jetstar1

I don't know if I've seen this discussed. Under the VB plan, what is the expected increase in retirement funding for pilots versus the amount of money we would save the company.

155mm

First of all, I can't envision a scenario where the company would offer a "good enough" deal to the MEC or the pilot group. Secondly, if the company really wants to offload the A fund then we appear to be giving up a major negotiation advantage crawling on our knees (being proactive) to accommodate them. Finally, if they don't want to give up management (control) of the pension program then we can expect a very concessionary counter offer! What am I missing?? I know, I know, I know, "It's not that simple!"

Saluki135

I apologize in advance for these questions, I am pretty new at Fedex and not familiar with the background on this current conflict.

1) I keep reading that the MEC vote was politically motivated. What are the two political factions involved? Like one group pro VB plan the other group anti, or one group pro 2015 TA and one group anti?

2) Is this current interest in moving towards a VB retirement plan being steered by guys closer to retirement, who have already maxed their A plan and are looking at ways to bump their personal retirement before they punch out?

I understand the goal is to improve every members overall retirement, but if a pilot is retiring in 5 years, their exposure to risk will be a lot less than guys coming on the property in the last couple of years.

angry tanker

Let's take a step back and see what is going on. We have ALPA, Delta and United have ALPA. We have an A Plan, neither Delta nor United do. We suddenly meet this guy who has a great deal for us that isn't really an A plan, but something new. Maybe Delta and United would like something new...hmm. How about we (ALPA National) get Fedex to **** away their A Plan and try this new thing out. If it works, we get it for Delta and United. If not, oh well.

We are stupid for even thinking of getting rid of a guaranteed payout! We do nothing, take no risks, and we get paid! Yes, I know it is decreasing in value, but that is what the B Plan is for. Why are we not burning down the house for cash over cap and more B Plan? Who is driving this bus?

Nightflyer

The problem is, the MEC is driving the bus, and they don't listen to the crew force.

TonyC

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Huck

That's what the UAL pilots said....And USAir, and Pan Am, and Eastern....

pinseeker

This won't save the company any money. The advantage for the company is a known cost because now they don't have to guarantee the benefit and a guarantee of no PBGC penalties because the plan can never be underfunded because it is variable and we the pilots assume all of the risk.

Because our plan is fully funded, the company doesn't pay any PBGC penalties. The only added cost to them is the risk of market turmoil. The company likes knowing future costs for accounting and shareholders. That is why they agreed to pay 50 cents on the dollar to buy back sick leave if you give them a years notice on retirement. They like control. With a VB plan, they know what they will have to contribute under the contract.

Another question would be how would we get the floor funding increased each year. Would the company agree to a 5% increase in funding every year? What happens in 10-15 years if the company contribution remains the same? Aren't we right back where we started?

DLax85

If FedEx goes bankrupt our VB won’t be funded to well either

This is why our current retirement benefits of DB (A fund) and DC (B fund) already provides some diversified risk

Can we make improve our retirement by working within these two known plans without increasing the risks in our A fund?

DLax85

Who’s willing to answer question #2?

How many times in the last 3 contracts have we added verbiage regarding a specific benefit only going to pilots over a specific age on date of signing?

How will earned benefits - both years of service and high 5 earnings - be transferred to any VB Plan? (...if they are transferred at all)

Will they be retroactive or start accumulating again?

How will All these factors (“details”) affect the different cohorts within our association?

All are key questions which haven’t been publicly discussed/addressed.

Why?

Who’s driving the train and how fast is it leaving the station?

Who’s advising the conductor?