Exactly, and every CA that I fly with is going to stay to 65. They do not want to but when you look at the economics of it, guess what it is stupid to leave when you are getting 14% in a DC plan.
The way that I see it, the NWA guys have been arguing their retirements form the wrong perspective. The have been doing so with out the merged company's PWA. Not SLI but the money side of it. They are correct in stating that most guys would not stay for 2K more a month, but is that the case?
If you are looking at a frozen DB plan, yes, but what you fail to consider is the improved work rules and DC plan that would have been a 14%. 14% of a 400's CA pay is a lot of dough for five year. A little public Math...
Assume 200 a hr for a 400 CA.
Year 1 200 + 7% initial raise= 214 per hr. 80 hrs credit a month(this is conservative) 17120 per month.
14% of this is 2396.8 per month for 28761.6 a year
Now add years 2-4 of the PWA
Year 2 222.56 per hr =17804.8 per mo
DC 29915.01 per year in the plan
Year 3 231.47 per hr for 18516.99 per mo
DC 31108.54 per year in to the plan
Year 4 240.73 per hr= 19258.31 per mo
DC 32353.95 per year in the plan
Now add all of that extra money together on top of the huge raise that they get from the new PWA. What do you get
Over 122K in their DC plan on top of the raise.
Simply enough that is enough to put a kid through school, or add a lot to your frozen DB. I would do it and so would they.
Last edited by acl65pilot; 04-04-2008 at 05:23 AM.