Well said. See, this is the problem when you try to change the rules mid game. People have made decisions and plans based on the assumption that the A Plan would be there. If the plan gets improved...even better...be we all assumed FedEx would remain in business and we would have our guaranteed benefit. With that baseline, we all made decisions...decisions on QOL vs money...decisions on upgrades...decisions on how to fund other retirement investments.

Just a reminder that FedEx is not in bankruptcy and they plan on paying me the retirement that I signed up for. It is not perfect by any means but it is the one I signed up for. What continues to get me is the company is not trying to default on the pension obligation...my MEC is!

I agree that the A Plan has its faults and maybe the company will never improve it. But that does not mean you freeze it...you supplement it and you definitely don't pull the rug out from under guys in the middle who stand to lose money as a result.

Flat model and the VB plan?

What?
UPS runs 2 pension calculations, 1% FAE or the Flat Dollar Amount times YOS. In a pair of years, the FDA Pension value for a Capt with 30 years of service will be 126k...should you happen to be retiring as an FO, FDA value is approx 100k.

The VB plan progs out at something way, way lower than NP. Doesn't even keep up with our current 130k indexed to inflation.
The ONLY thing it's better than is our unchanging 130k Pension.

Every year our Pension drips value, drop by drop, inflation is relentless.

So we do a Flat Dollar Plan (that supplements our current plan, ala UPS) that guarantees anyone who retires before CBA 2030 $150K instead of a $130K. Or you can sign up for the VB plan and retire a billionaire at age 65. You get to choose.

The point being one size does not fit all. Screwing 40% of us so those with over 25 YOS get a little something extra and those starting out get more than 130K is not the way to go.


PS, I think the UPS 1% plan is capped at 300K FAE and 30 years, but I could be wrong.

Why Yes, I did read your post.
Assuming you're referring to the numbers you posted, which I can't quite make sense of.

Can't quite figure out what equipment you're on Earning 175k\year at 850 CHs.

And, can't quite figure out how you figure you're Losing Out.

As a rehash,
you're current high 5 is 130k. Your projected future A plan Pension is 88k.
The VB numbers you provided were reduced to a projected 75k, to account for your expected reduced flying for QOL reasons.

So, math in public here, but you're accumulated A plan pension is 10% of your current FAE, or 13k
Your projected VBP is 75k
So your combined projected pension is 88k.

While I applaud your avoidance of the all mighty $$, I would encourage you to return to a full work schedule sooner rather than later.
Extrapolating out you are foregoing tens of thousands of B fund accumulations, and even worse, approaching a time in life where many of your peers have found themselves sitting on the sidelines-due to unexpected health issues.
You are an accident away from never operating as a pilot again, and while our disability coverage is great, it's always better starting it from a higher value.

That being said, an extra day or two at home can be absolutely priceless.

What are you talking about here?

But upping the Pension to 150k is only an extra 4k\year...wait, it's worth doing if it's an FDA value but not if it's a VB calculation?

And why would we want our Next CBA to run through 2030? Are you assuming it's going to take 4-5 years to get that 6k FDA value? And is the FDA value the same for FO's here at FedEx or is it the roughly 75% value UPS has?
6k per year for Capts (assuming you wanted it capped at 25)
4.5k for FOs

OK, now I'm confused

Ok make the flat dollar amount 250k, you happy? You purposely ignore the point that the VBA does very little for most of the postal demographic but quite a bit for everyone else, if you believe the magic fairy dust numbers. You are confused because you want to be confused.

The CBA 2030 was just a place holder. If you look at UPS the flat dollar amount it turns into a pumpkin several years after their current CBA expires.

“Expiration” of the flat dollar amount is due to IRS and/or ERISA regulation (forget exactly). Without a successor CBA at year end 10 years after going into effect (ie. 31 Dec 26 following CBA effectivity on 1 Sept 16), DB benefit reverts to contractual FAE.

As I posted upthread, matching your current $130k @ 25 YOS max defined benefit would require $5200 per YOS. This type of retirement could provide some funding relief to FDX, while providing a means for higher benefit via negotiation of a higher YOS rate or a YOS cap higher than 25.

Also, I understand one need only fly one revenue flight as CA to earn CA retirement at UPS; you don’t need to be a CA at retirement. There’s some former 727 and DC8 CAs who are now very senior PFOs who will get a CA retirement benefit when they punch.

Now I’m confused? An A fund that pays out $150k is a 20k gain.

I’d love the option that he proposed. Take the Flat dollar $150k at 25 years (or 6k/year if you retire with less) or elect to freeze what you have and transfer to the VB plan. Keep the same high five formula. Sold.

Makes most people happy. Very simple idea, but would be a yes for me. I’d take the FAE. If I left with 20 years, I’d walk with $120k. Good enough for me.

For the life of me I can't understand the Angst of this plan will benefit X demographic.
A nameless faceless them.
People who took My Capt Slot away when the Age changed...well, news flash, that nameless faceless demographic is long gone now.

And there's not a proposed plan out there that Won't benefit the top 10, 20, 30% of the crew force. Whichever demographic it is that has your knickers in a twist will benefit from Any Improvement in our A plan. Whether it's a High 5 Earnings Cap improvement, an Extra 1% for YOS over 25, an FDA Calculation.

Doesn't matter what it is, they'll benefit.

The question is how does it Benefit You. It's a Pension, not a Retirement cake with only so many pieces. We don't have to cut pieces of the cake into smaller pieces if someone with 25 YOS continues working.


As to the Newhires being rich in 30 years because their Pay is in the 650-800k range...well, if it's Not that high by then we've Sorely failed in negotiations. If we just stay on the 3% slope, pay should've more than doubled by then.
And personally, as Interest rates return to their norms--I'm thinking Inflation isn't going to be the nice tame relatively stable 1.5'sh% it has been recently...it's going to be closer to 3 during our next S6 negotiations. So, for me, thinking the min pay slope is going to be in the 3.5-4.5% ball park