New Variable Benefit Plan Modeler
So, how is the modeler working out for everyone in "the middle"?
I was hired in my mid forties and, using historical rates of return, the model (not using the stochastic assumptions) shows that I will do 2% better under the variable plan. 2%...and I assume basically all of the risk. Changes to about 6% if I stay until 65. But, that is one of the problems with this plan...I have to work longer to really see a significant benefit increase. Great for younger guys with lots of years to go and for those who have already maxed out their A Plan benefit. What about the middle? |
Originally Posted by mempurpleflyer
(Post 2596891)
So, how is the modeler working out for everyone in "the middle"?
I was hired in my mid forties and, using historical rates of return, the model (not using the stochastic assumptions) shows that I will do 2% better under the variable plan. 2%...and I assume basically all of the risk. Changes to about 6% if I stay until 65. But, that is one of the problems with this plan...I have to work longer to really see a significant benefit increase. Great for younger guys with lots of years to go and for those who have already maxed out their A Plan benefit. What about the middle? |
Originally Posted by GoAroundFlaps
(Post 2596912)
I haven't been sent the link yet can you post it here or send me a pm?
My guess is you don't have an updated email on file so you should send the FDX ALPA communication folks an email and request the link. They will verify that you are in fact a FedEx Pilot and not FedEx Management.;) |
This is part of the verbiage that you agree to prior to using the modeler.
Various assumptions have been made for the purpose of making the product operational and not as a representation concerning any final plan design. Estimates shown in this product rely on future demographic and economic experience conforming to the underlying assumptions and methods. To the extent actual experience deviates from the underlying assumptions and methods, or there are any changes in plan provisions or applicable laws, the estimates would vary accordingly. As such, users may not rely on the estimates as their actual retirement benefit. Think about what this is saying. Cheiron is already indemnifying themselves from the rosey picture the union is painting. |
Here’s mine...
Hired at 43 Currently 48 High five (I’ve only completed five years: $130,000) Annual Salary $175,000..QOL bidder with a kid in high school Career increase rate Retire at 60 Historical return rate Existing plan $88K VBP $84K (adjusted to ~$75K see below) Max Stochastic $106K (adjusted to $95K see below) Keep in mind, for me, the model uses an assumed credit hour per year of 1000. I average 850 so I have to further reduce the VBP Future Service Pension number by 15%. Assuming the CH reduction is linear, that would put my worst case VBP number at ~$75K. I fall well short of the existing A Plan. I don’t know what to think of the stochastic numbers. Their explanation makes sense but without the assumptions behind them, I’m skeptical. That number for me (my QOL 85% CH adjustment applied to the Future Service Pension and all stochastic assumptions) is $95K. That means in the best case I improve by $7K per year...but hey, I get to work harder to get less than what I already have so there’s that. So much for my plan to get my high five and then downgrade so I don’t die at 68. BLOB: I have $88K as is with our existing plan. The VBP will range for me from $75K-$95K if I continue to work as I have been. To get an equivalent amount I will have to work harder all the way to the end. What about LTD? Mil leave? The middle guys are the minority. All pilots will be made whole is what we were told by the guys that can’t even write bullet proof lie flat seat language. Fool me once... We’re screwed. |
Shouldn't your name be GoAroundSetPower?
|
Garbage modeler.. Was this thing programmed by a High Schooler?
|
Originally Posted by FrankTheTank
(Post 2597252)
Garbage modeler.. Was this thing programmed by a High Schooler?
And it looks like the modeler shows a hard freeze. So are they going to give up on fighting for a soft freeze for those who don’t have a high 5? |
Needs to be a choose your own adventure.
Pilots on property can choose to stay with current 'A' plan or select to enter the new 'VB' plan. All new hires are put into the new 'VB' plan. 'A' plan slowly goes away as people retire/die. That's how people in the middle are made whole, by giving them a choice. |
Saying the guys in the middle should get a choice does not mean it will be a good choice.
If this garbage passes, everyone should have the chance to swap to the VB plan at a time of their choosing. |
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