Originally Posted by
RockyBoy
They have a frozen pension that I believe will give them about 50 FAE. Not quite sure about the specifics, but they do have a frozen pension. Any new guys just get the defined contribution stuff.
Let me start by saying I am not and expert on this, but here goes.
NWA pilots have a frozen pension, that part is correct. The rest is not. In BK the NWA plan was frozen. That means no more money goes in. And when you retire you will get what you had in there the day it was frozen. They then went to a DC plan for all pilots after BK.
Before BK it was 60 FAE. After BK it was lowered to 50 FAE. But now the hard part. With the new DC plan if you have >50 FAE already (expected $ from frozen pension). You get no $ from the new DC plan. Pilots with <50 FAE will get some $. And that varies with so many factors it is impossible to explain. But they tried to get as many pilots as close to 50 FAE as possible.
As for me, I will get $126./mo. in 20 years from my frozen pension. And as of now it looks like 37 FAE from my DC. (Not very good)
I'm not sure about this but it what I have been told. The Delta pilots pension was terminated. So they lost most of it. But they will get money from the PGC or whatever it is called. And they also got $650M note from Delta to make up some of the loss. What that works out to I don't know.
So the way I see it is the NWA and Delta pension issue is pretty much a wash.
IM