Originally Posted by ATL7ER

In early 2006 NWA froze the pension plan and replaced it with a DC plan that rose to 8% over a few years. NWALPA proposed a targeting of that money to give more of it to junior pilots who had the biggest gap between their frozen DB amount and what they would have received if the DB plan was never frozen. The targeting plan was a complicated actuarial exercise that had as a goal getting everyone to a $$ amount at age 60 that, when added to their frozen monthly benefit, would approximate the value of a 50% FAE pension (DB had originally been 60% FAE). This plan was voted on and passed by the NWA pilot group.

Many senior pilots at the time had a frozen DB benefit that exceeded the 50% FAE goal. Under the targeting plan those pilots therefore received $0 monthly since they had already achieved the 50% goal. More junior pilots with a large gap between their frozen DB benefit and the 50% FAE (the plan used assumptions of normal career progression) received a targeted $$ amount semi-monthly into the NWA DC plan. The amount varied according to complex actuarial calculations based on age, age at date of hire, etc.

A group of senior pilots, with frozen pension amounts already greater than the agreed goal of 50% FAE sued NWA and ALPA claiming that this plan represented age discrimination and damages to their retirement. Lots of back and forth over a long time and it was all eventually dismissed.

The prevailing view of many: They already had their $$, but also wanted other pilot's $$.