Au contraire mon frere! If you miss your first months retirement check, the money owed to you (for that month) will be amortized over your expected lifetime and paid in equal installments. E.G. If you miss your first months retirement check for 8K and they think you'll live for another 20 years (240 months), you'll get $33.33 a month for 20 years to catch up. Great deal huh? Moral......don't miss the first month's check! (this is from my notes from the FedEx ALPA retirement seminar)

[QUOTE=DLax85;1762076]Question: If one turns 65 early in the calendar year --- say Jan, Feb or March --- what's the optimal time to retire?

Before Dec 31?

Or wait until one's birthday?

I can understand why some guys would wait until the end if they thought a new contract which increased the A fund cap was imminent

But now that those hopes have been dashed, I assume there is little financial motivation for them to fly thru/past peak

Albie brought this up in another thread after the most recent announcement by PC that we're headed to the NMB.

Just wondering how the math works out assuming the increase in the A fund cap is no longer imminent

???

Retirement experts please chime in[/QUOTE



If possible it is almost always best to retire the last day of October or November. You get 100% of the vacation and by that time you would have maxed out Social Security so it will not be taken out of your vacation check. Your first check will come the first day of the next month (the day after you retire) so basically one extra check.

Actually, that depends on WHY you didn't get the first check. For example, lets say you retire Dec 24, and you want to start receiving benefits 1 Jan... If you get all the paperwork in to Aon Hewett within their timelines, you still won't get a 1 Jan check, but on 1 Feb you'll get 2 and you'll be caught up. But, if you don't get the paperwork done in time, or delay your retirement past the BCD, (in which case you go back and restart all the paperwork), then they amortize any missed payments.

It's absolutely critical to go to the ALPA retirement seminar. At LEAST once. Tons of information you had no idea about, and which the company frankly doesn't care whether you know or not. (Actually, I believe they'd prefer you didn't know.) The first time should be before vacation bidding for the year you plan to retire.

This is my favorite thread on APC. The company moles would have a heart attack if everyone started talking about dropping their retirement notice between now and 1 dec.

Agreed. Everyone has their reasons for when and why to retire. I see no valid reason to stay and gut it out until a new contract. QOL is the lowest I've seen it in the last 15 years.

Every year you continue to work past 60 has a direct correlation (on average) of earlier death. That's why the company wants to ding you 3% per year for early retirement under 60. You will live longer and they have to pay you longer. So they want a discount. Complete BS.

Drop the papers and enjoy your well earned retirement!

GRD is spot on.

I left March 1st and have been enjoying each and every retirement check without the bother of working. Could have stuck around waiting for an improvement but for me it simply wasn't worth it. Both Fedex ALPA and AON Hewitt were most helpful throughout the process.

Depending on your benefit when you do the math you soon learn the take home pay difference of working and retirement is very little. No more 401K, FICA, Medicare, union dues, ALPA PAC, and a lower tax bracket all help.

Some of you are concerned about the increased medical costs. Being in good health I went with the "high deductible plan" costing $128 monthly. Of course I haven't been sick since I stopped flying those crummy schedules.

The only one drawback for me is the inability to jumpseat offline. To deal with that I normally buy non-refundable tickets early.

The reduction in retirement benefit prior to age 60 is not FedEx's idea. IRS code Section 415 sets the rules for early retirement under a defined benefit plan. The IRS considers the normal retirement age, in most cases, to be 62. Commercial airline pilots are given a waiver down to age 60.

Thanks for the clarification on IRS rules.
Still BS.

You give the company 25 years of service and are less than 60, you are penalized 3% per year. BS IMO. Considering taking the hit anyway.

As an example, the military provides full retirement with 20 years of service. In many cases, theses folks are 41-42 years old on average if officers with a check a month until they pass. No penalties.

Service men and women deserve it and earn it. I didn't stay my 20 in the military (my chocie) ... but my 25 years of service at FDX is no less important than another who provides 25 and is over 60. Go figure.

At the end of the day, this job has fallen well short of expectations. Started out great but I could write volumes on the topics of decline. Anyone that's been here at least 10 years understands.

A slow gradual decrease in QOL (for many reasons) and I can no longer recommend ANY pilot consider FDX as a career choice. Too late for me to start over. Caveat Emptor.

I think FDX will struggle to attract the best pilots when competing against the pax majors for many years to come if the current climate continues. Just look around at your fellow pilots. Worn out with no end in sight.

If retirement is a possibility, take it and run for the hills. I wouldn't hesitate for a minute.

On a different but related subject ...

Do any of you APC Contract Experts know if the FDX LTD insurance payments are taxable? Is FDX self insured? Does that matter to the IRS? Any chance you have a reference?

How about the ALPA LTD insurance? Same story?

Thanks,


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