Originally Posted by
FXLAX
What exactly is the ups model?
I think they have a 1% of high 5 X YOS max 30. That is what the PBGC is concerned with. They supplement with a buy up to get them close to parity with us. The buy up has an expiration date a couple of years after the contract becomes amendable, so it has to be renegotiated every contract. But since it expires no big PBGC penalty. Presumably cheaper than increasing the A Plan cap thus easier to make improvements every contract. When you heard all of the no voters huffing and puffing about how UPS got an A Plan improvement and we didn't, this is what they were talking about.
How it could work for us, A Plan stays the same but every pilot on the property gets an additional 100 a month x YOS in addition to the A Plan. This would be a separate account that would avoid the PBGC.