Originally Posted by
BlackKnight
Here's a few things I know so far, after reviewing everything on the FDX ALPA website and attending a briefing from PM and KB recently.
1. No one can TAKE your A plan.
2. The VB plan doesn't do anything to the DC plan.
3. The VB plan will have a 50% buffer to absorb severe market downturns. In other words, the stock market would have to decrease in aggregate value 50% for us not to receive 100% payments.
4. We would receive two checks in retirement- your vested A plan earnings and your VB earnings.
The current max value of the A plan is $89,000/yr in 2017 dollars. In 20 years it'll be worth 2/3 of that, or roughly $60,000. Less than half the original purchasing power.
Our NC and R&I committee (including arguably the smartest guy in ALPA on R&I- KB) has received advice from an industry expert and 3 actuary companies have studied the numbers to arrive at the VB plan. It'll be difficult for any of us to do that kind of research to provide viable options. Just saying.
1. Unfortunately, I don’t agree with your first point. It’s become pretty clear that keeping “your/our” A plan will be a collective decision, not an individual decision - thus somebody can take your/our/my current A plan (...to include the Years of Service a pilot has accrued)
2. Correct, the VB doesn’t do anything to the DC plan. Though our total retirement is based on both. Improving our total retirement plan can involve improving the DC plan as well
3. Please state source to this claim, and provide link to the video, Power point presentation or association document which makes this claim. It appears to be common knowledge that if a VB return does not meet the plans “hurdle rate” then the benefit will adjust downward. Even a positive return that fails to meet the hurdle rate causes a downward adjustment. The idea the fund can drop 49% without reducing the paid benefits is.....???
4. Yes - however, without a transfer/or credit of “Years of Service” between the two plans, those who haven’t maximized their “high 5” won’t be getting the maximum benefit from the current A plan or the future VB plan.
KB is very smart and very well respected, however, that should not preclude other ideas and concepts from coming forward.
It’s not unreasonable for dues paying association members to expect our association to diligently research, and publicly present, other reasonable options which work to increase total retirement benefits.
These other options may have less risk, increased individual control, without disadvantaging certain pilot cohorts.
Let’s keep the ideas coming - and critically examine each.