just curious of your age and experience with NWA/DAL? I have a NWA pension of $46.00 when my time is up. So that’s my plan from back in the day.

 

The DB pension is way too much leverage for management during the bad times to even think about considering it. While a long shot, the guys close to retirement would best be focused on a retention package, since the regionals get a new one every week these days, to stay till 65.

 

Exactly and that was the point I was hoping to make. Zero guarantee in either direction, sure you can make calculated decisions but it’s luck at the end of the day.

 

Not at Delta, but I like the discussion.

I’m seeing a lot of hate on the pension. But here’s a consideration. Diversity of revenue streams in retirement. The DC is wholly tied to the market. If you have a down year in retirement, that can really impact your QOL and peace of mind in the golden years. Would be nice to have a revenue stream independent of market fluctuations.

18% is off the charts fantastic. Keep the DC high up, but also add a DB to diversify. Keep it at the PBGC guaranteed limits. I think that is $81K this year; but grows with inflation. Combine that with social security and you have $10K/month before you need to touch the 401(k) in a down year. What’s not to like?

Thoughts?

 

If you can’t save more than your 401k for your retirement over the course of your career as an airline pilot at any major you have too many toys, houses, or ex-wives. With today’s payscales even a junior CA will soon be pulling in a million every three years in addition to their 401k DC.

 

A million every 3 years? Not take home and that’s highly dependent on where you live, I like the comment above, diversify it with a pension plus 401k.

 

Everyone get their pension back yet? Or granted a new one?

 

Good luck getting a pension AND keeping the 18%.

 

That’s basically the main point. The company is only going to pay us X number of dollars for retirement. Any amount that we decide should be directed towards a DB plan takes money from the DC plan. Even if you’re hitting the 415c limits and getting cash in your hand that’s still better than a DB as you have the ability to do your own diversification say via real estate if being 100% in the stock market isn’t your thing. The only thing about a DB that is remotely positive is that it is completely hands off in that you never need to personally manage it like other investments. The problem is that freedom from hassle comes with a cost of much lower returns over a career and of course the threat of the money vaporizing in bankruptcy. On my very first paycheck in training here at Delta they gave me ~$300 in DC, and that money and the growth off of it will be mine until the day I die, barring government confiscation.

 

regarding the hands-off part: just throw your DC into a target date fund and check the balance every decade