Originally Posted by
Scoop
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 B. 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
Agree with the we are all better off with improvements we all benefit from. The medical/HSA doesn’t do this for the many on our list with tricare or for those who utilize spouse insurance. Can agree on increasing DC. Or just more $$ we all can spend instead of dividing us via special interests. QOL items, vacation, training pay are areas for improvement nearly everyone can get onboard for. And so is money. Each pilot can prioritize his/her money however they want to spend, save or invest.