Is the 12% capped? So if a UPS pilot makes 400k does he/she get 12% of 400k?

Yes, it is capped at the 401(a)(17) compensation limit which is currently $285k.

The difference between 12% and 9% DC at the current 401(a)(17) compensation limit is still $8,550 more company-funded dollars into one's MPP toward the $57k 415(c) defined contribution limit.

Understood, but whats the lower A fund value compared to FDX. As well as the 5 year difference to get the full benefit. Many that are hired in mid to early 40’s (retired mil) wont even get to 30 years. I bet a majority are not hired at 35 or younger and all those wont be able to accrue the full pension. So my point being on paper both UPS and FedEx are probably equal in total retirement benefits from a cost or actuarial perspective.

The value of our combined retirements is extremely similar.

I was more addressing kronan's point of 'they didn't improve their B plan'...there was a reason for that.

Just my point of view but an extra 5 years is not extremely similar.

I think the bigger point is that UPS has made respectable gains to their A fund while we have done zilch. It’s a line in the sand for us. FedEx can’t afford to increase our A fund, but has no where near the pension liability of UPS.

Were you on the Negotiating Committee in 2015? If not, my apologies, you repeat their mantra well.

It’s no surprise that the exact soundbite of “their line in the sand” is repeated by so many on property - the NC repeated those exact words for months as they panicked with $0 in our negotiating fund coffers, while desperately selling us their product.

No, I wasn’t on the negotiating committee. I was just repeating the ridiculous phrase used by ALPA. I was an adamant “no” voter, based primarily on lack of A fund improvement.

The company should use “the line in the sand” strategy more often. We’ll just fold and give up.

I’m not necessarily a huge fan in UPS retirement plan, but somehow they’ve made significant improvements. If they continue to make gains, they’ll soon overtake ours. They’re not far now. I’ve heard from our union that funding the pension plan is incredibly expensive. I just don’t see how making some cost of living improvements is going to bankrupt the company.

They have a cash balance plan which is much less “expensive“ from a liability standpoint. This was literally covered just this last week in one of the ALPA Podcast from our Retirement committee. We have also made gains in our B plan over that period of time. So if you want to go to a cash balance A plan i’m sure the company would be all ears since thats what all none union employees were converted over to.

You me the latest hard sell retirement 'education' form FDX ALPA?