That would probably scare some of the youngsters, who would not believe that could happen to them <g>.

 

You think that's the case even now with the age 65 retirements? I bet you the A plan will turn out to be much cheaper now...

 

I'm not so sure UPS saves any A-Plan money by extending the retirement age.

FWIW, this is how I evaluated the A-Plan and retirement age.

If I had retired at age 60, my retired pay would have been $48K per year (16 years longevity at $3K per year). Over 5 years, this equates to $240K of "free money" I did not take.

However, with 5 more years of employment, my retired pay will increase $3000 per additional year of employment, or a total annual increase of $15,000.

My parent's average life span was 86 years. If I match that average, I will have 21 years after retirement at age 65. Those remaining years at $15K extra per year equate to an additional $315K of compensation. Considering the time value of money, that pretty much approximates or is greater than the $240K of retirement pay not taken. It also seems to me not to lessen the total retirement expenses that are required to be met by UPS. However, for those with more years of service, the tradeoff is not as clear.

Finally, I have 5 more years of employment to make very good wages, a good part of which is saved and furthers my life after retirement. Finally, I enjoy the job, and that was a big factor in choosing not to retire early.

 

I see, fair enough... Based on your past, very reasoned and logical posts I didn't think you're trying to gloat... Not sure I agree with the term "departed crewmembers" - I guess that has a very different connotation to me...


I see your point even though I've seen numerous retirement announcements in the Chief Pilot's weekly emails when he usually announces their last flight date, etc. The signed airplane picture is a nice touch. Of course, I guess occationally some people would write down nasty comments for guys they didn't like - very uncool in my view. We also have a Silver Eagles link at IPA... I haven't seen anything like that at any of my previous airlines but then again we didn't see many retirements but rather people leaving for other airlines...

As far as your earlier post regarding captain pay - I think you still assume that many of us will get at least 15-20 years in the left seat... I think many will be happy if they get 5 years, if any time at all, in the left seat - that's why I think your presumptions are incorrect...

 

Not only is the defined contribution plan cheaper, but the company does not have the long term funding obligations. Keep in mind that in the "real" world, people have been retiring at social security age for a long time (now 67 I believe.) There is a reason that many large corporations have eliminated their defined benefit plans.

By the way, lots of airline pilots like to quote a study that says the average airline pilot only lives 1 or 2 years after retirement. That is an urban legend. (viewed by experts as not being a valid study)

American Airlines funded a comprehensive study on pilot longevity after retirement, and the retirees lived longer than average. If I can find it I will post it.

 

Thanks for the logical, to the point explanation... It does make more sense to me now...

 

I totally agree. I was riding a j/s with the #1 guy on the seniority list about 6 weeks ago. I had operated with him only once before, but his being #1 kinda stuck in my mind. So we were casually chatting on the flight and I mentioned how nice it would be to submit one choice when bidding and know you will get it. He said something like "yeah, but that's over next week." When I asked what he meant, he told me he was retiring in 5 days (early retirement under MOU). He had already operated his last flight and was commuting home for the last time.

I felt bad that there was nothing in ANC or on the IPA website to note his retirement after 21+ years flying packages. I realize he wanted to keep things low key, but I'd really hate to think the only recognition he got after putting up with the crap all this time was a 2 yr guy (me) wishing him luck in retirement as we were walking thru security on the way out of the gateway.

 

Actually I respect him more for the no fan fair approach. Thats a "True Professional Aviator" for you. He doesn't need the cakes, water hoses, or low passes to know he did a job well done and is now off to more happy pursuits then dieing in a freighter.

 

He should have buzzed the tower in ANC......LMAO~

 

NM - iPhone error...