Originally Posted by
Tuck
My question that has never been answered (kudos to Tony for putting out some great leg work in attempting to back in 2013 though), is why did ALPA think that a bill changing the mandatory retirement age would somehow protect the CBA written defined benefit guarantees or that they needed protection? The two have nothing to do with each other and the rationale that Tony presents here does nothing to make one thing otherwise.
Here is the guarantee that the ALPA supported age 65 bill that Tony writes from his earlier post (see link above) that is pertinent:
"Ensuring that, under a defined benefit retirement plan, a change to the Age 60 Rule will not reduce a participant’s or beneficiary’s accrued benefit nor reduce a benefit to which a participant or beneficiary would have been entitled without enactment of such a change to the Rule."
Here is the only verbiage I can find from the law in question HR 4343 Fair Treatment of Pilots
https://www.google.com/url?sa=t&rct=...ZLyLRw&cad=rja that even mentions something close to what he's talking about
"‘‘(f) AMENDMENTS TO LABOR AGREEMENTS AND BENEFIT
PLANS.—
Any amendment to a labor agreement or
benefit plan
of an air carrier that is required to conform with the requirements
of this section or a regulation issued to carry out this section,
and is applicable to pilots represented for collective bargaining,
shall be made by agreement of the air carrier and the designated
bargaining representative of the pilots of the air carrier."
I'm not sure how that protects the defined benefit plans since no changes to any DB plan by any carrier would be required in order to conform with this law.
I might be wrong and generally don't want to take on Tony with his knowledge and memory but I'm not seeing any connection whatsoever here.
Originally Posted by
Tuck
Tony - there is absolutely nothing in the law that passed that offers the protection you discuss. Nothing. The actual law is very short - I offered a current link to it. Find me the part that provides the protections you speak of. I know what you have said it provides but show me what part of the law speaks to it. I may have missed it but I tried to post the only section I could find that was even close and it says absolutely nothing close to what you are saying.
Tuck,
I've highlighted some phrases in the excerpt of the law you posted. Put them together and you form this sentence:
"Any amendment to a benefit plan of an air carrier shall be made by agreement of the air carrier and the designated bargaining representative of the pilots of the air carrier."
And here again is the third bullet point of ALPA's priorities as defined in the Executive Board Resolution to drop opposition to the regulated age change:
"Ensuring that, under a defined benefit retirement plan, a change to the Age 60 Rule will not reduce a participant’s or beneficiary’s accrued benefit nor reduce a benefit to which a participant or beneficiary would have been entitled without enactment of such a change to the Rule."
To fully appreciate the direction the conversation was taking and the possibility of disadvantageous outcomes, it is instructive to look not just at the language of the bill that immediately preceded the one than became law, but also the others that came before. I tried to paint that picture in the post from 2013 I referenced. What you'll notice is the frequent use of the word "retirement" when referring to the regulated age. Such imprecise language is to be expected when lawmakers with no subject matter expertise attempt to set aviation rules by legislation. Had the final bill contained such language, it would have been no stretch for FedEx to claim that due to change in law, our Defined Benefit plan had to be changed to adopt Age 65 as the Normal Retirement Age. The repercussions would have been numerous, and none of them to our advantage. I doubt we would have been offered some sort of non-qualified plan to fill the gap in benefits we would have lost.
The language in the final bill, the bill with language that has ALPA's fingerprints all over it, explicitly prohibited such action.
That's as clear as I can make it.
.