MoosePileit

When do Fedex pilots, if ever, cap out their A plan?

Afterwards, if so, how much do they lose per year (assuming min guarantee) since that A plan would be free off the top by staying in the cockpit?

If it's different than UPS, that would be interesting in comparison, amongst the remaining A-plan careers.

busdriver12

Moose, the maximum the A plan will ever pay out, under current rules, is 130K. No matter how much you make. You can get the maximum of 130K if you take retirement at age 60 or older, have 25 years with the company, and have a high five years of 260K or greater.

Even if that might sound good to people at other carriers reading this who get less, there is no adjustment for inflation. 130K/yr, twenty years from now, might barely make your car insurance payment. Okay, maybe an exaggeration, but without any inflation adjustment, the value goes way down, if you manage to live longer than the average pilot.

MEMA300

I believe UPS has an A-plan that has a COLA but it is a much smaller amount to start with.

MoosePileit

Thanks, they in total are different enough that under current CBAs, the decisions are a bit different past age 60 and/or 30 (edit- 30 yrs UPS, 25 yrs FDX) years.

Commando

UPS A-Plan Does NOT have COLA adjustments. It needs one though.

AerisArmis

You are mostly right. Some can exceed 130K, but not by a whole lot.

Additional Benefit Percentage based on Age/Service
Years of Vesting Service as of Date of Signing *
* * * * * * * * * 59 or older
* * * * * * * * *
50 51 52 53 54 55 56 57 58
Less than 10 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
10 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
11 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
12 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
13 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
14 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
15 0.02% 0.02% 0.02% 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03%
16 0.02% 0.02% 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03%
17 0.02% 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04%
18 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04%
19 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04%
20 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04%
21 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04%
22 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
23 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.05%
24 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.05% 0.05%
25 or more 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.05% 0.05% 0.05%

Packrat

I may be wrong, but I don't think ANY pension plan has COLA adjustments. That's why guys take lump sum payouts.

Viper446

[QUOTE=AerisArmis;1834695]You are mostly right. Some can exceed 130K, but not by a whole lot.

Additional Benefit Percentage based on Age/Service
Years of Vesting Service as of Date of Signing *
* * * * * * * * * 59 or older
* * * * * * * * *

I thought 130K was the max based on IRS limits? Is that not true?

FlyBoyd

Look down to the Defined Benifit Limit under Other. 2015 is $210,000.
COLA Increases for Dollar Limitations on Benefits and Contributions

2010 appears to be $195,000. We are well behind.
http://benefitsattorney.com/charts/maximums/

Honestly, I'm not sure if this is the correct reference, but it's what I found.

busdriver12

You know, I thought I knew this stuff, and that it had to do with the IRS limit being 260K, but when I look at your chart, that doesn't make sense, as that chart keeps the number increasing.

I found this in the contract, in the retirement section, so perhaps the limitation of 260K is because of this, and it is a fixed limit: "Final average earnings will be defined as the average of the highest five calendar years of compensation while working for the Company. In no event shall total final average earnings taken into account under the Pension Plan, the Compensation Limit Plan and the 415 Limit Plan exceed $260,000."

We gotta get this one fixed! Though I think it would be far better just to get a higher percentage of that 260K as opposed to raising the limit. Then you'd have everyone working overtime to achieve the new limit.