Originally Posted by
BoilerUP
Honestly, I am not sure.
I do know there are IRS and ERISA differences between a FAE and FDA benefit, and the FDA has to be renegotiated every CBA because of that.
It doesn't really matter. PBGC insurance is a huge haircut regardless.
If UPS went under and surrendered their Pension trust, 25 year UPS Capt's 105k Pension (I'm assuming the FDA wins pretty much every Pension calculation) would be reduced to:
60-$43.7/39.4k
61-$48.4/43.6
62-$53.2/47.9
63-$57.9/52.1
64-$62.6/56.4
65-$67.3/60.6
Straight life\50% Joint life.
Where it likely Does matter, is in the cost to provide it if there truly are significant differences in ERISA rules\PBGC Premiums. I have read conjecture that there isn't as big of an impact in a market downturn with a FDA override, since it's a contract to contract figure that could-in theory-be eliminated in the next contract.