Originally Posted by
DR K
How in the hell will the Variable Plan satisfy actuarial requirements of a DB plan if it only has 3 years of retirement payouts in the trust? Could it be that this thing is not a DB plan at all and will not be supported by any insurance policies for beneficiary pensions or even worse will evaporate if the company goes under unlike our current actual DB plan? Did the brochures and YouTube videos talk about actuarial funding requirements or just flash the big dollar sign checks that we pilots drool over?
1st, you have to be using my WAG of the Benefits required if each and every pilot was earning the DC limit of $5600 last year, which absolutely isn't true. Just a boundary for comparison. Reality is much lower as there's a significant chunk of pilots who earned between 25-80% of that pension benefit. So, already that initial contribution into the notional VB lasts much longer.
That notional 100+M will last a long time if FedEx had terminated it during this market crash.
VB plan is not, never was, a Money Pension Purchase Plan.
It is a modified Cash Balance Pension Plan, same rules, different funding requirements.
https://www.investopedia.com/terms/c...ensionplan.asp