Thanks for the background Kronan -


Some quick barnapkin math questions:


"PSPP Pension Benefit would've been $5600 - (I come up with $5600 x 25yrs = $140k/pilot retiring this year)

At 200 pilots retiring that's $1.12M in benefits - (I come up with $140k x 200 = $28M this year in new retirement payouts)

At 300 pilots retiring, that's $1.68M in benefits - (I come up with $140k x 300 = $42M this year new retirement payouts)


$104M trust - 30% loss = $72M - $42 in benefits = trouble, especially if the market stays flat or loses value in the coming years!


Also where did the numbers for payroll and A fund contributions come from?


Take a look at the IRS 5500 for our A fund filed May 31 of last year. There are 187,000 participants. its funding is broken down by currently retired participants, active participants, and deceased participants whose beneficiaries are all receiving benefits and all groups' lifetime liabilities funded at well over 100%. Its market and actuarial values are roughly $2B and it is insured and reinsured in multiple ways through Prudential and the PBGC. Because of these facts, this plan actually qualifies as a pension and even if we close up shop, the PBGC insurance policy will pay out enough to us to keep the mortgage paid and the lights on in your house. The Variable plan will never have enough assets to securely cover lifetime liabilities and I'm skeptical if a private insurance company or in the worst case scenario PBGC would cover the plan because it is just a big pooled stock market gamble. Nothing I read or watched included any info on corporate bond investments or insurance swaps or any other actuarial-based investments that protect pension funds while earning required returns. If this isn't a big 401k style fund, we should see some numbers on yearly liabilities and actuarial tables and assumed interest rates to be funded at 100% for all participants. I only remember seeing NAV's and market returns like a would in a B fund. Is this even a pension??


https://www.efast.dol.gov/portal/app...execution=e2s1 (enter 621721435 in the EIN field)


Read this and you will sleep better knowing about our A fund and you will feel like we can ask for an increase in benefits and the Variable fund will give you literal nightmares. (Make sure you read the 5500s for the FedEx Employee's Corporate Pension Plan and not the FedEx Employees Corporate Savings Plan since that is the B Plan)


Thanks! DR K