Thread: Wolf Pack
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Old 08-18-2024 | 06:44 PM
  #204  
Sled
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Originally Posted by DLax85
Good stuff - especially the foot notes found on that page.

When pilots argue the lump sum value of the A plan, it's dependent on what discount rate and mortality tables one uses. The union could easily provide an on-line calculator to show pilots how much the company values their current retirement based on the company's own, published, assumptions.
I had an actuary friend help me look up the Form 5500 filed with the US Dept. of Labor. You can find it yourself here:

https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-
5500

1) Under quick links on the RHS select Form 5500 Filing Search
2) In the search window type: FEDEX
3) Sort by Plan Year (descending)
4) The desired filing is FEDEX CORPORATION EMPLOYEES' PENSION PLAN. 2022 is the most recently available year.

Its a 115 page PDF with all the tax filings up front. The audited financial statements start on page 30, but the relevant part for this discussion is on page 43 (page 12 of the financial statement), which talks about the actuarial present value of accumulated plan benefits.

MORTALITY BASIS:
The assumed rate of return is 6.5%
The mortality basis is ClubVita 2021 US VitaCurves model and Pri-2012 mortality table with MP-2021 projection scale.
**Of note, this doesn't indicate the usage of a separate mortality table for pilots. Contrast this with the next block, dealing with retirement age:

RETIREMENT AGE:
Ranges from 4% at age 55 to 100% at age 71 for non-pilots and 0.5% at age 55 to 100% at age 65 for pilots

It seems to me that if there was a separate actuarial table for pilots they would probably call it out in the assumptions here (since they call out the differing retirement ages for pilots vs. non-pilots here and through the rest of the document). This isn't dispositive....maybe the tables they use have some separate data for pilots. I did do a google search for the ClubVita tables, and in the underlying data it didn't specify anything different for pilots that I could tell, though I'm not an actuary. It did seem to have some different data for white collar vs. blue collar and industry of employment.

Enjoy!
Sled
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