Originally Posted by
Nightflyer
If we vote in a B-scale retirement, how long before the "killer B's" do to us what they did at American?
To be more blunt:
If we screw the young, someday they will out number us, and screw us in return.
How would you like to have your A plan taken away because the majority doesn't have one, and they negotiate it away because they don't care if you lose it?
A B-scale retirement will eventually divide the crew force.
We have enough problems already, without creating more.
Concur on all counts. However, "B Plan" is not equal to "B scale".
If new hires got 100% match in a B plan, that would certainly NOT be a B scale. If we could freeze our pension and get a 100% B plan (better defined as defined contribution plan), that would be huge.
On the other hand, giving up a pension for the existing 7 % defined contribution would be a loser.
So--is there a number that actually makes a defined contribution plan worth what our current defined benefit (A plan, or pension) is worth? I dunno.
But here is what we agree on--new hires do not need to placed on a B SCALE. B SCALE is a no go. But don't confuse your Bs…..
Fact is, a 30 something hired in 2016 might prefer a larger DC plan over our current DB plan for portability and risk management. It just comes down to a math problem if we are in fact offered such a plan.
Good news is everyone has a vote. If its not a good plan, it shouldn't pass. Reviewing my own finances, with a military pension already secure and some good earning years behind me, a rebalance might help my family. Your situation may be different.
But again--nobody gets left behind. That will haunt us for years if that occurs.