Originally Posted by
KAFTKTA
As far as the company's liabilities go, Captains not doing any extra and having over 25-years at the company, are earning close to 50 cents on the dollar already. They'd receive 130k a year from the company just for retiring--so many are actually "earning" less then FO pay. With this career end DSA payout, the company is paying them close to what they actually cost.
Not trying to be devisive, just doing the math so please correct me if I'm wrong. Even If a 25-year captain makes 300k a year--they work until June 6th just to match their already earned pension. So......they told the company what they are worth.
The problem with your math is that if a Capt retires, yet still needs/wants to spend like he's making $260K/year...He needs to withdraw the other $130K/yr from his 401K or other sources.
So, yes, he could be earning $130K for doing nothing...But, he would be drawing down an extra $130K of his own money to make up for what he could have earned. Not spending your own money could be thought of earning that same amount.
You know...Like Ben said, "A penny saved, is a penny earned."