Originally Posted by
Rock
What we deserve isn't really definable because there are an infinite number of opinions and variables that make up that value.... Finally, our pension is not being reduced. Part of it isn't changing and the other part was increased.
...You could argue that the predicted value of our A plan will be less in the future, but you can't argue that the company is shrinking our pension.
Predicted rates of inflation are shrinking the potential value of our pension. What those rates will be, and whether they will be offset by the combined increase in our payrates and the eventual 2% increase in our B plan matching is unknown.
Side note, but did anyone else notice the predicted rate of inflation for 2015 is .1%?
Well, given there are an infinite number of opinions, let me take a shot at arguing our pension is being reduced:
Assuming a FAE based on 1,000 hrs a year & max WB (or NB) Capt pay rates, what's the ratio between the earned A fund pension payment & the FAE
...today?
...and someone retiring in 5 years under this TA?
...and beyond ? (assuming the $260K cap stays in place forever)
I'll head to bed while you run the numbers
(Note: Let's argue the pros & cons of the contract, but let's be genuine in our arguments and the associated math)
Now, I'll fully admit --- there is a B fund increase value that can make our overall retirement (A & B) equivalent, but I assure you these two 1% bumps are not it
It will take a B plan bump of 5-6% to keep the total retirement ratio constant.
Remember, the company's argument with the A plan is the new govt imposed accrual accounting methods for DB plans
That's not stopping them for paying more in B fund/DC plan which does not put any future liability on their books
It an important issue we should address now, not in 6 years