Financial negatives if retirement age is extended
01-10-2007, 12:46 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Aug 2006
Position: A300 Capt
Posts: 156
Financial negatives if retirement age is extended
Pilots at financially strong companies (FedEx & UPS for example) need to be aware of some major drawbacks of changing the current retirement age. As explained to me:
B-fund: Ask an over-60 F/E if he is getting any contributions towards his B fund. No he is not; the section 415(b) does not allow it. This is also the section that allows us to have a tax deferred fund to make up for the requirement for pilots to retire earlier that Social Security limits. Theoretically, we could lose this entire benefit.
That should be enough to start the 45-55 year olds to write the congressman!
B-fund: Ask an over-60 F/E if he is getting any contributions towards his B fund. No he is not; the section 415(b) does not allow it. This is also the section that allows us to have a tax deferred fund to make up for the requirement for pilots to retire earlier that Social Security limits. Theoretically, we could lose this entire benefit.
That should be enough to start the 45-55 year olds to write the congressman!
01-11-2007, 11:32 AM
#2
Gets Weekends Off
Joined APC: Aug 2005
Position: Retired
Posts: 980
Originally Posted by Freightbird
Pilots at financially strong companies (FedEx & UPS for example) need to be aware of some major drawbacks of changing the current retirement age. As explained to me:
B-fund: Ask an over-60 F/E if he is getting any contributions towards his B fund. No he is not; the section 415(b) does not allow it. This is also the section that allows us to have a tax deferred fund to make up for the requirement for pilots to retire earlier that Social Security limits. Theoretically, we could lose this entire benefit.
That should be enough to start the 45-55 year olds to write the congressman!
B-fund: Ask an over-60 F/E if he is getting any contributions towards his B fund. No he is not; the section 415(b) does not allow it. This is also the section that allows us to have a tax deferred fund to make up for the requirement for pilots to retire earlier that Social Security limits. Theoretically, we could lose this entire benefit.
That should be enough to start the 45-55 year olds to write the congressman!
01-11-2007, 02:03 PM
#3
Gets Weekends Off
Joined APC: Mar 2006
Position: FDX A300 CPT
Posts: 967
Originally Posted by FoxHunter
Sorry, you're again wrong. The B fund is funded for over 60 guys. Just another typical piece of bad info out there.
soon you will have to change position to 727fe...hehe
01-14-2007, 07:52 AM
#4
Gets all holidays off
Joined APC: Feb 2005
Position: Retired UPS 767 Captain, SDF Z
Posts: 431
Originally Posted by Freightbird
Pilots at financially strong companies (FedEx & UPS for example) need to be aware of some major drawbacks of changing the current retirement age. As explained to me:
B-fund: Ask an over-60 F/E if he is getting any contributions towards his B fund. No he is not; the section 415(b) does not allow it. This is also the section that allows us to have a tax deferred fund to make up for the requirement for pilots to retire earlier that Social Security limits. Theoretically, we could lose this entire benefit.
That should be enough to start the 45-55 year olds to write the congressman!
B-fund: Ask an over-60 F/E if he is getting any contributions towards his B fund. No he is not; the section 415(b) does not allow it. This is also the section that allows us to have a tax deferred fund to make up for the requirement for pilots to retire earlier that Social Security limits. Theoretically, we could lose this entire benefit.
That should be enough to start the 45-55 year olds to write the congressman!
I just spoke with one of our great, advanced in years (>73), PFE's who was amazed at the amount of cash coming in....
01-15-2007, 04:51 AM
#5
Gets Weekends Off
Thread Starter
Joined APC: Aug 2006
Position: A300 Capt
Posts: 156
I stand corrected, my apologies for posting bad info. The explanation came from an accountant, not a line pilot. The one pilot I did speak to confirmed, but "misunderstood" what I asked. Now another pilot told me he is still getting the contributions.
01-15-2007, 09:12 AM
#6
Gets Weekends Off
Joined APC: Dec 2005
Position: FO, looking left
Posts: 1,057
Other financial negatives
Lets not forget the fleet and seat displacements from all the over 60 FE's that could immediately upgrade to widebody captain!
Looks like:
More time spent on reserve
More time commuting
More time staying in a crash pad
More time as FO
More time on smaller equipment making less money.
Geez, these financial negatives came right off the top of my head. There is no doubt that changing age 60 would have be a "Financial Negative" for ALL pilots under age 65.
Plain and simple...
We don't want to work longer to earn the same amount of money!
Lets hope age 60 is never changed. The only thing I want to be flying when I am 60 is a Cessna-172 with my grandson in it.
Looks like:
More time spent on reserve
More time commuting
More time staying in a crash pad
More time as FO
More time on smaller equipment making less money.
Geez, these financial negatives came right off the top of my head. There is no doubt that changing age 60 would have be a "Financial Negative" for ALL pilots under age 65.
Plain and simple...
We don't want to work longer to earn the same amount of money!
Lets hope age 60 is never changed. The only thing I want to be flying when I am 60 is a Cessna-172 with my grandson in it.
01-15-2007, 11:19 AM
#7
Gets Weekends Off
Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
Originally Posted by ryane946
Lets not forget the fleet and seat displacements from all the over 60 FE's that could immediately upgrade to widebody captain!
Lets hope age 60 is never changed. The only thing I want to be flying when I am 60 is a Cessna-172 with my grandson in it.
Lets hope age 60 is never changed. The only thing I want to be flying when I am 60 is a Cessna-172 with my grandson in it.
I'm really looking forward to flying with the Alzheimers Captains. Should be great fun to mess with their memory issues. Can't wait ...
Mark
01-15-2007, 01:05 PM
#8
Gets Weekends Off
Joined APC: Jul 2006
Position: A300 Captain
Posts: 257
Originally Posted by MaydayMark
There would have to be a (vacancy) bid filled by seniority just like every other seat change opportunity! It would certainly slow down upgrade opportunities for the young guys however. In short, it's a bad deal if you are under 60.
I'm really looking forward to flying with the Alzheimers Captains. Should be great fun to mess with their memory issues. Can't wait ...
Mark
I'm really looking forward to flying with the Alzheimers Captains. Should be great fun to mess with their memory issues. Can't wait ...
Mark
01-15-2007, 01:10 PM
#9
Gets Weekends Off
Joined APC: Sep 2006
Position: Retired
Posts: 3,717
Originally Posted by MaydayMark
There would have to be a (vacancy) bid filled by seniority just like every other seat change opportunity! It would certainly slow down upgrade opportunities for the young guys however. In short, it's a bad deal if you are under 60.
I'm really looking forward to flying with the Alzheimers Captains. Should be great fun to mess with their memory issues. Can't wait ...
Mark
I'm really looking forward to flying with the Alzheimers Captains. Should be great fun to mess with their memory issues. Can't wait ...
Mark
How about if you're 58. Would it be a bad deal then?
How about if you're 57 and have been hanging out in the right seat, but would like to go for the gold? Would it be a bad deal then?
How about if you're 56 and have only 8 or 10 years with the company, and would like to get a few more higher income years at the 2% a year?, because this thing is not about captains only, it's about first officers too. Would it be a bad deal then?
How about if you were 50 and you were on your forth wife and third house. Would it be a bad deal then?
How about if you're 45 and just got hired after your last company went Tango Uniform, or you just got here from the military. Would it be a bad deal then?
How about if you're 30, and you were about to become a Boeing captain.... Would it be a bad deal then? Maybe. As for displacement, in my opinion, it won't happen, at least not at FedEx. Maybe at other airlines, with less growth, but not here.
And, oh, by the way, Mark, did you say something? Like I said before, if a guy can handle the job, that's fine. If he can't, then he shouldn't be there. But for you to say "I'm really looking forward to flying with the Alzheimers Captains. Should be great fun to mess with their memory issues. Can't wait ..." shows a level of maturity of a 12 year old. Maybe they shouldn't go by age, but by maturity. Surely you'd be on the street.
Thread
Thread Starter
Forum
Replies
Last Post
