Originally Posted by
pinseeker
Agree with the high-water mark comment completely. So, since the MEC has put out numbers on the variable benefit plan and even a calculator to show how well it can work, why isn't that the high-water mark? I guess you agree that we should expect less than what they put out in 2017-2018, since those numbers are now the high-water mark.
Are you daft?
When our NC first discussed the various options they considered 3+ years ago one of the selling points of a PSPP style plan was never needing to negotiate an increasing cap, ever again. Unlike the way UPS sidesteps the increased costs of a Traditional Pension with their FDA value, which has to be negotiated each and every time. And is perhaps a part of the reason that UPS tends to take 4-5 years to reach a new TA. (4 years to get to CBA2006-5 year contract amendable in 2011 took 5 years to get to CBA2016 - 5 year contract amendable in 2021. Their bridge deal is definitely a great deal for us, as they set the bar for pay)
In 2016, the year the model\numbers were based on, the starting pay was $69/72 and it's now $81/84. Pensionable earnings capped at $265k and it's now $290k...and you don't think the floor would be even higher for that outlier 40 YOS of Service guy people use to ridicule the models?
If Cheiron rebuilt the Modeler to update Investment performance from 1999-2020, well, that would also improve the numbers as well for the generic pilot.
Prior iteration had fewer years of actual performance to through into the mix.
I'd like to think that we'd all agree that the last 3 years of stock market performance has been pretty good, but this is APC and the interweb.