Originally Posted by NotMrNiceGuy

Agree with this sentiment. The A-Plan is a capital hog. It’s just not efficient to make this the primary retirement vehicle. The problem is how to make everyone happy. I don’t know how to do that without making two options. But you can have options that don’t split the crew force. Here’s a split that I’d like to get some feedback on.

For the senior folks:
1) Full DSA payout of 686 hours at highest negotiated pay rate (~$450ish) if announced in the next 12 months from DOS. Roughly $300K.
2) Lump sum MBCBP of $400K.
3) Must be over 55.
4) Choosing this option means they would forgo the following option for the junior guys. My estimate for this cost is $300M. 500 pilots at $600,000.

For the junior folks:
1) Tie A-Plan to 401k compensation limit ($345K in 2024) at a rate of 38%. That would make the max pension $131.1K this year. If the limit goes to $360K in 2025, the max pension goes to $136.8K. This would have the trajectory to have the pension worth $230K in 20 years without renegotiating each CBA.
2) DC Ballpark 15% COC. This becomes the primary vehicle for retirement. We take most of the $1.8 billion invested in the traditional in TA1 and move it to pay rates and DC. Not having to meet regulated premiums required by the PBGC should make this option more efficient on a dollar for dollar basis.

The senior benefit from a tax advantaged lump sum. The junior folks don’t have a split retirement scheme and they get a sustainable retirement that is diversified.

I’m curious if this offering is viewed as respectful to the senior folks.