DLax85

Thanks for the data. It’s always good to know our history

What was the B fund percentage under Flying Tigers?

What was the B fund in the first contract in 1998?

Adlerdriver

-8%. So, really we’re doing much better it might appear at first glance.

trashhauler

It was 6%................................................ .....................

Overnitefr8

But we also gave up profit sharing in the first contract

kronan

A better evaluation of the decline in value is what is the worth of 260k 98$$ today,
and an Inflation Calculator would put that at 397.4k.

Or consider IRS Pension Limitations. Our Pension payout is 130k, and at one time there were Qualified\Non-Qualified Components.

Most Recent IRS Qualified Pension Payout was 220k (or the equivalent of 440k FAE)

https://www.irs.gov/newsroom/irs-ann...18500-for-2018

FoxHunter

I don’t recall the B fund rate at Tigers, May have been 6%. It was called the INVEST PLAN but contributions were halted with the arrival of Steve Wolf in 1986. Thanksgiving weekend resulted in the collapse of the effort of the demanded pay cuts. Tiger 747 Captains earned around $170,000 a year. After the cuts I recall the max pay was $103,000. In my case I earned $111,000 in 1984 as a 747 F/O. In 1987 after the paycuts I earned $62,000 as a 727 Captain. The 727 Captain hourly rate was the same as a 747 F/O, but the 727 paid no credit hours, just hard time for most of the flying. The 727 operated under a LOA. The only upside was pensions were based on the old pay rates. Then the luck was we were bought by Federal Express, now known as FedEx Express.

FoxHunter

That is correct! I was shocked to read to see no increase in the last contract. In 1998 the $260,000 resulted in the IRS max qualified benefit. Time has seriously eroded that benefit. No doubt PC still has a big grin on his face.

PurpleToolBox

FedEx pilots are fools if they negotiate away their defined pension.

In exchange for accepting the VA plan, they'll ask for something the company took back in the last contract (like lay flat seat provision) and market it as a complete win. Or they'll just low ball the VA plan and present the worst case scenario first ... it's the FDX ALPA way.

As I see it, to even consider the VA plan, I would need to see industry leading language and increases in all sections of the contract; compensation, B-fund, profit sharing, vacation, jumpseat, reserve, etc.etc.

Pension risk has value and that value is worth more than the POTENTIAL to earn more in retirement. FedEx owns the bill associated with that risk. We shouldn't assume that risk unless it is overwhelmingly in our favor to do so which means the company is never going to accept my offer. But they'll accept ALPA's low ball offer and we will forever be known in the industry as the suckers we are.

StarClipper

I share your sentiment

kronan

VA plan IS a Pension, it's just Defined Differently.
But it is Still a Defined Benefit Plan

For Something that a few on the Internet define as a GiveAway to The Company...Company sure doesn't seem to be in any hurry to Accept this So Called Gift to the Man