Originally Posted by
Beans
Couldnt agree more with your statement!! Its like the DC plans and how everyone has fallin in love with the 14-16% that most have meow. Ask me what that 16% is worth when the market turns again. We forget that this economical boom for the airlines wont last forever. This is a feast or famine industry period and it will always be because its so tied to the small economical ups and downs.
Ask a pilot that had a multimillion dollar defined "benefit" what it was worth after being shed when handed over to the PBGC?
Would you rather have the money handed over to you/your investment account or simply "promised" to be waiting there for you when you retire?
Originally Posted by
svergin
The entire point of the 16% contribution is that if you make $265k the company pays you an additional $42k tax-free that goes into an account you can invest any way you want. So you think its all going to tank? The put it in a money market. I look at it as extra pay. So my hourly rate is $265 but I'm actually making $307 because that $42 extra dollars per hour is real money. I hope to leave at 60 or earlier just because of the 16% company contribution.
Right.
But keep in mind, it doesn't matter if it was extracted via bankruptcy or just concession (AA/CAL/AS) after 9/11, it was the LCC pay rates that the legacies were leveraged DOWN in relation to.