We are big boys - show us the math!!
Speak specifically with facts?
Yes - DB Plan Return on Assets projections have been going down for years, making such plans more expensive
Investment return formulas are based on geometric growth, not simple linear growth
However, it’s also true pilots are retiring later.
How much later? They have the exact data - share it!
The # of payouts during retirement has been reduced.
Show us the exact mortality table assumptions FedEx actuaries use
If anything, they are less than the Federal Unisex tables because our pilot group is less than 10% females. Under federal law they can use different tables when they can show the covered work group has specific demographics
FedEx knows the actual mortality of All FedEx pilots who have retired and passed away. I think ALPA may have this data as well
Share it!
My guess (looking around the AOC), on average, we die earlier.
The health of our A plan is public knowledge and sent to every pilot every year
Yes - in 2006, our plan was underfunded
In 2016 - it was funded over 100%. They borrowed some money to plus up the plan. Public knowledge. But, that was prudent due to lowest interest rates and how well our earnings and our stock has been performing.
While I don’t believe the company will agree to raise $260K cap to current IRS limits, I believe there is an opportunity for an increase.
The new corporate tax breaks will significantly increase after-tax profits.
If you think pilots fly extra and fly longer now, just wait until the new Variable Benefit formula is released.
Remember “Every $ and Every Year Counts”
Say goodbye to the “High 5” concept
We will end up working harder and longer for the same benefit - and then be responsible for the investment risk as well