Originally Posted by
Bucking Bar
Would returns not float with the market? Agreed, a 5% "target" trails the market by >6%. I do not understand why the optionality is hard for the IRS.
There is much that is not known by line pilots about the actual plan at this time. They started with a conservative 3-5% growth, which was rightly criticized. The beginning of the year update mentioned individualizing the rate of return in a target date style option. They did not mention what that would do to the risk of underfunding.
The IRS simply has not responded to any requests from us. Optionality is likely hard because no plan like this exists anywhere.