Originally Posted by
Coto Pilot
I have been told that ours is focusing on an annuity type of product that will bridge the gap between age 65 and 70 so that you can delay taking social security but still have money coming in.
A 5 year maturity of annuity of 200000 dollars
After the government just approved annuities for retirements
Will be 3700 per month for each pilot as they hit 65 years old
It’s 2.5% interest paid by the insurance company for 5 year to have your money, inflation basically. At 70 years old the pilot will be getting the same money if not more by delaying social security and will be on the same income.
If the average is 600 retirements per year the company will have to pay 600 X 200000 to an insurance company each year for each pilot hitting 65. Call it an exit bonus or paying for your sick time
That is 120 million per year and that is 3,75% out of their annual projected profits
Peanuts and fair for all however I would want to see the 16% to go to 18% as well and I can see the after merger pilots to vote for it.
By the way this will not affect the CAL pilots frozen fund or the PBGC recipients