Originally Posted by
LeineLodge
^^^this
Decades of future market/industry risk make it impossible to say that today’s “young” pilots are getting a better deal with DC.
Attempting to make the 2 sides equal (based on a plethora of unprovable assumptions) is begging for each side to retract to their corner, and puts us right where the company wants us: divided.
The only way I see widespread support for an alternative plan is:
1. It is available to ALL pilots. Attempting to pick favored, or most damaged segments, of the pilot group is bound for continued discord like we’re seeing in this thread’s small microcosm or the overall group
And/Or
2. Provide 2 options. Option A is a straight increase of DC, while option B could be some hybrid annuity monster (or whatever it is that you guys are so hung up on getting). Everyone gets to pick which door they want to walk through, and forever hold their peas. Basically put your money where your mouth is ala DPMA - once a career election.
I don’t want anything to do with a plan that stores a benefit with the company instead of my own name. For that type of risk, the expected return should be high. I don’t see an annuity or DB being able to provide anything reasonably close to make the risk worth the promised reward.
Just show us the DC CASH, let us pay the taxes, and invest it how we see fit. No promises to be broken later.
This is the problem. Options will not work. Say for example everyone over 60 chooses the DB vice an increased DC - not enough coin to pay for a DB. Of course a 64 year old will forgo a DC increase or even his total DC for a DB - he is only losing 1 years worth of DC for many years of DB.
The only way to pay for a straight DB/hybrid annuity monster is to secure a long term funding source not a few guys giving up a few years worth of DC.
FWIW I did see one suggested plan on Chit Chat that did have potential - it gave guys an option and would only pay out a nominal amount for 5 years - a bridge to 70 to let guys increase their PGBC and SS payouts by deferring them. Of course this plan was promptly attacked on all sides. The more outspoken older guys thought it was too little - so they will hold out for a more lucrative plan and end up with nothing. The younger guys didn't seem to like it either - although it was voluntary and didn't seem like it would affect them negatively at all.
Bottom line - A plan to rob Peter to pay Paul will probably never pass the Pilot group. And if fairness is the issue how do we compensate the guys already retired? They have no 401K to contribute?
IMHO we are better off with improvements we all benefit from: Retiree medical, HSA being topped off, increased DC etc.
Scoop