Originally Posted by
CompetentFool
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"
You would be very naive if you think that no body from management pay attention to anything said on here or any other public forum. If management had a public forum, we all would be lurking too. With that said, there still isn't any justification to hand over the pension. Let them cough up that 2 billion dollars if that's what it takes.