Originally Posted by
Denny Crane
Wrong on so many accounts. Do you know how ERISA law works? A DB can only be terminated if it meets the criteria for termination. THAT is a pretty big hurdle. You do know that American tried (while in bankruptcy) and was denied.
An increase in DC helps all pilots but helps younger pilots more...as long as you get yours right?
A DB helps all pilots too. If a DB is terminated, you do realize it gets turned over to the PBGC. It doesn't just disappear. You just have to wait longer to get yours and with a millennial attitude like yours it's "screw the old guys." See I can name call and pigeon hole too. Why don't you try and a make a cogent argument without the drama.
Denny
American management was quite surprised when the PBGC actually said no. During the years when USAir, UAL and DAL lost their retirements the head of the PBGC was quite receptive to accepting almost any plan presented. In 2008 we had a new administration come in and with that new Admin came a new head of the PBGC, as the PBGC is hybrid government/corporate agency. When AMR filed with a lot of cash the new head of PBGC said, “prove you can’t reorganize with with your pension obligations.” Here we are today. Politics matter.
You are correct that if we had a new qualified plan that was someday terminated it would go to the PBGC. BUT, and this is a big *******ing BUT, once an individual has reached the PBGC max from one (or more) plan(s), that individual get ZERO more dollars from the PBGC regardless of how many more plans are turned over to them and what that individual would be owed. This is one of the reasons this “older”pilot does not want a new DB plan.