Originally Posted by
kronan
True, I’m assuming that the DC limit of $290,000 isn’t raised over the next few years.
I’m assuming that the negotiated accumulation rate is 2%, instead of a higher number like 2.2% (or even 2.5%)
I’m assuming the YOS cap is negotiated to reflect the reality that many/majority of FedEx pilots are continuing beyond 25 YOS if they can.
And I’m assuming we’d all agree that $290,000 times 2% = $5,800.
The only part of that I will agree with is 2% of $290,000 is $5800. The rest is just a guess.
Why not assume that the company draws a line in the sand and says if the plan is so good, it doesn't need a floor.
Why not assume that the company says ok, but the mandatory retirement age is 5 years older now, so you only get 1.67% for each year of service.
Why not assume that the company bases it on earnings less than the defined contribution limits. As you say, this isn't a defined contribution plan, so those limits don't many anything in regards to this plan.
Why not assume that the company says that our current plan should be the floor limit.
There are so many things that need to be negotiated in this plan. Tuck says that we will never be released to self help. The company drew one line in the sand and the NC and MEC caved. Why shouldn't we expect the same this time.
If we shouldn't expect the same, then why not improve the current FAE limit. The defined benefit limit is $230K this year. Why not ask for that. That limit was in our very first contract.
The MEC and NC were pushing the Kool-Aid hard with the VB plan. They added a lot of sugar and fancy colors to make it look and taste good, but in the end, it really isn't good for you.