Originally Posted by
max8222
...While I do not want to divide the crew force into different plans, maybe that is the way to go as one shoe does not fit everyones retirement portfolios.
Unfortunately, what's being proposed will divide the crew force in many ways.
The changes being proposed will not benefit all the same, and may in fact have a substantial negative impact on those in the current A plan who have yet to reach their "high five", but have a substantial number of years with the company and don't have a long time horizon left
Under the current A plan it doesn't matter when you get your "high 5", it just matters that you get it. Many pilots choose to upgrade at different times due to many personal reasons.
At least one of the plans being considered by the union will penalize pilots who don't upgrade at the earliest possible time. The proposed plans are really "defined contribution" plans from the company's perspective and that's why they like them.
Additionally, the changes being proposed will involve making a brand new, separate A plan. Not just tweaks to the current plan.
The new A plan will be structured, funded and managed differently, by a different plan administrator
The current A fund will be frozen with your current benefit
However, for all pilots who have yet to attain their high 5 they will be locked into this lower benefit with no opportunity to increase it
The years of service multipliers already earned in the current plan won't be applied to the new plan
One problem with moving to this new plan is that while it may increase the overall retirement for one pilot cohort, it can actually decrease the overall potential retirement benefit from other cohorts
While gains in the CBA are not always uniform, we shouldn't disadvantage one group just to advantage another.