Originally Posted by
StarClipper
Why is this even a discussion? A highly profitable company like FedEx and there's discussion of relieving them if their responsibilities the retirement plan. The discussion should be how can the pilot retirement plan be tied into managements retirement plan. Anything else about different option should not even be entertained. Stop giving the company ideas for next negotiation
The Pension Protection Act of 2006 had onerous funding requirements for all the major pension plans in the US. So congress allowed the following:
Airline Relief
. The PPA includes special rules for
commercial passenger airlines and airline catering
companies. Generally, plans sponsored by these entities
may elect to amortize any funding shortfalls over a ten year
period beginning in 2008.
So evidently FedEx owes our pension a couple billion dollars to meet this requirement in 2018. It's cheaper for the company to hand off the plan to ALPA and then allow ALPA to administer the plan outside of the PPA 2006 funding requirements. Thus the VAPP. FedEx continues to make monthly funding payments to ALPA but avoid the 2 billion cash payment due next year.
"Stop giving the company ideas for next negotiation". Haha, you're right. I should have known the company negotiators peruse this board on a daily basis for ideas on how to run their company. "Hey Fred, we're out of negotiating ideas... I guess we'll just give ALPA everything they've asked for. Fred- "Damnit no! Check the APC board for ideas on how to run this five billion dollar company. Those dumbsheet pilots are full of good ideas"