Originally Posted by
kronan
Originally Posted by
TonyC
Originally Posted by
kronan
In that hypothetical future, it's a land of tough choices. Pension Benefits have been negotiated lower to prevent outright termination of a plan.
"—- (this is only $600 more “guaranteed” by floor vs current plan)"
The PSPP is only a modest improvement over the status quo for those closest to retirement. (Of which I will be one should it be incorporated into our next TA, and if that TA passes)
As proposed, it really only stops the inflationary bleeding that impacts our A plan each year.
The Variable Benefit will also be subject to inflation. Our "A" Plan benefit has not been hurt by inflation, it has been hurt by our failure to raise the FAE CAP at the same rate as we have raised hourly pay rates. A pilot close to retirement may not see ANY improvement from the PSPP over the current "A" plan with the current FAE Cap, but EVERYONE will see a SUBSTANTIAL improvement over the "status quo" by raising the FAE Cap.
Ask anybody nearing retirement what their ACTUAL High Five (not limited by $260,000) is today. If they have 25 years of service, divide that High Five by 2, and that's what they should get in retirement in return for their years of hard work making this Company not only possible, but fabulously successful. THAT's what they deserve, not some "modest improvement" over $130,000.
Inflation hasn’t hurt our pension, but inflation has hurt our Pension….is that your point?
No, that's not my point at all. A pilot who retired in 1999 with a $130,000 annual pension still receives, if living of course, an annual pension of $130,000. Inflation has reduced the spending power of that $130,000.
A pilot who retires in 2021 with a $130,000 has not been hurt by inflation. He has been hurt because we failed to raise the FAE Cap as our pay rates went up. The IRS Defined Benefit limit has increased at about the same rate as our hourly pay rates, but the FAE Cap has not moved at all. That's our fault, not inflation.
Originally Posted by
kronan
You’re making an assumption regarding what would happen. That an FAE would be retroactively applied should we succeed in adjusting our Traditional Pension to at least the Defined Benefit Limit…again, I’m assuming that you don’t think the $290k annual compensation limit is applicable to a Traditional A plan (yet somehow limits what can be used in a PSPP style Pension Plan)…
I'm making no such assumption, although it would be great if that were to be the case. And, again, you're correct in assuming I don't think the Defined Contribution Compensation Limit applies to a Defined Benefit Plan. It DOES apply to the Variable Benefit Plan because the IRS says so.
Originally Posted by
kronan
but rather the $230k Defined Benefit Limit which effectively means a $460k FAE
Which equates to 1332 hours of pay for an International WB Capt at $345.56.
Care to do the math for a 15-year wide-body Capt retiring in 1999? $260K FAE, $183.37/CH
[ANSWER: 1,417 hours of pay]
Your point?
Originally Posted by
kronan
IMO-an improvement to our FAE would be phased in over time, and likely effective for subsequent plan years. Our Retirement plan year runs June 1st-May 31st. So, IMO, a TA reached\passed for a November 2022 effective date would mean a Pension transition effective June 1st, 2023. And should we achieve a FAE improvement ceiling of $460k, result in a 4*$260k + 1*460k Pension in 2024 of $150k. (Assumption here is that the new FAE would have a max of $460k)
Would be great if our Pension Benefit jumped from $130k to $230k effective with our next CBA date, I just don’t think it’s likely.
You might be right. It might be immediate, or it might be phased in. It's ... to be negotiated.
Either way, I'm fine with it. In fact, if it's phased in to begin the month after I retire, I will be fine with it. It's still worth it to fix what has not been adjusted for 23 years. The money would be great, but the satisfaction of fixing it would be worth it for me.
Originally Posted by
kronan
So, since you’re nearing retirement TonyC, what would your ACTUAL High Five be?
Considerably north of $260,000.
Originally Posted by
kronan
Personally, I want MORE than I deserve. Unfortunately, we only receive what we Negotiate, not what we deserve.
Yes, FedEx can AFFORD to raise the FAE Cap to $460k. Just as FedEx could AFFORD to provide a Pension to everyone employed at FedEx which makes this Company possible and fabulously successful. But raising the FAE for us was a Line in The Sand for the Company in 2015, and eliminating the Pension for our fellow employees is something that FedEx just did.
I do NOT want more than I deserve. I have no moral ground upon which to stand if I ask for that. True, we'll only get what we negotiate. I have no compunction whatsoever asking for everything I deserve. The Company has made a lot of money off our backs, and they've saved a lot of money by not raising the FAE Cap a long time ago. It's time to make it right.
Originally Posted by
kronan
My apologies for the long post, not quite sure how APC will display this. Hopefully not too confusing, and that the Blue Text (my response) is easily readable.
Whew.
There. That's one way to spend a hotel confinement.
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