Age 60 and the B-Fund
 

The reason airline pilots have B-funds is to compensate for the statutory requirement to retire at age 60 at the peak of a pilot's earnings potential. Most highly compensated employees in other career fields can retire later and reap the financial advantages of longer careers. For an airline pilot fortunate enough to have one, the B-fund is a potentially important supplement to the 401K and the A-fund. For those who have already lost A-funds, the B-fund is essential.

Assuming for the moment that the retirement age is raised to 65, it won't take very long for Congress and the IRS to take notice of the existence of a category of retirement savings predicated on a retirement age that no longer exists. Since airline pilots have few influential friends in Congress these days, cancellation of B-funds should follow quickly.

There are many reasons why I think age 60 should continue. Unfortunately, ALPA surrendered on the safety issue ("safety" is the only word Washington will listen to from ALPA), and now opposes changing age 60 based only on a member survey. I think there are many potential unintended consequences attached to raising the retirement age. One that should concern all of us is the potential or even likely loss of B-funds.

I want to pose the question to those of you who think the retirement age should be raised: "Would you regret your decision to support raising the retirement age if the result was elimination of the B-fund?"

Be careful of what you ask for.

Not mention the fact that those born in 1960 or later don't get full SS benefits until age 67. That target keeps moving for those who are younger also.

A lot of worms in those cans.

Social Security
 

Segataki: I don't understand, you are amplifying my point, which is that the age keeps getting pushed further and further out and thus we shouldn't be basing any of our retirement/benefit amounts on SS age.

By the time I hit 67 the age for benefits for me could be pushed out to 70-75.

When the fcok do I get to retire if I have to wait for SS to kick in before I can do so?

I may be misreading this but I hope you aren't saying that you are counting on Social Security for your retirement. If so the answer to your question is: Never.

Think the b-fund will be the only target? A 12 or 15 yr pay scale will probably be extended to 20 or more, I don't think they will let us fly topped out for more yrs.

No, what I am trying to point out is the futility of tying any of our negotiated retirement and/or health benefits to a target that keeps shifting and really has nothing to do with those benefits.

I'll be fine in retirement because I married rich, like any self respecting pilot!:)

So who is "rich" ?? :D

BS
A Fund, B Fund?? Pilot speak for defined benefit plans or defined contribution plans. KISS for pilots!;) No, these so called B plans are not in the tax code for just pilots. Please point out where I can find anything about pilots in IRS Code 401(a)(17) which governs our PMPP or so called B plan.:confused: No, the changing the age 60 rule will have no impact on the B plans but it is great fodder to throw out to those inclined to have the mindset of a SCAB. :mad:

George
are you 100% positive about the IRS rules and the B'Fund?

Pilots were the only group that I know of who had B funds. other occupations had defined Contribution plans but they were different from our Pilot specific B plan. which were originally designed to bridge the GAP between the Mandatory 60 and age 65 collecting SS.

Now alot of things have changed since the B Plans beginning...............Tax law changes.....OBRA 93, is the biggest that comes to mind as well as
Bankruptcies, liquidations, and Many Distress terminations of Defined Benefit Plans or A Plans.

Wouldn't it be a big surpise to all of us, if the AGE changed to 65........followed by the IRS saying Your B plan money depostied by the company is now TAXABLE.

I am not a R & I expert, so I won't make blanket statments. I hope you can be as sure.