Originally Posted by
kwri10s
IF you don't maximize then you will loose retirement money as your percentage of the total will be less. So your buddy will be taking some of your retirement money.
The 2% floor is not the minimum an individual pilot can return, it's the minimum return rate for the whole bucket (fund). Since every pilot will only be getting "their percentage" of the total, if you work less than the average pilot you will receive less than average. So if the average pilot works more and you only work BLG you will be receiving less pancakes than what you had projected in your forecasting model. It won't matter if you return 2% if your pancake is only 85% of a average share. You already lost 15% and you will not make that up.
If I understand you correctly, I don't think that's correct. Only 2 factors determine the number of pancakes a pilot is awarded at the of the year.
1) The pilot's annual earnings
2) The performance of the fund.
Annual Earnings Cap, Floor, and Hurdle Rate also come in to play in the calculation, but in no way does any pilot's earnings reduce any other pilot's retirement benefit.
I apologize in advance if I've misunderstood what you're saying.
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