MD Abuser

You're right about one thing. They seem to do things that they think are right. Kind of like their current stance regarding drawing down BLGs across the board so that no one gets furloughed. No matter how many guys get up in the crew room and say "Furlough them, it's part of the airline business", I'm glad that they seem to represent all of the seniority list.

As for lump sum retirement, if you wanted an A plan that becomes unstable like USAir and Delta, then have at it, what a brilliant idea. Let me see, let's have all of the guys retiring take ALL of their money out of the A Plan at the same time, thereby reducing the amount of money that can compound. Sure, it works well for those retiring, but it greatly reduces the chance that it will be there for everyone else on property, especially the new hire.

But go ahead, you got yours.

FDXLAG

My guess is MD Abuser is part of the unions increased comm plan. Along with web video we get direct posting by one of the top 3. I like it.

If they took a poll on furlough it would not win.

If only they hadn't had a lump sum option at US Air they would have kept the A Plan through BK huh?

No 65 for me

Does anyone know how much money is in our pension fund? BILLION'$. Do you really think that 75 to 100 guys per year are going to deplete the pension fund? We earn aprroximately $1 billion a year in interest. Taking 85 cents on the dollar for an 18 year retirement will net you about 1.8 million. I'll take it and run. It's not an "I've got mine, screw you" attitude, it's "I'd like to take most of what I've earned after 28 years and manage it myself, thank you". This way, if you drop dead at 63 or 64 or even 69, then at least your heir's will be taken care of and not have to live on a mere fraction of what you would have gotten via your pension plan. Why is that so hard for people to understand?

FDXLAG

Agreed and in addition it allows you to isolate yourself from company and union games when you no longer have a vote.

No 65 for me

I couldn't have said it better myself. Finally, someone who actually get's it!!!!

MD Abuser

So because I don't buy into your line of thinking I work at the union. Those guys can have their jobs. I much prefer posting here in anonymity and not having any responsibility to back anything up. Throwing verbal grenades into the midst of the huddled masses is much easier.

As for the US Air A Plan, one of the components of it's termination in bankruptcy was the very low level of funding, due in part to reduced growth based upon lower average earnings growth tied to the low interest rates and with pilots withdrawing million dollar plus lump sums. Add up all of the small stuff and it equals big stuff.

Have at it Lag.

FDXLAG

No one has to agree with me all the time; I certainly don't. I was just pointing out the eerie coincidence of your 15 previous posts as either defending a MEC position of an officer's appearance. My apologies for suspecting you to be part of the new comm plan.

Also accept my appology for suspecting neither USAIR or Delta A Plans would have survived BK. The reduction in future obligations were what "sold" the BK judge. But then I don't think anyone will have an A Plan in 20 years.

Busboy

Just curious...Does anyone know how long USAir and Delta had the A-fund "lump-sum" provision available? And, does any solvent airline currently have it?

It seems that the only danger anyone ever speaks of, when they argue against a lump-sum provision, only concerns an A-fund at a company going bankrupt.

So using that logic...I guess we should base all of our negotiating goals on what would happen if FDX entered bankruptcy? Just in case?

RedeyeAV8r

I can speak for USAir from the mid 80's. USair had it then. It wasn't a carte Blanche Lump Sum. Every year at a certain point (Oct I believe) they would run the numbers formula. It was all tied to the 10 year treasury Bond.

Based on the formula, a Quota of authorized Lump sum retirements was issued.

They would post this number and guys retiring could put in for a Lump Sum and it was first come first serve. Once they hit the majic number for that year, no more Lump sum outs were autherized. The most lump outs in any one year was about 45 as best as I can recall. And remember the 80's and mid 90's had a booming economy!

USAir had a 60% A plan back then and if a guy lived well into his 80's he had a very nice lifestyle. The lump sum guys (with 25 yrs of service) generally received approx 750-900K in cash. Back then most guys took the annunity vice the Lump.

I can't speak from authority on Delta. I don't know how long they had a Lump sum option but they did have a much more liberal Lump Sum option than USair. Many pilots @ Delta opted to jump ship in 2001-02. I don't think they had a quota cap on lump outs like USAir. As bankruptcy became enevitable guys were lined up to take the early out lump sum option. I believe their Lump sum was a 50% cash out based on future dollar value of their annuity A plan. I do know that the top end of the Delta list is pretty young (relative to the top end Nwest) due to all the pilots bailing out at the last minute.

AerisArmis

I KNEW IT!!! Even you do agree with yourself sometimes! But....how do you argue with yourself?