Originally Posted by DLax85

Brother Tuck -

I have yet to attend a FOCUS meeting. There have been ZERO scheduled the nights I'm hub turning.

I've read all the Retirement FAQs. I know all the questions submitted have not been answered and posted.

Some simple ones...

What's the assumed pilot progression timeline?

What are the historical returns used within the modeler?

The specific equities index, the specific bond index, the assumed asset allocation, and the actual historical returns for each of these.

How do the results change if an investment earnings cap (notionally 10% in the first video) is applied to build the stabilization fund?

Please publish.

Are those valid questions? ...or do you think that's just stirring the pot?

I'm wondering if you understand how the company calculates the amount of money they must set aside to fund a given benefit level at a specific age -- ie. $130K at age 65 for the expected life of a pilot.

They utilize an Expected Return On Assets to estimate growth of their contributions, and a Discount Rate to discount a benefit liability over the expected life of a retiree.

If the VB actually guarantees a "floor benefit based on 2%" accrual, the company will not be assured they can ONLY contribute a fix percentage of salary.

That will only be true without a truly guaranteed floor benefit.

Please read many of my earlier posts.

If the company only has to contribute a fixed percentage of total payroll each year, then that's just like a BIG GROUP B fund --- except each pilot doesn't control their share, like our current B Plan. It's like a B fund, with an annuity payout at the end.

I do think the VB plan is a bad idea for the many reasons I state.

I do think improving our Total Retirement should be the goal (...I don't think anyone would disagree with that). Thus, its a valid question to ask is there a better path?

A way to improve both our current A fund and our B fund?

If so, let's model it.

Look back at my posts during contract negotiations. There was no talk then of indexing the Cap to IRS limits. No one in the union was publicly talking about that. The Caps being discussed were much higher.

When the union said the A fund Cap simply couldn't be raised, I suggested we should vote "No" and look for increases to the B fund up to 12-13%. We should have held out for more than just the two B fund bumps to 8%...then 9%.

I'm now only suggesting an indexed Cap because, its a new idea, and it would only yield a modest 5.7% increase, which I think the union can afford. I don't think we should have to switch to a VB plan and Career Average Earnings to get it. Those two concessions are just too big.

I'm unsure, if during negotiations, I was advocating increased 1% YOS multipliers for 5 more years --- but I believe that's an avenue which should be explored now because most pilots are working 4-5 years longer.

Now back to FOCUS group opportunities.

Can we have one EVERY Wed night in MEM and see how many guys sign up? I'll assume midweek, nights, in our largest hub would be the most convenient for the pilot group. That's the objective, right?

It seemed to me some of the day-turn offerings went unfilled. Hmmm.

Can we have another on-line survey in which everyone can participate (not random phone call poll)?

Is asking specific questions....and asking for alternative options 2 and 3 to be explored an unreasonable request for my 1.9% dues?

We're all owners/customer in our Association, correct?

In Unity and Transparency,

DLax