Was the cost estimate mentioned above based on a “retroactive application” of increasing the current A fund salary cap for all on property who’s retroactive High 5 FAE was above $260K?

I’d imagine such a retroactive application would be quite expensive and I don’t believe the company would agree to it

I think any changes will be forward looking, and apply only to years going forward

Clearly the company can see that freezing the current A plan, and funding the new VB will be more expensive for them for any pilot who has maxed their High 5 and their 25 YOS

They will have to pay this cohort their “frozen” $130K benefit AND pay them additional VB benefits - at an additional 2% floor benefit for any additional YOS worked after the transition

They will be paying every pilot in this cohort a far greater amount then they’ve already accounted for under “retirement liabilities” on their balance sheet

Of course, this cohort would be the only group to ever enjoy such a benefit

Given, FedEx strives to keep the contract “cost neutral” where/how will these higher costs for this cohort be offset?

Why would FEDEX agree that higher costs for this cohort when we’re not in Section 6?

Would there be retirement savings elsewhere, amongst other cohorts?

Of course there would be. Anyone who hasn’t maxed their High 5 and hasn’t maxed their 25 YOS, would never be able to use the power/leverage of their currently accrued YOS.