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New Video-Every $ Earned & Yr Worked Matters?

Old 12-22-2017, 07:02 PM
  #41  
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Originally Posted by kwri10s View Post
Here's another potential turd.

If the New variable annuity plan goes into effect as explained ish in the latest video/Q&A, we will be using average earnings. Guess which other group will get screwed. Every pilot that does military duty on mil leave. Any duty done during military leave will lower the average earnings, thus lowering your maximum possible pension. Right now mil time still counts towards your years of service.
This comment is specifically on the USERRA protections of retirement plans. Nothing else.

USERRA protects an employee with a pension plan (A, B, etc) . UAL pilots won a court case that used average hours if greater than guarantee to calculate B Plan credit. Previously, UAL only paid on guarantee.
At very least, average hours lost at FedEx while in military service would have to be restored as if you had not left and credited same.
Cheers
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Old 12-22-2017, 07:15 PM
  #42  
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Just remember that not all of us have a military retirement.

Don't accept a lessor FedEx retirement plan because some of us (not me, by the way) already have a military retirement and Tri-Care.
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Old 12-22-2017, 07:26 PM
  #43  
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Originally Posted by SaltyDog View Post
This comment is specifically on the USERRA protections of retirement plans. Nothing else.

USERRA protects an employee with a pension plan (A, B, etc) . UAL pilots won a court case that used average hours if greater than guarantee to calculate B Plan credit. Previously, UAL only paid on guarantee.
At very least, average hours lost at FedEx while in military service would have to be restored as if you had not left and credited same.
Cheers
SD
Under current A plan, how are a Guard/Reserve pilots "Pensionable Earnings" calculated each year?

Is there some "plus up" due to the trips missed while on military leave, or is it just based on the trips a pilot actually flys?
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Old 12-22-2017, 11:35 PM
  #44  
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Originally Posted by DLax85 View Post
Under current A plan, how are a Guard/Reserve pilots "Pensionable Earnings" calculated each year?

Is there some "plus up" due to the trips missed while on military leave, or is it just based on the trips a pilot actually flys?
Imputed earnings.
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Old 12-23-2017, 07:42 AM
  #45  
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Originally Posted by Nightflyer View Post
Just remember that not all of us have a military retirement.

Don't accept a lessor FedEx retirement plan because some of us (not me, by the way) already have a military retirement and Tri-Care.
Agree. What we do with our FedEx retirement has absolutely nothing to do with military retirement.

That said, consider this. A military retirement (I am talking about the pension not the Thrift Savings Plan) is looked at as a good thing to have. Why? Because (1) it starts paying as soon as the service member retires regardless of age, (2) is adjusted every year for inflation (COLA), and (3) is backed by the US Government...in other words it is secure.

Now, let's compare that to our current A Plan:

(1) Assuming guys are going to work until at least age 60, it also starts paying out as soon as the pilot retires.

(2) It is not adjusted every year for inflation which, no doubt, is a problem that I hope we can fix. However, a $130k retirement is still much better than a military retirement. An O-5 or O-6 with 25 years of service gets about half of that.

(3) Our A Plan is backed by FedEx. Could the company go bankrupt...sure, but I feel pretty secure knowing that FedEx is responsible for funding my pension.

My purpose here was not to compare a FedEx A Plan benefit with a military pension. My purpose was to simply remind us that a $130k guaranteed pension benefit still has tremendous value. Could the plan be better...sure. Could it be improved...I hope so.

But we better think twice before we voluntarily freeze one of the best (if not the best) benefits we have.
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Old 12-23-2017, 08:41 AM
  #46  
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Originally Posted by mempurpleflyer View Post
But we better think twice before we voluntarily freeze one of the best (if not the best) benefits we have.
The plan is frozen. No matter how much you made last year, the previous 5, or the next 25, you will never (as things currently stand) get more than 130K. No inflationary increase (COLA) nothing. We would have to have deflation to "win" under our current plan, very, very unlikely. Most WB captains are making around 300K if they are not pushing themselves for more. That means today, without any changes and incomes based on current rates, a pilot retiring now getting at best 43.3% of his final earnings from the A plan, and thats if he is getting 130K and making only 300K. Most likely, said pilot is getting a smaller percentage than that.

I have flown with many pilots who just wanted their pension in the B plan, totally under their control, in their name and not subject to loss such as was seen by our legacy brethren not so long ago. As things stand, they are getting their wish. The question is...if we don't find some other vehicle to supplement the B plan/401K funds, will 8% now and 9% in a couple years be equivalent to retirements at UPS, UAL, DAL and SWA?
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Old 12-23-2017, 09:22 AM
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The point is some of will never see the 130k your A plan is frozen at. Mine is still building at 2% year and I don’t want to see it frozen at 90k.
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Old 12-23-2017, 09:59 AM
  #48  
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And that is $5200 increase per year until you hit 25yos assuming high five at 260K and no reduction for spouse. What is it going to take to give you 25 minus yos X $5200 X years you will live after retirement? Thats what you want the union to set as a floor for any change in freezing the A plan.

This is the great balancing act the union faces dealing with the frozen A plan benefit. Do nothing, lose value to inflation and lose value relative to your final earning. Do something and freeze your accrued benefit and some (depending on age when hired and seniority) either get a (relative) windfall by collecting three Fedex retirements (accrued A plan, B plan savings, and new benefit) where for some the A benefit is maxed or close and they still have a bunch of years of hub turning their way to retirement happiness build on the new plan. Others with less years before getting out don't get the (greater) benefit of the new plan, mostly the frozen A plan based on their years on the property at the time of the switchover.

Not sure where you will stand or how the union will address this but consider that some of us "lucky" types who have maxed out our A benefit have given and continue to give YOS for NO improvement in benefit. A lot of 30 plus year pilots maxed out and their win from contract 2016 was a 1% increase in the B plan money (roughly $3000 per year) and a IRS cap limiting that!!

We all have our issues with the retirement as it stands, at least you might see an improvement, many of us only got coal in our stocking from the last contract.
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Old 12-23-2017, 10:12 AM
  #49  
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Yes whoever negotiated the A Plan screwed all you poor suckers who got stuck being WB captains for 10 extra years . My hope is these talks go no where and in the next contract we vote in an option c to supplement our A Plan along the UPS Model. Something like a $100 a month x YOS (no cap) for every pilot on the property. To keep it reasonably cheap, like UPS, it would have to be renegotiated every contract.
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Old 12-23-2017, 11:00 AM
  #50  
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Originally Posted by Fdxlag2 View Post
Yes whoever negotiated the A Plan screwed all you poor suckers who got stuck being WB captains for 10 extra years . My hope is these talks go no where and in the next contract we vote in an option c to supplement our A Plan along the UPS Model. Something like a $100 a month x YOS (no cap) for every pilot on the property. To keep it reasonably cheap, like UPS, it would have to be renegotiated every contract.
Wow, you want to shaft all the guys who will retire under this contract, so YOU will get more? Who's the divisive one now and BTW not everyone was stuck as a WB Captain for a extra 5 yrs. To top it off you voted for this marginal contract. Who knows what we might have achieved if the vote would have went the other way.
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