Which airlines still have a pension?
04-22-2007 | 08:35 AM
#1
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Gets Weekends Off
Joined: Dec 2006
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Which airlines still have a pension?
After what's happened in the last 6 years, with bankruptcies, wage reductions, givebacks, etc... which airlines are left with a sound pension plan? I know United and Delta lost most of theirs... How do FedEx and UPS fare? Are the pensions well funded? How many years does one have to fly for the company to retire with a pension? How long and how much is it equivalent to?
I wish I posted more answers than questions on this forum, but, trying to learn...
Thanks.
I wish I posted more answers than questions on this forum, but, trying to learn...
Thanks.
04-22-2007 | 09:26 AM
#3
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Joined: Apr 2007
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I’m not with Continental, and so other folks will have the best detail.
That said, CO is a good example, because they have a frozen A plan(defined benefit), which gives a new hire nothing, and in spite of the originally "defined" benefit, only gives pilots with claims against the fund a fraction of what they were promised.
CO puts 10% of gross salary(defined contribution) into a managed fund, which is like buying shares in a mutual fund. You may lose share value, but at least it actually was once 100% funded. This 10% is not deducted from your pay.
You can invest in a company 401K retirement plan, and within limits, that investment is not taxed going into the 401K, but it does come out of your gross pay.
http://airlinepilotcentral.com/airlines/legacy/continental.html
401K:
yes
401k Matching:
none
A/B Fund:
2.20% (frozen)/10%
Other:
Profit sharing (stock options)
That said, CO is a good example, because they have a frozen A plan(defined benefit), which gives a new hire nothing, and in spite of the originally "defined" benefit, only gives pilots with claims against the fund a fraction of what they were promised.
CO puts 10% of gross salary(defined contribution) into a managed fund, which is like buying shares in a mutual fund. You may lose share value, but at least it actually was once 100% funded. This 10% is not deducted from your pay.
You can invest in a company 401K retirement plan, and within limits, that investment is not taxed going into the 401K, but it does come out of your gross pay.
http://airlinepilotcentral.com/airlines/legacy/continental.html
401K:
yes
401k Matching:
none
A/B Fund:
2.20% (frozen)/10%
Other:
Profit sharing (stock options)
04-22-2007 | 10:12 AM
#4
Ok, No more sleeping Dog
Joined: Feb 2007
Posts: 889
Likes: 0
From: MD-11, F/O
After what's happened in the last 6 years, with bankruptcies, wage reductions, givebacks, etc... which airlines are left with a sound pension plan? I know United and Delta lost most of theirs... How do FedEx and UPS fare? Are the pensions well funded? How many years does one have to fly for the company to retire with a pension? How long and how much is it equivalent to?
I wish I posted more answers than questions on this forum, but, trying to learn...
Thanks.
I wish I posted more answers than questions on this forum, but, trying to learn...
Thanks.
1.) "A" Plan (defined benefit). It is made up of 2% accrual per year of service to a max of 25 years multiplied by the average of ones "high five" earning years (maxed at 260k). So if the average of the high five is 250k and with 25 years of service (50%) the annual "A" plan retirement benefit is 125k/yr.
2.) "B" Fund (defined contribution). Company pays into a mutual fund account that belongs to the individual, 7% of the pilots qualifying annual salary. 250k/yr times .07= 14.5k/yr.
3.) 401k Standard mutual fund account. Company match of first $500. Fundable to a max of 15.5k/yr (this year).
Our choices for mutual fund investment is relatively limited to the Vanguard family. Within the Vanguard family our choices are limited to a select dozen or so funds.
04-22-2007 | 01:52 PM
#10
Gets Weekends Off
Joined: Mar 2006
Posts: 1,228
Likes: 0
From: FO - 757/767
they'll all be gone someday. The govt hates them; at least with 401k's they can control the tax rates. Pensions will go the way of the dodo bird soon, and not just in aviation. If your searching for a job based on a pension, you may be ready to retire by the time you find one.
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