Originally Posted by
TED74
As someone who never in his life projected anything based on my future final average earnings, it’s probably easy for me to make this observation: FAE is an odd metric to use in a retirement annuity formula, is it not? I understand the effort to achieve fairness, but a model that ignores all but three years of one’s career to formulate an annuity paying out over three or four decades just doesn’t smell right. It won’t fix the past, but getting company DC to 18-20% seems to me to be the much fairer way to go to more accurately reflect one’s career contributions in retirement money.
The model they used had nothing to do with the last 3 years of a pilots career. They took the actual frozen value of each pilots DB plan. No one was anywhere near their last 3 years in the deadzoner range. The value was what you had earned and accrued at the time the plan was frozen.