Originally Posted by DLax85

UPS Retirement

401K Matching: No

A/B Fund:

A Plan: 1% FAE or Flat dollar $4000 times YOS (Max 30 years) equals $120,000/year pension. Flat dollar amount increases to $4200 on 1/1/21

B Plan: 12%

Note: It’s the TOTAL retirement that matters. A fund + B fund

Our A max benefit ($130K) is currently better than their A max benefit ($120K). Their’s will be $126K on Jan 1, 2021. Inching closer to ours, but admittedly taking longer to earn (30 years vs 25 years)

However, their B Fund is 12% compared to our 8% now (9% in 2 years)

We could improve our TOTAL retirement by improving either or A or B fund (...or both)

The union isn’t looking at B fund improvements at all

Why??

A hybrid, diversified plan, which has both a gaurunteed portion and a pilot controlled, at risk portion, seems best

We don’t need to move to a model where both the A fund and B fund are at financial risk to the pilots - especially when that A fund risk wouldn’t be individually controlled.

Originally Posted by Fdxlag2

You forgot to add flat dollar turns into a pumpkin on 1/22.