Boggles the mind how someone who has access to the same information can get it so completely wrong.

TonyC
Good explanation on how it's a massive Group pie...not a pie where one slice is bigger than the other leaving someone to go hungry.
(One would almost think you're in favor of the VB plan...instead of simply in favor of providing accurate information.)

One misconception though, is the percentage of payroll that would be used to fund the VB plan. All that I can recall seeing PM say is that we have a percentage in mind and we think it's very workable and manageable for the company.

Bottom line is the VB plan is an exercise in Cash flow funding. At the very beginning of the plan, actual distributions will be very low in comparison to the funding coming in.
Main difference is that the $$ would actually flow in each and every year.

 

Having no control of the Investments is a Feature, not a bug. Last thing in the world I'd want would be having my Union in control of the investments. Much rather have the Pro's FedEx has hired.

Goodness knows the FedEx returns on balanced Investments have been much better than the majority of Mutual Fund holders who've chased performance and ran from the market. Buy high, Sell Low is the typical Pilot Investment mindset is it not?

 

Can’t we at least explore profit sharing and an increase in the B plan? This VB Plan isn’t worth the risk.

 

There is NO floor.

 

Knowing that inflation erodes the A plan buying power, if enacted wouldn't your plan force people to work harder to help their retirement? (More so for the increased B plan, but to some extent profit sharing.) Working harder seems like a gripe of many who oppose the VB. It seems, at least in terms of a beefier B plan, in addition to working harder, it would have people upgrade sooner. This too seems like a gripe I have read about the VB Plan.

 

The difference is the B fund is "my" money, as opposed to a "pancake". Also, the B fund increases in value over time, and the value of my "pancake" is wholly dependent on the state of the stock market on the day I retire. I can control how my B fund is invested, but I have no control over my pancake.

 

I agree 100% about not letting the union control the investments. When I said we, I meant the individual pilot.

I wouldn't call just under 7% a stellar return, though it is probably better than how most individuals do on their own.

 

I think the point is that we keep the current DB plan, with an increase if we can get it. If not, significantly increasing the B plan keeps us diversified between a defined benefit that is not subject to market risk for the pilot, and a B plan that is.

The company has over $30,000 per pilot that they could contribute to the B plan before hitting IRS caps. That could go a long way to bridging the inflation gaps.

 

... the arrogance of our modern day reps, arrogance for which there is no basis. Keep selling this plan; the harder the sell the bigger the clunker.

 

We already have pilots hitting the 415(c)(1)(a) contribution limits. That makes the effective rate of their "B" Plan ZERO percent for the rest of the year. If we're going to put effort into improving the "B" Plan, we have to talk about Cash Over Cap features. When we get to that point, we may as well switch the conversation back to pay rates.






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