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Old 10-12-2018, 02:48 PM
  #8  
NewOldGuy
Gets Weekends Off
 
Joined APC: Jan 2016
Position: B767 FO
Posts: 195
Default Retirement Plan Negotiations?

Originally Posted by kronan View Post
The A plan didn't lose a dime? Really, that's what you think?



I'm thinking the A plan assets lost a pretty hefty percentage (S&P 4% this week, Nasdaq 3.7%)

YTD on SPX (500 Index fund) is still at 3.5% after the losses of this week.



Pension Benefit, however, unchanged.

How this week would impact on the VB Benefit, hard to say. Will say that as negotiated we'd receive the Higher of Market Returns or the 2% Floor.



And, if negotiated as desired, every single pilot has a 260 FAE x YOS. (Soft Freeze)


Kronan,
The difference is the loss on the A Plan’s funds yesterday are the Company’s problem. They have to make that up. The loss on the VB plan comes from OUR pockets, hence the reason for the floor AND the hurdle rate. They take the money from the VB plans profits in excess of 5% (current proposed hurdle rate) to guarantee the 2% in down years. What happens at times when the VB has an extended period of less than 5%? In other words the funds aren’t there? Then that money comes from the capital in the fund and this lowers investments and lowers compound growth. It’s a pyramid scheme and we’re doing it to ourself. Robbing Peter to pay Paul except in this case we are Peter!


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