Originally Posted by
BlackKnight
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.
I would like to see that in writing somewhere. Based on that statement, if it costs the company 6 billion dollars to ensure a payout of $130K for life for every pilot, they are going to contribute 9 billion dollars
That would be a 50% buffer.
Also, if there was in fact a 50% downturn, that 9 billion would be 4.5 billion, or 25% lower than the 6 billion dollar amount required to make full payouts.
If that is what the smartest guy in the union is selling, we have a problem.