Originally Posted by
Noworkallplay
UPS only got flat dollar increase for guys retiring under the CBA extension. So no they didn't, they did band aid fix just like we have done.
.
We started with a 1% DBP, retroactive for 10 years when we started. By law, this required a substantial payment for funding. Retro is very expensive. Thus, unable to reach a 2% as FedEx. So ALPA FedEX pilots have a 2% "whole Life" DB and IPA UPS pilots have a 1% "Whole life" DB.
The workaround? A Flat dollar "Term insurance" plus up that extends beyond the amendable date and captures each group of older pilots. We have don this each successive CBA. Again on this next TA. I can assure you, no IPA pilot as they age will ratify a TA that does not continually increase the DB plan through the flat dollar increase of "term insurance" on top of the "whole life" DB plan.
You appear to think this is band aid approach is a failure. Not sure why ALPA FedEx does not consider this model for you all. It is all on UPS shoulders. I use a B plan for my own retirement risks. Even the "band aid " is absolutely known, even if go out on LTD. No different than current "whole life" DB.
You may think we are the dumb ones, but we have increased it every contract we have since its inception, and by its nature, it will be a required element of increase to pass any TA.
Cheers from a band aid guy.