Originally Posted by
ThreeSides
This part of the health benefits seems like a can of worms favoring the company:
"If excise tax is unavoidable after mitigation is exhausted, plan costs will be reduced to remain below tax thresholds. Method to determine value of reduction is defined. Lost value to be returned to the pilots (in a tax efficient manner if possible)."
"Monthly contributions payable may not increase more than 10% per year."
If the contributions increase 10% per year, how much is that over the life of the contract?
There is no way of knowing, because we don't even know yet what the cost will be in 2017.
Current CBA -- the January, 2008, monthly cost for Buy-Up Plan for Pilot and Family was $190. The Company could raise the cost of monthly premiums in 2009 and 2010 by 10%, but no more than 15% in the two years combined. Thereafter (the current condition), The Company can raise the monthly premiums no more than 6% every year.
This new scheme starts with the pilot paying a percentage of the cost of health care - 18% in Jan 1, 2017, 19% in 2018, and 20% in 2020, and then limits the year over year increases to 10%.
Repeat:
NOW: 6% limit
NEW: Huge leap followed by 10% limit.
HUGE, huge concession.
And that's only the beginning.
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