Originally Posted by
Rama
We do have an A, B, and c scale retirement program based on hire date. A is the defined benefit contribution type-average of high 3 year pay and longevity factor. C is a defined contribution-15% of pay into a 401k account, and B is a combination.
Originally Posted by
Twin Wasp
Those that got in early get "A" scale. Those of you that show up after a certain date get "B" scale. And "B" scale will never reach "A" scale.
Guys, why make this so difficult?
The easy explanation is: It's different pay for same work.
So, given the same fleet, seat, longevity, etc. A "B-scale" pilot would be paid less, or have fewer benefits, or both. B-scale is (was) a solution that in the early 80's somehow found union support and ratification to satisfy management's desire to cut costs. Fortunately it's a relic with only a hint existing today in the form of 1st year pay rates.
Retirement A, B, and C
plans are confused with
"scales".
As mentioned:
A Plan is a defined benefit plan (traditional pension).
B Plan is a defined contribution plan (employer/employee monthly contribution).
C Plan is typically an additional defined contribution plan in place due to extraordinary circumstances. For example at UAL a C Plan was created as partial compensation for the terminated A Plan.