Originally Posted by
TOGA LK
Timbo, it would be tough to contrast 2004 to now because the DB plan was underfunded and then it was hit by early retirements. To give you an idea I read a financial statement from AA and in one quarter they were dumping 300-500 million into the DB plan under Arpey. Granted that was likely all employees but I'd bet pilots were half of that. I bet the DB plan alone cost $100/hr to run per pilot. People tend to WAY under estimate the financial investment to generate six figures of income during retirement, even during downturns.
I agree the company doesn't care, it is important for pilots lurking this thread, even at other airlines, to have an idea.
I agree 100%. And then don't forget the "uncertainty factor" in that the DB plan was pretty much a guaranteed income, regardless of what the stock market did. Now, your retirement money is fully at risk to the whims of the markets.
Think 2008 can't happen again?
Count on it!