Originally Posted by
Stan446
VEBA was, if I remember right, basically a union due to cover the cobra payments for guys who had to retire at 60 and cover them until medicare kicked in. We were paying for guys who had a career at fedex knowing that they would retire at 60. Why should we have been covering Cobra payments for guys who should have planned for an age 60 retirement? Add to that the last contract only pays a bonus to guys who were 54 at the time of signing who give a years notice of retirement. And by bonus, I believe there was another $40K paid to guys on top of the full sick bank bonus.
From what I understand, our VEBA is an account funded by FedEx, tax free, for the purposes of reimbursing us for part of our Medicare costs, post age-65. Personally, I don’t see this as a senior versus junior issue. As a junior person, I look forward to being able to benefit from this just like I do for the pension.
Even if it’s as you describe, I still wouldn’t have a problem with it. If it incentivized pilots retiring before 65, I feel it’s a good thing. My seniority progression will accelerate and I may be able to use that benefit if I choose to retire early as well.