Originally Posted by
OpieTaylor
Just curious, have you considered that it wasn’t a charitable decision? What would happen when 51% of voters do not have a pension and 49% do? I would think the bankruptcy laws that freeze an employees vesting years of service for a pension would not apply if a union group not in bankruptcy voluntarily votes to dissolve a pension for a better/different 401k/defined contribution .
Are you familiar with a specific law that would protect the not yet retiring pilots if the membership voted to scuttle the entire pension once a majority didn’t have even have one?
The idea that it’s impossible to “loose” pension equity from a past contract, is directly offset by every soon to retire pilots desire to “gain” pension equity right before retirement via a new contract. You feel it can go one way but not the other? Especially if half or more of the group were excluded from a pension.
The IRS website has several pages on this. In summary IMO it states that earned benefits will be maintained in you scenario.