Fedex Pilots proposed retirement plan
07-24-2017, 05:48 PM
#101
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Joined APC: Aug 2006
Position: leaning to the left
Posts: 4,184
Originally Posted by Fdxlag2
Here is a good annuity calculator:
Annuity Calculator - CNNMoney
$2,000,000 gets a 65 year old man $10,900 a month income for life, a 60 year old $9,700.
Annuity Calculator - CNNMoney
$2,000,000 gets a 65 year old man $10,900 a month income for life, a 60 year old $9,700.
07-24-2017, 06:04 PM
#102
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Joined APC: Sep 2006
Position: I never did mind the little things.......
Posts: 260
Bingo, Shack, Right-On
Originally Posted by Adlerdriver
How does ALPA acting as "the administrator" relieve FedEx of funding requirements? It's still FedEx money that makes the pension work - so.....wouldn't they still need to pay into the plan as normal?We "relieved" FedEx of a BUNCH of stuff we shouldn't have with this last contract. My desire to "relieve" them of further responsibilities is minuscule at this point.
P.S. My initial gut reaction (which has a pretty good track record) is NF Way. I have ZERO or even NEGATIVE (if that's possible) trust in our MEC's ability to negotiate something like this. After the BS sell job they did on the POS 2015 contract which continues to fail us monthly and isn't even fully implemented almost 2 years after ratification, why would I have any hope for a positive outcome on this. I just ran across BS (nice initials BTW) from the famed video sales pitch series and it was all I could do to simply be civil and bite my tongue to avoid calling him out.
07-24-2017, 06:07 PM
#103
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Joined APC: Nov 2016
Posts: 936
Originally Posted by Busboy
What does the spouse get if he drops the day after buying the annuity?
07-24-2017, 06:14 PM
#104
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Joined APC: Sep 2006
Position: I never did mind the little things.......
Posts: 260
Nice comment
Originally Posted by HIFLYR
I totally agree the old saying comes to mind
"if it sounds too good to be true it probably is"
Couple of things to think about:
how many times has a union messed up or flat out stolen from a retirement fund.
How many times have we been out lawyer-ed by the company in our contracts? The current lay flat seating issue comes to mind. No way ALPA can say they did not see that one coming as it was specifically asked during road shows and input was given to simply add a statement like. under no circumstances will it be less than first class etc. but no our Lawyers have vetted it and this will never be a problem. Just do a simple statistical look at the grievance record and then look at the supposed wins and ask yourself if they were really wins.
How about simply removing the 265ish limit on the Bfund and get cash over cap to full earnings etc. with a percentage increase "yes some tax implications but that can be factored in to the percentage increase etc"
I am glad we have a Union and support the effort and am a volunteer, I am not throwing stones just pointing out our past shortcomings. This comes to mind also "Those who cannot remember the past are condemned to repeat it."
"if it sounds too good to be true it probably is"
Couple of things to think about:
how many times has a union messed up or flat out stolen from a retirement fund.
How many times have we been out lawyer-ed by the company in our contracts? The current lay flat seating issue comes to mind. No way ALPA can say they did not see that one coming as it was specifically asked during road shows and input was given to simply add a statement like. under no circumstances will it be less than first class etc. but no our Lawyers have vetted it and this will never be a problem. Just do a simple statistical look at the grievance record and then look at the supposed wins and ask yourself if they were really wins.
How about simply removing the 265ish limit on the Bfund and get cash over cap to full earnings etc. with a percentage increase "yes some tax implications but that can be factored in to the percentage increase etc"
I am glad we have a Union and support the effort and am a volunteer, I am not throwing stones just pointing out our past shortcomings. This comes to mind also "Those who cannot remember the past are condemned to repeat it."
07-24-2017, 07:30 PM
#105
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
I wrote this....
"If we are successful in increasing the A fund FAE limit, I think we should tie it to other portions of our contract rates.
Perhaps, WB Capt or NB Capt x 1,000 hours --- then fill in the missing value with B fund enhancements
I don't think the company will agree to an A fund cap that captures our highest earners, and all the extra hours & various payments they may strive for in their final years --- that era won't return"
Then Tony responded with this...
So, assuming we were able to negotiate a raise to the cap, what should the limit be?
Should it be tied to a rate & set credit hours like suggested above?
Should it be retroactive?
"If we are successful in increasing the A fund FAE limit, I think we should tie it to other portions of our contract rates.
Perhaps, WB Capt or NB Capt x 1,000 hours --- then fill in the missing value with B fund enhancements
I don't think the company will agree to an A fund cap that captures our highest earners, and all the extra hours & various payments they may strive for in their final years --- that era won't return"
Then Tony responded with this...
Originally Posted by TonyC
...I think it's fair to correlate the benefit to that which a 25-year Wide-body Captain would earn in a year of Bid Line Guarantee. That works out to 884 CH for 52 weeks. I'd settle for 1,000 CH. 
Maybe we should start the bidding at 1,200.
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Maybe we should start the bidding at 1,200..
Should it be tied to a rate & set credit hours like suggested above?
Should it be retroactive?
07-24-2017, 09:00 PM
#106
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Originally Posted by DLax85
I wrote this....
"If we are successful in increasing the A fund FAE limit, I think we should tie it to other portions of our contract rates.
Perhaps, WB Capt or NB Capt x 1,000 hours --- then fill in the missing value with B fund enhancements
I don't think the company will agree to an A fund cap that captures our highest earners, and all the extra hours & various payments they may strive for in their final years --- that era won't return"
Then Tony responded with this...
So, assuming we were able to negotiate a raise to the cap, what should the limit be?
Should it be tied to a rate & set credit hours like suggested above?
Should it be retroactive?
A still higher FAE cap might benefit an older pilot reaching retirement age before reaching 25 YOS. In other words, if a pilot never gets to 50%, but he's accumulated some really good years, he might be able to reach the IRS limit with a higher FAE cap. For example, if he gets 23 years in with an FAE of $280K, he could wring out a $128.8K benefit. That's close to what a guy can get with the current formula, current FAE cap, and 25 YOS. How many pilots do we have who would fit that niche, and how willing would we be to negotiate a niche benefit for them? I'm guessing it wouldn't be a priority, but it's an example of another thought process which might be used to establish a new FAE cap.
As with any negotiation, you don't start the bidding with what you really want to achieve -- you stretch, and compromise. Shoot for the stars, but I don't think we should be satisfied until everyone with 25 years of service can expect to replace 50% of their regular income (BLG at straight time) with the defined benefit. Any FAE cap that impairs that ability is too low.
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07-24-2017, 09:07 PM
#107
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Joined APC: Sep 2006
Position: I never did mind the little things.......
Posts: 260
Troll Alert
Originally Posted by Fdxlag2
Know who else benefits from an enhanced B Plan option, anyone approaching or over 25 YOS. Whenever you have ALPA involved extra money for the seniors at the expense of the juniors is always an issue. FedEx likely spends more per pilot per year towards retirement than any other corporation. It never should hurt to talk about improvements. I am willing to listen.
07-24-2017, 09:12 PM
#108
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Everybody's selfish, so why shouldn't I be?
Originally Posted by Fdxlag2
I can't think of a single thing in the progress of mankind that hasn't been the result of someone being selfish. Even Mother Theresa likely thought what she was doing was for the good of her eternal soul.
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07-24-2017, 09:16 PM
#109
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Originally Posted by Chainsaw
Troll Alert
Originally Posted by Fdxlag2
Know who else benefits from an enhanced B Plan option, anyone approaching or over 25 YOS. Whenever you have ALPA involved extra money for the seniors at the expense of the juniors is always an issue. FedEx likely spends more per pilot per year towards retirement than any other corporation. It never should hurt to talk about improvements. I am willing to listen.
Just an odd one of us.
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07-25-2017, 02:30 AM
#110
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Joined APC: Nov 2016
Posts: 936
Originally Posted by TonyC
Keep telling yourself that. It probably helps when you have to look at yourself in the mirror to shave.
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