Originally Posted by
RedeyeAV8r
The $260K Cap isn't really The deal breaker. All that means is you can't make more than $260K from your pension.The issue is the Multiplier.
What if we changed the DB multiplier to 2.2% or 2.5% or 2.8% a year. A 2.2 yields 55% and 2.5% multiplier would yield 63% of 260K. A 2.8% would yield 70% of 260K. 143,000K, or 163.500 or 182K /yr pension would be an improvement without changing any of the caps.
ALPA and the Company raised the multiplier in 2006 to 2.2% for a Segregated group of Membership to make up for the loss of years for their 1% B plan bump which shows that this can be done. It should have been done in 2011. Yes, I know it is expensive, but it can be done.
Yes, the $260,000 should be the deal breaker. That was the IRS limit in 1998 when the max DB benefit was $130,000. The IRS max DB benefit in 2015 is $210,000 so the earning limit should be $420,000. The $260,000 limit limits only Pilot's pensions. Unlike all other airlines there is NO Pilot Pension Plan only the old FedEx Employee Retirement Plan that existed pre Union. Every ramper, station manager, and the rest are still in that plan if they chose that option. Every higher paid Executive is in the Parity Plan with no limits and I believe I read their pension is based on the best three years. If they earn $2,000,000 in pay and incentives their pension is $1,000,000 a year at age 60 if they have 25 years.