Originally Posted by
BobZ
anecdotal evidence has zero pilots I have come across wanting anything to do with a pension. Am I missing something or what?
how is this even a topic of discussion in the amendment process?
A 32 year old new hire is likely to come aboard with at least some self directed seed money. Even with zero, current benefit at 16% with a modest career average annual salary assumption constant of $225K yields $2M @ 3% ROI.
If this same pilot kicks in the allowable employee contribution its $3M. At 5% its $4.5M.
And unless this same pilots lives paycheck to paycheck his entire career, dropping it all at a casino......there will probably be another $2-4M of a personal asset base at the time of retirement.
And somehow trusting in some faceless future management team is a better idea? Heres a suggestion, better work on increasing the 16% number, and then the cap on contributions for those who desire to allocate the additional to the self directed account.
Bob,
I have also heard guys come up with some very low FAE equivalents for new hires. Some guys are actually trying to convince them that we need to return to a DB and that they will only have about 30% equivalent FAE in retirement. It seems to me most new hires are perfectly capable of planning for their financial future.
This does not mean that many deadzoners were not harmed, plenty were, but any guy on property today had about 15 years at a minimum to plan for retirement. Our mistake was approving LOA 51 which stipulated we would not contest the DB termination - at that point it was game over for our DB.
Yes the market will go up and down but I believe even with conservative estimates any 35 year old will be able to much better than 30% FAE equivalent.
Scoop