Originally Posted by
FastBurner
Ding ding ding. The biggest consideration for any plan change is “who owns the interest rate risk?”
Yes, the 1999 retirees have felt their purchasing power reduce from 130,000 to 88,699 or 41,300 ish decline. So, something needs to change in that respect. For 2017 retirees, if they retired with 189,000 / yr that would match the 1999 purchasing power... But, what is “I guarantee you $10,833 / mo - forever” worth?
So, from the perspective of this probationary new hire, with 17 total years to be with the greatest airline - let the company assume the risk for the A plan. If cost of living adjustment is off the table - fine, simply increase B to 12% (with annual increases), cash over cap, and profit sharing for any amount over “X.” Just isn’t difficult.
This lays bare the core of this debate!
There is EXTREME value in a guaranteed income for life...even if it's not as much as we'd like or has not kept pace with inflation. Once it's gone, it's never coming back. Otherwise, wish us luck with a formula, some mythical shares and "ironclad" contract language to protect us.
I'll repeat what Fastburner says here....
If cost of living adjustment is off the table - fine, simply increase B to 12% (with annual increases), cash over cap, and profit sharing for any amount over “X.” Just isn’t difficult.
This should be our mantra!