Fedex Pilots proposed retirement plan
07-27-2017, 12:27 PM
#121
Gets Weekends Off
Joined APC: Aug 2012
Posts: 711
Originally Posted by DLax85
The B fund isn't designed to cover long term disability, so let's not try to get fancy and make it do so
That's how we get ourselves in trouble --- as what we thought we negotiated doesn't turn out to be true
Let's Keep It Simple!
Tie A plan cap to some very reasonable amount that most pilots attain --- fill in the gap with increased B fund payments
Cash over Cap if we can get it --- or perhaps a higher cap than the A fund
Let's tie these caps to other portions of the contract -- A fund Cap = WB Capt rate x Annual BLG has been suggested
B fund Cap = WB Capt rate x 1,000 hours (...or 1,200 hours)
Given our status quo, and the company's desire to eliminate/freeze the A fund for a pure B fund, I don't see us acheieving more than that
And I'm at a loss to see why they'd agree to it now
We had leverage an didn't have the collective SA to use it
Hopefully it's there next time as well
That's how we get ourselves in trouble --- as what we thought we negotiated doesn't turn out to be true
Let's Keep It Simple!
Tie A plan cap to some very reasonable amount that most pilots attain --- fill in the gap with increased B fund payments
Cash over Cap if we can get it --- or perhaps a higher cap than the A fund
Let's tie these caps to other portions of the contract -- A fund Cap = WB Capt rate x Annual BLG has been suggested
B fund Cap = WB Capt rate x 1,000 hours (...or 1,200 hours)
Given our status quo, and the company's desire to eliminate/freeze the A fund for a pure B fund, I don't see us acheieving more than that
And I'm at a loss to see why they'd agree to it now
We had leverage an didn't have the collective SA to use it
Hopefully it's there next time as well
The disability "protection" that an A plan offers to someone who is disabled and still earning the "multiplier" of longevity while out, is a hidden insurance for us and much more valuable than I think many people realize.
07-27-2017, 01:02 PM
#122
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
Discussion was NOT about B plan covering LTD, but rather the desire to have B plan contributions Continue should a pilot go out on LTD.
7% Max B plan is 18.6k
8% is 21.2k
8% of a 300k earnings (certainly not out of whack for a Domestic WB Capt) is 24
B plan contributions while disabled and cash over cap were part of the DAL NC comparison. As was a career comparison between DAL and UPS...unless my memory is playing tricks on me. (I blame the Scotch)
Have to admit to being disappointed with the products we put out compared with the comparisons SWA and DAL folks put out.
Internet forums produced a lot of the same info, but that was due to the efforts of pilots here and on JF
7% Max B plan is 18.6k
8% is 21.2k
8% of a 300k earnings (certainly not out of whack for a Domestic WB Capt) is 24
B plan contributions while disabled and cash over cap were part of the DAL NC comparison. As was a career comparison between DAL and UPS...unless my memory is playing tricks on me. (I blame the Scotch)
Have to admit to being disappointed with the products we put out compared with the comparisons SWA and DAL folks put out.
Internet forums produced a lot of the same info, but that was due to the efforts of pilots here and on JF
07-27-2017, 04:39 PM
#123
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Originally Posted by DLax85
In other words, Everyone received a 14.28% increase in their annual B fund contributions
In other words, those who have already reached the IRS contribution cap for the total of all DC plans (which also include 401k and PSRP) will receive NO more B fund contributions for the remainder of the year. That makes their B fund rate 0% from that point on, and reduces the average B fund rate with every dollar earned. For those people, the rate could be 15% or 25% or 50%, and they still wouldn't get more money in their B funds, they'd just hit the IRS limit earlier in the year.
Any scheme beyond that involves taxes.
.
07-27-2017, 04:44 PM
#124
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Originally Posted by DLax85
Let's Keep It Simple!
...
B fund Cap = WB Capt rate x 1,000 hours (...or 1,200 hours)
.
07-27-2017, 06:26 PM
#125
Line Holder
Joined APC: Jun 2014
Posts: 71
Trashauler,
Since you’ve generously opened yourself up for questions I’d like to ask two about the psit....
1). What status does you hours of makeup generate as? Are they general makeup or priority makeup or another class?
2). How in the world do we have aircraft without disputed pairings for so many months even prior to the “new psit agreement”. Shouldn’t the two worst pairings always be disputed? That makes no sense to me, it doesn’t take a fatigue report (which is again instilled in us over the years as a headache) to find the two worst pairings.
Since you’ve generously opened yourself up for questions I’d like to ask two about the psit....
1). What status does you hours of makeup generate as? Are they general makeup or priority makeup or another class?
2). How in the world do we have aircraft without disputed pairings for so many months even prior to the “new psit agreement”. Shouldn’t the two worst pairings always be disputed? That makes no sense to me, it doesn’t take a fatigue report (which is again instilled in us over the years as a headache) to find the two worst pairings.
07-27-2017, 06:42 PM
#126
Gets Weekends Off
Joined APC: Nov 2016
Posts: 936
Originally Posted by Busboy
What does the spouse get if he drops the day after buying the annuity?
07-27-2017, 08:07 PM
#127
Gets Weekends Off
Joined APC: Aug 2012
Posts: 711
To clarify for me since it's been some time since we hashed over this during CBA 2015:
In 2017, assuming one hasn't hit the $54,000 IRS 415(c) limit, doesn't the B find stop paying out when pensionable compensation hits $270,000 this year? See:
http://https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
Isn't that what we mean by our B fund not paying cash over cap...cap being $270,000 in 2017, $265,000 in 2016?
In 2017, assuming one hasn't hit the $54,000 IRS 415(c) limit, doesn't the B find stop paying out when pensionable compensation hits $270,000 this year? See:
http://https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
Isn't that what we mean by our B fund not paying cash over cap...cap being $270,000 in 2017, $265,000 in 2016?
07-27-2017, 10:01 PM
#128
Super Moderator
Joined APC: Jul 2006
Posts: 5,545
Originally Posted by Raptor
To clarify for me since it's been some time since we hashed over this during CBA 2015:
In 2017, assuming one hasn't hit the $54,000 IRS 415(c) limit, doesn't the B find stop paying out when pensionable compensation hits $270,000 this year? See:
http://https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
Isn't that what we mean by our B fund not paying cash over cap...cap being $270,000 in 2017, $265,000 in 2016?
In 2017, assuming one hasn't hit the $54,000 IRS 415(c) limit, doesn't the B find stop paying out when pensionable compensation hits $270,000 this year? See:
http://https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
Isn't that what we mean by our B fund not paying cash over cap...cap being $270,000 in 2017, $265,000 in 2016?
07-28-2017, 08:05 AM
#129
Gets Weekends Off
Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
Originally Posted by TonyC
Whoa, Nelly. There ain't no B Fund cap in the CBA. Let's keep it that way. (The IRS defines those caps.)
.
.
We'd all like such a "cash over cap" (clause without limitation) added to the CBA, but I'm confident the company wouldn't want that if they agreed to payout over the IRS cap.
(...just like they don't want it to increase the A fund cap)
But would they agree to a "cash over cap" that had some limitation?
If so, wouldn't that be an improvement over what we currently have?
07-28-2017, 11:21 AM
#130
Gets Weekends Off
Thread Starter
Joined APC: Dec 2013
Position: FedEx A-300 Captain
Posts: 125
Originally Posted by Fdxlag2
If you look at all the options on the FedEx retirement site and run the CNN options for 2 million you get almost exactly the same numbers with exactly the same options. It looks to me like FDX probably pays about 2.4 mill for an annuity for a pilot that retires at 60 and 2 mill for one that retires at 65.
I'd also support ALPA taking over the pension if I could get a 2.4 million check at age 60 and forego and pension payment.
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