Originally Posted by
DangaZone
As an outsider, I certainly appreciate Albie's well-thought out opinions. He had to know he was opening himself up to criticism from those who would disagree, yet he laid out *his* reasoning for everyone to see and dissect.
Also, as an outsider, it is disappointing to see some FedEx pilots advocating for what essentially would be a B-scale retirement plan for newhires in order to bolster the benefit of pilots already on property. FedEx might be the only ALPA carrier accepting newhires into an defined benefit plan but FedEx also didn't take the same trip through bankruptcy that others did, and has both shown and forecast continual growth in both revenue and income.
It would be educational if someone could show how big a "cash over cap" DC fund a youngish (say, 35) newhire would need in order to exceed the retirement income of joint DB/DC offered in the current TA.
Tell me what the pay rates will be in 2040 and Ill answer your question. As a guess I would say our A Plan right now replaces about 40% of the average retirees income. Ten years ago it was probablly half. At best, without negotiating, it will be a bout 20% of your 35 year old new hire's replacement income, likely less. That also sounds like like a B scale retirement to me.