Originally Posted by
CloudSailor
After what's happened in the last 6 years, with bankruptcies, wage reductions, givebacks, etc... which airlines are left with a sound pension plan? I know United and Delta lost most of theirs... How do FedEx and UPS fare? Are the pensions well funded? How many years does one have to fly for the company to retire with a pension? How long and how much is it equivalent to?
I wish I posted more answers than questions on this forum, but, trying to learn...
Thanks.
At FedEx we currently have a 3 tiered retirement.
1.) "A" Plan (defined benefit). It is made up of 2% accrual per year of service to a max of 25 years multiplied by the average of ones "high five" earning years (maxed at 260k). So if the average of the high five is 250k and with 25 years of service (50%) the annual "A" plan retirement benefit is 125k/yr.
2.) "B" Fund (defined contribution). Company pays into a mutual fund account that belongs to the individual, 7% of the pilots qualifying annual salary. 250k/yr times .07= 14.5k/yr.
3.) 401k Standard mutual fund account. Company match of first $500. Fundable to a max of 15.5k/yr (this year).
Our choices for mutual fund investment is relatively limited to the Vanguard family. Within the Vanguard family our choices are limited to a select dozen or so funds.