Originally Posted by
FDX1
Yes, a pilot continues to accrue "Years of Service" until they hit mandatory retirement age but they do not continue to accrue any additional defined contribution money.
I don't know for sure about the Company contributions to the A Plan for a pilot on LTD...that's covered by the FASB which defines how and when the Company must contribute to that plan. That being said, I think they do need to contribute up until the time the pilot retires from the Company. The pilots earnings have nothing to do with the amount the Company contributes, so it doesn't matter if the pilot has earned their "high 5".
The reason I ask, is that I've heard a lot of different views on A & B plan. Some are in favor of an all B plan. But based on your answer, this could be another downside to an all B plan. If a pilot get sick, the company don't have to keep contributing to the B plan. Where as on the A plan, if a pilot get sick he will still get some form of retirement if he retires while out on LTD.