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Old 12-26-2013 | 10:39 PM
  #22  
kwri10s
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Joined: Jul 2006
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What would be wrong with allowing new hires to choose A, B or a combo. Let them take control of their decisions. If the new hire is young enough, a 20% B fund would look tempting vs an A fund. IF the company really wants to sell more B fund vs A fund, then they could add in a big 401k match for those that elect the B fund retirement plan. It would not be too complicated to throw a mixed choice in where you could choose say a 15% B and a 25% A or whatever.

For that matter, the company would not have to divide the cockpit (good point), they could offer the same choices to all pilots. Of course most currently on property are older and would not forgo an A for a few years of increased B. But there are some young guys here that might make a choice of a combo package.

Some numbers would make you really have to think about it. What about a 25% B with a company match 401K 1 for 1. I know I didn't take into account the IRS limits with my vision. FDX has enough money to throw at this problem and make it go away. I don't think they would ever throw enough to really solve it, but they could if they wanted to. If they want out of the A fund business, there are ways to get out without going to war with the crew force...but we know the tactic they will take.
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