Yes - due to decreased rates of returns on bonds, it's much more difficult to fund any type of Defined Benefit plan. Interest rates have steadily fallen for about 15 years. These reduced rates of return are one reason DBs have falllen out of favor from a company perspective.

Under a Variable Benefit Plan which begins today, do you believe any increase in the cap above $260K will be "retroactive"?

...or will this new cap only count on future earnings?

To retroactively fund an increase would be extremely exspensive

Do you think years of service under the old plan, will transfer to the new Variable Benefit plan?

....or will Years of Service accrual start over again from zero?

Once again, to retroactively apply the YOS under our current A plan to a new Variable DB plan would be expensive

Dig down, and I think you will see the plans are funded very differently --- that's why the MEC believes the company may be interested

The Variable Plans are really defined contribution plans that pay out as a variable annuity when you retire

But unlike our current defined contribution plan (our B fund) each pilot can't control the investment allocation, thus each pilot can't dial up or dial down the risk based on their personal needs and assessment of the financial landscape

It's often said the company is willing to pay X dollars anytime we negotiate with them.

We don't negotiate X, rather we negotiate where X will be spent --- where it will be "spread around"

I'm not confident the X dollars spent on increasing our pension benefits will be spread around evenly

How many times have we agreed to increased benefits with the stipulation one must be 54 years or older on the date of signing?