Originally Posted by
kronan
Have to laugh at this one.
Because you know, improving the FAE calculation does absolutely nothing for the 25+ year crowd.
Switching over to the Big B Cash over Cap B plan I hear a few folks saying we should pursue does absolutely nothing for the 25+ year crowd (reality is that a Big B plan doesn't come close to matching the value of our current Mix)
;-)
We're not Cashing in or trading one plan for another.
Just trying to come up with a different way to calculate future benefits.
Podcast outlined a change\improvement previously undiscussed, and not modeled in any way by "The Modeler". But one in which those folks who choose Seniority over $$, choose to work 70% of their line, would still wind up with the Same FAE*2% calculation we have now.
IOW-(S) VBP has a new line inserted into how your Benefits would be calculated.
We have the Pension Benefit being the Greater of the Value of our Pancakes * asset value (the secret sauce of Market returns in excess of 5%) OR the Accumulated Floor benefit (2% of W2 compensation added up year by year) OR The greater of our (S) VBP + Frozen A plan compensation as compared with the YOS*FAE*2%.
Again, comments made that there's NO way such a lookback provision is affordable and Mgt Will Never agree to it.
Seems diametrically opposed to the comments that the (S) VBP is a HUUUUUGGGGE give away and Mgt is salivating as they contemplate the savings to be gained.
Which then goes onto the We Need to Fix our current A plan by upping the FAE cap and YOS.
I’m sort of having a problem understanding your point here.
I’m for higher FAE or higher multiplier, significantly increased B plan, and/or a real profit sharing plan. The Variable plan is a turd that most people don’t want. If we’re still paying Blitzstein and Cheiron, let’s stop now.
I still want to know the cost to change the high 5 from 260k to 300-320k. If the numbers are truly impossible, let’s see them and move on to other tried and true ideas.