Old 11-14-2017, 04:22 AM
  #10  
mempurpleflyer
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Joined APC: Mar 2017
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Originally Posted by BlackKnight View Post
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.
As to Point 3, I am skeptical. Wow, this VB concept must be the greatest thing since sliced bread. Why are all companies not doing this? Sounds like a win-win for everyone...saves companies billions of dollars and it would take a 50% decrease in the buffer for you to lose any benefit. Hmmm.

Have you heard the saying..."If something seems to good to be true it probably is?" Or how about, "there ain't no free lunch"?

There will be a cost associated with this new plan and it appears that it is in the form of risk. No doubt it is a win for the company...less risk and billions saved in required governmental funding requirements. For us, there is the potential to do better than $130k, but with an increased associated risk.

I like the risk sharing concept...it is what we have now. I accept 100% of the risk for my B Plan and the company accepts 100% of the risk for my A Plan.
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