Originally Posted by
ShutUpNFly
"Pay Rate Comparison" presentations are only a small portion of an entire contract. Compare the ENTIRE new and improved Delta TA to the new UPS contract in relation to the Defined Benefit Plan (A Fund) paying $126K per year in retirement, 12% B Fund, no PBS scheduling BS, the new OCV vacation rules where a 2 week vacation now results in a guaranteed month off, optional annual 72 hour sick bank cash out, etc etc.
I'd like to see the profitable people movers make a strong push for reinstatement of a well-deserved A Plan vs. eyeing a profit sharing check. Spoke with a Schwab rep the other day to get the facts.... to guarantee our A Plan number of $126K per year for life after retiring at age 65 I'd have to write them a $2.53M check on the day I retired. That's a lot of profit sharing checks. Food for thought.
Vacation I fully agree. Sick leave I am glad to have 270 hrs a year if I need it. Re the pension vs our DC+PS. Dunno about Schwab. I ran numbers thru Vanguard (100,000 to buy 553/month) and came up with $1.898M to buy an age 65 male single live annuity of $126K. Over 30 years it would take 2280.54 month(27,366,49yr) at 5% to produce that lump sum. We get 4% more DC than UPS and Pensionable Pro Sharing. With an average 10% PS that is 15.6% of income you could contribute to retirement savings. Over time is that worth more than $27K a year? I think easily so. In addition it is up front money in your name and not a promise from the corporation. DALPA put out a pretty thorough letter describing the problems in reinstating our A plan. Specifically it may not even be possible and may take a long time to even find out. I'll offer my personal perspective. I turned 52 the month DAL's pension was canned. I do not want a new DB. Newbies are forewarned: we were not. The DB was presented to us as a guarantee and lots of DL, USAir, UAL pilots treated it as such. They saved minimally and lived the dream till it became their nightmare. DB plans can be terminated, future accumulations can be changed or frozen. You can have what you've already earned taken away or limited by arcane rules. With DC and personal savings it is your money. Anyone smart enough to fly a jet can manage their own finances. It is all about planning and discipline. Your retirement=your money. DB=NoWay. OFG