Originally Posted by
Nugget#69
Won't work. FedEx pilots die early and often. Those that survive to a decent age make a ton but are fewer than you think.
No way the company will trade the good deal they have on the A plan with all the early deaths for an expense buyout.
Sorry
Gunter, you hit the nail on the head as to why it will not work. Most people think they are going to live to be 90, but probably only about half make it to 75. Therefore, all the pilots would want a buy-out equal to the payout assuming they lived to be 90. However the company knows they only have to pay out to the average age which is quite a bit lower. I'm sure that dollar figure is a lot less than most people think. Especially when you consider the investment value of the money set aside.
Makes sense but does anyone have any hard data as to how many guys are actually retired and rcving the A plan, how many have died, average longevity, average payout? It would seem that ALPA could compile this info w/o too much trouble. When I emailed the R&I Chairman two times early this year and a R&I staffer at ALPA I got the typical response - nothing.