Originally Posted by
JustInFacts
First, I am not intending to make it seem black and white, just the opposite. I am trying to point out that there is a lot more to it than the post I originally reponded to.
I don't have a copy of the AA contract, so I will assume that what you posted is correct. As far as being woefully behind, let's look at the United contract.
First, their LTD benefit. For the first two years, there is a difference of about $2500 a month between their max benefit and ours. In that first two years, a Fedex pilot will get $60,000 more in LTD benefit. After that, United gets a benefit of about $330 a month more. It will take about 15 years for that excess benefit to match the deficit of the first two years. So, after 17 years on LTD at the maximum benefit, a Fedex pilot and a United pilot will have received the same LTD payment.
Another item to look at is that Fedex pays 100% of the LTD plan while United pay 75% of their and the pilots pay the other 25%. Now, as far as DC contribuitions go, yes, Fedex doesn't make any of those for LTD. What they do have is longevity accumulation of 2% a year for the pension. So you could still max out the pension on LTD. How much of that would account for the DC contributions? Also, the Fedex offsets aren't at 100% like the United compensation offset. So I am not sure that we are woefully behind, at least United. It should also be noted that these comparisons are assuming that both pilots are earning the most they can. At United, if you are a 12 year 76-400 FO, since you didn't like the A350 comparison, your maximum benefit for 2025 would be about $13,500 per month while a Fedex FO could theoretically still make the $17,500 for the first two years and then the $14,600 after that. Again, we are talking about the top FO rate at United.
There is a lot to get into, so instead of people reading these comments as this is all there is to it, they should look at these as just a few of the items and read the differences themselves.
Ok, but now you are cherry picking the worst of the three legacies, which is not that bad, by the way. When you do that, you make it seem black (FDX) and white (UAL), when its more of a gray scale between multiple airlines. That's precisely why I tried to make a good faith effort to list all three of them in a way that is easy to compare. To me, if we are way behind a majorit of them and can only make an argument that we may be ahead on one in certain circumstances, ours seem woefully behind in a comprehensive comparison to the industry. You make a good point about FOs though. Which is why I find it interesting that Delta established a minimum monthly disability benefit. Seems like that may benefit the ultra junior pilots.
Delta: 50%, no cap / no cost / workers comp offset / DC 2X the benefit amount / min. payment floor.
United: 50%, cap $14,913.23 / 25% premium cost / United work offset / DC 2X the benefit amount.
American: 50%, no cap /no cost / no offsets / DC based on average monthly compensation.
FedEx: 60%, cap $17,500, then 50% cap after 24 mo. $14,583.33 / no cost / offsets / no DC.
• The APA plan information I got is from page 28 their 2023 TA Version 2.0 Executive Summary that you can find online.
Originally Posted by
NuGuy
On minor issues, sure. Chances you can dump $3 million into a 401k either tax free or tax defered is close to zero.
It sounds like that may not be the case for mbcbp. The previous NC was trying to negotiate a new concept to convert the current accrued benefit in the Pension plan as a pre-funded lump sum balance in the MBCBP. I don't think there is a contribution limit, just a distribution limit.