Your Retirement is Under Attack!
FYI. From Facebook Jetflyers page. I thought it addressed some of the issues on this thread and would be of interest.
From Management´s 2010 Contract Opener:
"Discuss Retirement Plan structure in light of age change in the FTEPA and industry trends"
Translated to English, the above statement means that the company has, from the onset of this negotiating process, sought to save money by reducing or eliminating their 'A' plan obligations. I applaud and agree with those who have railed against management's initiatives to freeze our 'A' plan in favor of an over-weighted 'B' plan, if for no other reason that while an 'A' plan obligates the company to pay you a retirement for life, those primarily reliant upon 'B' plans obligate themselves to die before they run out of money.
Even as advocates for freezing our 'A' plan relate dated horror stories of passenger carrier pilots losing their 'A' plans, please note that our own 'A' plan is safer by virtue two major factors. First, we are the undisputed leader in a much more stable industry. Next, traditional (Defined Benefit) pensions have been made much safer by the 2006 Pension Protection Act (PPA), as explained here:
Pensions and Planning for Retirement Benefits The report of the Congressional Research Service can be read here:
http://worldatwork.org/waw/adimLink?id=15322.
The IRS limits the amount of total contributions to all of our defined contribution plans (B Plans, pre-tax and after-tax 401(K) contributions, and sick bank contributions) to $52,000 per year in 2014 (with an additional $5,500 per year for pilots over 50 for 401(k) plan contributions). Anything in excess becomes taxable income and you will be faced with Federal income tax and possibly state and local income taxes on this money. Incidentally, the current plans have a significant number of our pilots bumping up against this limit now.
A few A Plan facts:
o FedEx has the investment risk
o Our current contract´s A Plan provides approximately $130,000 per year until our death and then pays benefits to our spouse until their death. You cannot out live the benefit
o The money is in trust off of the property
o The money is managed by professional money managers
o The Pension Benefit Guaranty Corporation ("PBGC") guarantees a portion of benefits
Neither `A´ nor 'B' plans are risk free, so a mix of each is the wisest choice. As your Block 11 and Council 26 representative, I will absolutely protect your 'A' Plans!
If you have other questions, please contact me.
Michael Arcamuzi For Block 11
901-210-0701
[email protected]