Originally Posted by
sailingfun
Ok, Here is a actual pilots benefit who was 50 at termination.
Frozen plan was 96000 per year
Recovery.
PBGC plus stock recovery. 55,200 per year
Note money 323,000
MMPP money 112,000
DC contributions. 260,000- 10 years at 26,000 average per year. 200k average income
Total cash 435,000. Total tax deferred 212,000
10 years for this pilot to retire at 60 rule of eight money should more then double. Total should be close to between 800k and 1 mil at age 60 plus another 350 to 450,000 from DC contributions. base amount of 260,000 plus investment earnings.
So he had a 96,000 a year benefit. He will get 55,200 from the PBGC and have somewhere between 1.1 and 1.5 million in cash at age 60 with modest earning assumptions.
Again lets be serious? Pennies on the dollar? I don't think so. In fact on the Dalpa forum some of the most anti ALPA pilots have reported they believe they will do better then the frozen benefit.
One last point. I did not include a dime of the claim money or merger stock. Add that in and it gets even better but as mentioned those payments were for contract concessions.
Do you seriously the PBGC will be solvent then.. or better yet.. that they will actually pay when we hit that age? or will they say.. like Social Security.. that the retirement age, and therefore your eligibility to get those monies is... 70?????
Don't get me wrong, I wouldn't go back to a DB plan for all the tea in China, but using numbers from the PBGC and any other overtaxed gubbamint agency is scary to say the least..