The bond allocation looked at each persons A fund benefit at retirement.
Then that retirement was put into a present value.
Then that present value was offset, by the present value of the PBGC benefit that he pilot would receive, and the present value of future C fund contributions.
That left everyone with a gap.
That gap was paid at the same percentage for every pilot. (roughly 50%)
The pilots that got "screwed" and didn't get much money had a small gap. In other words, those pilots were basically made whole by PBGC and C fund contributions.
If the formula was changed to reflect age 65, there would have been very little change, as it would affect all pilots the same. Bigger gap, but roughly the same ratios.
There were some assumptions, like everybody bid the highest paying seat they could. The stovepipe method gavee pilots heartburn, but they could not understand the fact that they may be a 767 captain now, but couldn't possibly hold that position if people senior to them had not bypassed.
Under a retro check scenario, what assumptions will be used?
Rumors of banding, will they look at 767 hours vs 757. Intl. vs domestic?
What payrate, when.
Retro calculations could easily equal the bond for complexity
