Retirement Q and A #3 Question
01-02-2018, 06:45 AM
#91
Gets Weekends Off
Joined APC: Aug 2006
Posts: 1,820
Originally Posted by Fdxlag2
They would have. They aren’t concerned with paying the pilot who already has 25 years a pension of 160k, that is chump change. It is the 1000 pilots they have added in the two years since the pension was overfunded that is the real money.
Originally Posted by Fdxlag2
And they make bigger contributions for a new hire through 10 years. And if the pension were uncapped they would make much much much bigger contributions for a new hire through ten years.
The real point is you and I don’t know how they fund our pensions. The union does and we should.
The real point is you and I don’t know how they fund our pensions. The union does and we should.
So, here's the math.
Based on the annuity calculator that you linked, it takes about $2.4 million to get $130K for life and about $2.8 million to get $160k for life. That's a difference of $400k.
Over the last 2 year, about 600 pilots have retired. $400k X 600 equals $240 million dollars. That is what it would cost the company to fully fund the A plan for those pilots.
Now, 1000 new hires need to get to that magic number. If the company has a ROR of about 6%, and they made a one time contribution the first year for the new hire, it would cost the company about $600K to get to $2.4 million and about $700k to get to $2.8 million in 25 years. That's a difference of $100K. $100K X 1000 equals $100 million. $100 million is less than the $240 million it would cost for the last 2 years of retirees.
If the company made yearly contributions, that contribution would be $42k to $48k based on the same ROR. Thats a difference of $6k per year per pilot. $6k X 1000 equals $6 million. $6 million X 25 equals $150 million. $150 million is less than $240 million.
Your 10 year contribution would fall somewhere in between the two examples.
01-02-2018, 08:15 AM
#92
Gets Weekends Off
Joined APC: Nov 2016
Posts: 936
aa
Originally Posted by pinseeker
Now the pension is uncapped? I was referring to your statement that it cost the company big money for a new hire vs a 25 YOS guy to raise the cap to $160k per year.
So, here's the math.
Based on the annuity calculator that you linked, it takes about $2.4 million to get $130K for life and about $2.8 million to get $160k for life. That's a difference of $400k.
Over the last 2 year, about 600 pilots have retired. $400k X 600 equals $240 million dollars. That is what it would cost the company to fully fund the A plan for those pilots.
Now, 1000 new hires need to get to that magic number. If the company has a ROR of about 6%, and they made a one time contribution the first year for the new hire, it would cost the company about $600K to get to $2.4 million and about $700k to get to $2.8 million in 25 years. That's a difference of $100K. $100K X 1000 equals $100 million. $100 million is less than the $240 million it would cost for the last 2 years of retirees.
If the company made yearly contributions, that contribution would be $42k to $48k based on the same ROR. Thats a difference of $6k per year per pilot. $6k X 1000 equals $6 million. $6 million X 25 equals $150 million. $150 million is less than $240 million.
Your 10 year contribution would fall somewhere in between the two examples.
So, here's the math.
Based on the annuity calculator that you linked, it takes about $2.4 million to get $130K for life and about $2.8 million to get $160k for life. That's a difference of $400k.
Over the last 2 year, about 600 pilots have retired. $400k X 600 equals $240 million dollars. That is what it would cost the company to fully fund the A plan for those pilots.
Now, 1000 new hires need to get to that magic number. If the company has a ROR of about 6%, and they made a one time contribution the first year for the new hire, it would cost the company about $600K to get to $2.4 million and about $700k to get to $2.8 million in 25 years. That's a difference of $100K. $100K X 1000 equals $100 million. $100 million is less than the $240 million it would cost for the last 2 years of retirees.
If the company made yearly contributions, that contribution would be $42k to $48k based on the same ROR. Thats a difference of $6k per year per pilot. $6k X 1000 equals $6 million. $6 million X 25 equals $150 million. $150 million is less than $240 million.
Your 10 year contribution would fall somewhere in between the two examples.
Again there is a reason that the IPA and UPS fund their pension differently than we do. Do you know how much they save? Someone does. You think the company should pay X dollars to increase our A Plan. I think they should pay X dollars to increase how much a FDX retired pilot receives in retirement. My method just might be better.
Lots of things for you to edit out of my post so that you can refute what I didn’t say.
01-02-2018, 09:18 AM
#93
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Joined APC: Mar 2012
Position: Two Wheeler FrontSeat
Posts: 1,162
Originally Posted by Fdxlag2
There were certainly improvements to the retirement. You are a liar.
I voted for a contract that has unquestionably the best retirement in the industry. As everyone who says don’t touch my A Plan would agree. It should have been improved in 2006. It should have been improved with either FDA LOA. It should have been improved in 2011. It wasn’t thanks to large voting majorities. We wasted 10 years with no education efforts on part of the union.
I voted for a contract that has unquestionably the best retirement in the industry. As everyone who says don’t touch my A Plan would agree. It should have been improved in 2006. It should have been improved with either FDA LOA. It should have been improved in 2011. It wasn’t thanks to large voting majorities. We wasted 10 years with no education efforts on part of the union.
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