ideas for next negotiation". Haha, you're right. I should have known the company negotiators peruse this board on a daily basis for ideas on how to run their company. "Hey Fred, we're out of negotiating ideas... I guess we'll just give ALPA everything they've asked for. Fred- "Damnit no! Check the APC board for ideas on how to run this five billion dollar company. Those dumbsheet pilots are full of good ideas"
07-09-2017, 06:21 AM
#13
Gets Weekends Off
Joined APC: Aug 2006
Position: leaning to the left
Posts: 4,184
It's hard to continue to fund pension plans when you've raised your stock dividend 500% in the past 9 years.(I won't even talk about senior management raises)
2008---FDX stock paid .40/ share (~$106 Million annually)
2017---FDX stock pays $2.00/share (~$530 Million annually)
That's now an additional $424 million, of our profits, we pay to the shareholders every year. I don't have a problem with a corporation paying a dividend...Just not at the expense of the labor that earned those profits.
2008---FDX stock paid .40/ share (~$106 Million annually)
2017---FDX stock pays $2.00/share (~$530 Million annually)
That's now an additional $424 million, of our profits, we pay to the shareholders every year. I don't have a problem with a corporation paying a dividend...Just not at the expense of the labor that earned those profits.
07-09-2017, 10:44 AM
#14
Gets Weekends Off
Joined APC: Mar 2012
Position: Two Wheeler FrontSeat
Posts: 1,162
Originally Posted by Busboy
It's hard to continue to fund pension plans when you've raised your stock dividend 500% in the past 9 years.(I won't even talk about senior management raises)
2008---FDX stock paid .40/ share (~$106 Million annually)
2017---FDX stock pays $2.00/share (~$530 Million annually)
That's now an additional $424 million, of our profits, we pay to the shareholders every year. I don't have a problem with a corporation paying a dividend...Just not at the expense of the labor that earned those profits.
2008---FDX stock paid .40/ share (~$106 Million annually)
2017---FDX stock pays $2.00/share (~$530 Million annually)
That's now an additional $424 million, of our profits, we pay to the shareholders every year. I don't have a problem with a corporation paying a dividend...Just not at the expense of the labor that earned those profits.
Well said Busboy, I tired of people making excuses for why FedEx can't or don't want to continue the pension plan.
07-09-2017, 12:00 PM
#15
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
Pension plan is funded.
Pension is also not changing.
Pension also contains no COLA.
If taking on some risk = a higher earnings CAP + COLA (during rising markets),
not sure why I'd veto it out of hand.
The era of no Govt oversight of pension plans is long gone
Pension is also not changing.
Pension also contains no COLA.
If taking on some risk = a higher earnings CAP + COLA (during rising markets),
not sure why I'd veto it out of hand.
The era of no Govt oversight of pension plans is long gone
07-09-2017, 08:38 PM
#18
Gets Weekends Off
Joined APC: Sep 2006
Position: MD11 FO
Posts: 1,109
Originally Posted by StarClipper
Why is this even a discussion? A highly profitable company like FedEx and there's discussion of relieving them if their responsibilities the retirement plan. The discussion should be how can the pilot retirement plan be tied into managements retirement plan. Anything else about different option should not even be entertained. Stop giving the company ideas for next negotiation
07-10-2017, 03:50 AM
#20
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
Yes,
greater returns as discussed in the link posted.
Few months ago CD held an AOC meeting, pretty fired up about some of the ideas being researched to potentially improve our A plan (need mgt agreement).
Ideas that wouldn't reduce or change the funding component, but reduce the administrative costs and pass those savings onto US.
For a newhire (or a retiree) the value of our A plan is going to decrease. Assuming a relative constant inflation our A plan's current value of 130k per year is cut in half in 28-30 years (sooner if Inflation spikes)
For comparison, over the same time NB Captain salary of 260'sh K will grow to 520'sh k...so what is currently a 50'sh % A plan for NB Captains (and FO's) will be a 25'sh % A plan (would be a higher percentage for FO's, just as you'd currently have to be a pretty hard working FO to wind up with an A plan that's less than 50%. But we do have FO's who make 260+ currently)
greater returns as discussed in the link posted.
Few months ago CD held an AOC meeting, pretty fired up about some of the ideas being researched to potentially improve our A plan (need mgt agreement).
Ideas that wouldn't reduce or change the funding component, but reduce the administrative costs and pass those savings onto US.
For a newhire (or a retiree) the value of our A plan is going to decrease. Assuming a relative constant inflation our A plan's current value of 130k per year is cut in half in 28-30 years (sooner if Inflation spikes)
For comparison, over the same time NB Captain salary of 260'sh K will grow to 520'sh k...so what is currently a 50'sh % A plan for NB Captains (and FO's) will be a 25'sh % A plan (would be a higher percentage for FO's, just as you'd currently have to be a pretty hard working FO to wind up with an A plan that's less than 50%. But we do have FO's who make 260+ currently)
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