Originally Posted by
pony172
Merely an interested UPS observer here guys. Our B Plan contributions are 12% but the IRS limits that to $34,200 for 2020. That means at $285,000 you hit the max contribution. A lot of our FO's will hit this number this year and for Cpt's the contribution will be mostly in the 7-9% range. I like your cash over cap ideas like Delta.
Also, our pension numbers went up in our contract extension ratified in March. $4400 per year of service up to 30 years for a Cpt. We also gained a VEBA plan that puts $1 for every credit hour into a tax free account for health care costs that you can use starting at age 60. That seems to be the best way to gain some extra tax free cash that will be useable in retirement. I know our EB talks with your MEC frequently on a variety of issues. We're watching this with interest.
I have to say I’m intrigued with the flat dollar plan. I’d like to know more about it. As you know, it’s been difficult for us to see improved A plan gains, but you guys have been able to get nice improvements. Your 30 year Capt plan pays more than our max pension now (25 year).
I’m told that flat dollar somehow lowers pension liability for the company. It might be a possibility for us. I’ve heard the big negative is that it has to be re-negotiated every contract. To me, that’s not a big deal. We negotiate pay and benefits every contract, so I just don’t see why it’s a show stopper. I think this could be a viable, achievable plan. It’s a very simple plan...