Ding ding winner. Even with A Plan devaluation due to inflation it is still a big plus especially when diversified with a defined contribution.

Push for higher B Plan and get cash over cap. Simple.

Sent from my SAMSUNG-SM-G935A using Tapatalk

 

October 18, 2017

Fellow Council 7 Pilots,

We just completed the last of our triannual regularly scheduled MEC meetings for 2017. It was a momentous week, and we covered a lot of ground. On the top of the agenda was the retirement research we have been doing—we will get to that shortly.

Now that the 767 Passover disputes are in, we should be able to calculate and distribute the 5% hold-back payments from the 2015 CBA Lump Sum Payment Distribution letter. We are targeting sometime in the November bid period, but please watch for an update from the FDX MEC secretary-treasurer.

On our retirement research, we were able to focus on one plan referred to as a “Variable Benefit Plan.” By narrowing the focus, we are allowing our team to flesh out details—it goes without saying that there are a lot of details. The education process for retirement will continue. It will be transitioning to explain the Variable Benefit Plan, and we believe when you get the chance in the future to run your numbers in the modeling for the plan you will be impressed. Our actuaries from Cheiron have blown most of us away. These guys are as sharp as they come. In combination with our ALPA staff, both local and national, and David Blitzstein, they have been more than invaluable.

The MEC passed a motion to allow our plan development team, led by our Negotiating Chairman Pat May, to meet with the company to explain the concepts of the plan design at the end of the month. We are not, repeat not, in negotiations. This is just a necessary step to allow the Company to understand the concepts of this plan type as this will be as new to them as it is to us. As we get more information to you explaining the plan details (important to note that you will get details, the company will get concepts), and after the Company has digested the info, if the Company indicates they are interested, we will inform you. Between now and whatever time, it takes the Company to indicate their interest, the education process for the pilot group will be ongoing. I encourage all of you to look at all the information on ALPA - Advancing Aviation Safety and Security since 1931 concerning retirement. It is important to have a complete understanding of what we have in our current retirement system and the associated risks and rewards involved.

Fraternally Submitted,

 

And the sales job begins. Every source that the MEC gives is a proponent of the variable DB plan. Why don't they give us sources advocating other types of plans or the benefits of traditional DB plans. When you read Cheiron or Blitzsteins websites, they talk about the insecurity of traditional DB plans due to lack of funding. What about a DB plan that is fully funded?

We need to be talking to other crew members NOW to get them asking questions.

 

As our 260k capped pension becomes a smaller and smaller percentage of our actual salaries it is less and less likely that our plan will ever be underfunded. One of the reasons I think we should keep our A Plan and explore other options to supplement it or the B Fund. The question I want answered is how much would it theoretically cost the company to increase the cap to 300k. Why is that a secret?

 

Have you actually called or written to your block rep, LEC officers, or MEC officers to express your dissatisfaction with the process or the alternative they are considering?

If you have, what was their response to your criticisms?

I have written to mine and told them to continue the process. It was easy to do.

FedEx MEC / LECs

 

Why not raise the A plan cap to 320k (and keep the B plan) for current pilots. On 01/01/2019 all new hires will be B plan only at TBD % with cash over cap. On 01/01/2019 current pilots have the option of freezing their A plan and increasing the B plan to TBD % with cash over cap.

 

Yes I have and it was easy to do. The response I got was trust them, we will like what we see. No answers to the questions I asked.

When you told them to continue the process, does that mean you are happy with what they are doing or did that mean that you wanted them to continue to explore other options?

 

Because the A plan would then be underfunded and be subject to huge PBGC penalties. Not only that, but why have two different classes of pilots, one with a DB plan and one without. Once the ones without outnumber the ones with a DB plan, what do you think the odds are that the membership votes to freeze the DB plan for more money for the pilots without one?

 

LMBO, it’s all fun and games but just keep your eye on the ball.

 

No, no, no, that’s pretty much selling the guys who are not yet on property. They will eventually become the majority and who knows what will happen then.