Originally Posted by
DLax85
To increase the A fund benefit under our current formula you can only raise three variables:
The High 5 Cap - currently $260K
The multiplier - currently 2%
The total YOS - currently 25 yrs
We’re told the company refuses to raise the Cap, though I think they may except it indexed to a moderate metric within our pay system
Our multiplier already exceeds our closest competitor (UPS multiplier is 1%)
Our YOS is less (UPS max YOS is 30 years)
Many guys are already staying beyond age 60. I’ve heard the avg retirement age at FedEx is now 64.
Everyone has a right to make their own choice.
Allowing 1% multipliers for years 26-30, would increase max benefit from 50% to 55%, which is a 10% increase ($143K vs $130K)
Allowing 1% multipliers to 35 years, would increase max benefit to 60%, which is a 20% increase ($156K)
These would be immediate significant improvements which would help offset inflation worries for those retiring soon
This increase in a YOS would recognize the fact many pilots are already working longer (past 60), which gives FedEx more time to fund their retirement, while shortening their retirement payout
Combined with a slowly increased indexed cap, the A fund could increase in value across the spectrum in the longer term
Providing additional B bumps could help everyone as well, in the long term
I think the idea that wide-body, International Captains who make $400K per year are going to get a 50% income replacement gaurunteed during retirement is a bit far fetched
Is there a more moderate goal that will help alll of us?
An improvement in our “Total Retirement” can address many valid issues.
It doesn’t need be devisive or decrease pilot QOL vs pay flexibility
It doesn’t need to involve wholesale changes which increase investment risk
The whole point of all of this debate is to point out there are many innovative ways to improve our retirement which our leadership should explore fully, then present to the membership for discussion and feedback
This simply hasn’t been done.
To improve the total retirement package they can increase the cap on the YOS, increase the multiplier, increase the high five cap of 260, index the high five, cash over cap, increase the company b fund contribution, or a combination thereof. But the only one which incentivizes pilots to stay longer is increasing the YOS. Even if it only increases average longevity one year, isn’t that something we are trying not to incentivize? All the other choices, combined or not, would provide an immediate improvement to everyone without incentivizing increased longevity.