Originally Posted by
767pilot
UPS gets 12% of pay up to IRS limits as a company contribution to our B plan. We have a 401k as well. On the defined benefit side we have a 1% A plan which actually pays out based on a flat rate table of 3000 per year. #0 years=90k a year pension plus all of your cash accounts.
You mentioned UAL, they have a 401k plus a B plan of 15%
Retirement plans are not dead in this industry by a long shot
767pilot here is how I understand the ups retirement plan
Our defined benefit of 1% (Aplan) is based on the IRS limit for the year you retire (approx 220k for 2007) This regardless of the IRS limit the UPS A plan is capped at 300k. The Flat rate benefit of 3,000 (for Capts or exCapts) is used if your A plan income would be less. The Flat rate benefit is NOT inflation based and remains at $3,000 through out the contract.
The A plan and Flat rate benefit are not the same thing.
As inflation eats away at the flat rate amount this contract benefit will be worth less money in real dollars. The IRS limit on A plans of approx 220K (whats the exact number?) would be 66k in todays money. This is the amount a pilot could expect in real dollars base on the ups contract in 10 years or so.
Of course math in public is scary so my numbers may be inaccurate