UPS vs FDX Pension
04-19-2022 | 06:38 AM
#21
Living the SloBus life
Joined: Jan 2018
Posts: 2,178
Likes: 92
So for tax purposes, you will have made roughly $470,000 minimum (including bonus) your final calendar year at FedEx if you qualify for the bonus. The taxman has to love that. Still a potentially valuable option for retiring WB captains, too bad not everyone can even try for it. It definitely makes our sick sell back look better. The max sick you can sell (if retiring at the end of a calendar year) would be 289.5 hours that would payout to a 15 year captain at a pay rate of $361 for a total of $104,500. That captain would also have the option to sell down to 218 hours or 148 hours this year and retire sometime next year when he could sell the rest at a lower tax bracket. Just like FedEx, UPS has financial incentives to fly sick. Good cross talk on benefits. I’m learning a lot.
04-19-2022 | 08:28 AM
#22
On Reserve
Joined: Aug 2015
Posts: 10
Likes: 0
From: On the beach
Close
The Sick Leave Buyback and Advance Notice Plus Bonuses are not considered pensionable earnings under any Retirement Plan.
The Sick Leave Buyback and Advance Notice Plus Bonuses will be paid in a lump sum as soon as administratively feasible but in no event later than 21⁄2 months after the year in which termination of employment occurs
I retired December 31’st, vacation buyback was paid in 2021, bonus was paid late January and is taxed in 2022
No money for the 401k/ b fund was withdrawn or credited for the bonus.
MY Recommendations ( yes I know things will change with a new contract)
Dont wait till the last minute to start educating yourself, ( you would be amazed at the lack of planning I saw)
Run your numbers on the retirement site
if you have no money person call WL at fidelity, he was a fantastic resource.
I’ll answer any questions you have
The Sick Leave Buyback and Advance Notice Plus Bonuses will be paid in a lump sum as soon as administratively feasible but in no event later than 21⁄2 months after the year in which termination of employment occurs
I retired December 31’st, vacation buyback was paid in 2021, bonus was paid late January and is taxed in 2022
No money for the 401k/ b fund was withdrawn or credited for the bonus.
MY Recommendations ( yes I know things will change with a new contract)
Dont wait till the last minute to start educating yourself, ( you would be amazed at the lack of planning I saw)
Run your numbers on the retirement site
if you have no money person call WL at fidelity, he was a fantastic resource.
I’ll answer any questions you have
04-19-2022 | 12:33 PM
#23
Line Holder
Joined: Aug 2007
Posts: 53
Likes: 0
From: MD11 F/O
The Sick Leave Buyback and Advance Notice Plus Bonuses are not considered pensionable earnings under any Retirement Plan.
The Sick Leave Buyback and Advance Notice Plus Bonuses will be paid in a lump sum as soon as administratively feasible but in no event later than 21⁄2 months after the year in which termination of employment occurs
I retired December 31’st, vacation buyback was paid in 2021, bonus was paid late January and is taxed in 2022
No money for the 401k/ b fund was withdrawn or credited for the bonus.
MY Recommendations ( yes I know things will change with a new contract)
Dont wait till the last minute to start educating yourself, ( you would be amazed at the lack of planning I saw)
Run your numbers on the retirement site
if you have no money person call WL at fidelity, he was a fantastic resource.
I’ll answer any questions you have
The Sick Leave Buyback and Advance Notice Plus Bonuses will be paid in a lump sum as soon as administratively feasible but in no event later than 21⁄2 months after the year in which termination of employment occurs
I retired December 31’st, vacation buyback was paid in 2021, bonus was paid late January and is taxed in 2022
No money for the 401k/ b fund was withdrawn or credited for the bonus.
MY Recommendations ( yes I know things will change with a new contract)
Dont wait till the last minute to start educating yourself, ( you would be amazed at the lack of planning I saw)
Run your numbers on the retirement site
if you have no money person call WL at fidelity, he was a fantastic resource.
I’ll answer any questions you have
04-19-2022 | 02:19 PM
#24
Gets Weekends Off
Joined: Nov 2017
Posts: 2,174
Likes: 1
It's important to read between the lines on this "benefit" as well as understand some of the "fine print" that isn't in the contract language above. There's a little more to it than just providing 12 month's notice on your retirement and throwing $110,000 in your pocket.
If a pilot gives 12 months notice, his bonus shall be the lesser of: (in case it's not obvious, this means you need to max out a. and b. to get c. $110,000)
a. 50% of the pilot’s eligible earnings in excess of $520,000 (in his last 24 calendar months as a pilot);or
This says your eligible earnings need to be $740,000 in your last two-years so that when the amount over $520,000 ($220,000) is cut in half, it's at least $110,000.
It's also important to note, that NONE of these eligible earnings can be from sick leave (see 28.F.3).
It's not that difficult for a WB captain to make at least $740,000 in his last two years, but it's not a cush schedule for someone planning to slide off into retirement either.
Better hope nothing unexpected comes up in those last two years that requires significant use of your DSA - otherwise, your bonus will be less than the max.
b. 50% of the pilot’s closing DSA bank balance, multiplied by his last hourly rate, or
Guess what half of a maxed out DSA (686 CH) times our max WB captain's rate is? About $115,000.
So again, someone who wants to make sure they get the full bonus better not tap into that DSA bank too much. Just what we need, a pilot making decisions on his fitness for duty using a financial incentive as one of his metrics.
c. $110,000.
So there will be guys like USMCFDX who don't choose this path and retire with zero sick time. But for every one of those guys, you gotta figure there's at least one (I'll bet wayyyyy more) who's gonna try for that maximum bonus. Bravo to the company on this one. They got a year's warning on a pilot's retirement while they dangled .50 on the sick time dollar to get a retiring pilot (especially a retiring FO) to work a pretty robust schedule their last two years and not take much, if any, sick leave during that same time period.
If a pilot gives 12 months notice, his bonus shall be the lesser of: (in case it's not obvious, this means you need to max out a. and b. to get c. $110,000)
a. 50% of the pilot’s eligible earnings in excess of $520,000 (in his last 24 calendar months as a pilot);or
This says your eligible earnings need to be $740,000 in your last two-years so that when the amount over $520,000 ($220,000) is cut in half, it's at least $110,000.
It's also important to note, that NONE of these eligible earnings can be from sick leave (see 28.F.3).
It's not that difficult for a WB captain to make at least $740,000 in his last two years, but it's not a cush schedule for someone planning to slide off into retirement either.
Better hope nothing unexpected comes up in those last two years that requires significant use of your DSA - otherwise, your bonus will be less than the max.
b. 50% of the pilot’s closing DSA bank balance, multiplied by his last hourly rate, or
Guess what half of a maxed out DSA (686 CH) times our max WB captain's rate is? About $115,000.
So again, someone who wants to make sure they get the full bonus better not tap into that DSA bank too much. Just what we need, a pilot making decisions on his fitness for duty using a financial incentive as one of his metrics.
c. $110,000.
So there will be guys like USMCFDX who don't choose this path and retire with zero sick time. But for every one of those guys, you gotta figure there's at least one (I'll bet wayyyyy more) who's gonna try for that maximum bonus. Bravo to the company on this one. They got a year's warning on a pilot's retirement while they dangled .50 on the sick time dollar to get a retiring pilot (especially a retiring FO) to work a pretty robust schedule their last two years and not take much, if any, sick leave during that same time period.
All very good details to point out. I was just giving the quick and dirty without editorializing but probably should cut and paste the actual contract language. Personally, I don’t see this as a bonus at all for the reasons you stated on each section.
04-19-2022 | 03:17 PM
#25
On Reserve
Joined: Aug 2015
Posts: 10
Likes: 0
From: On the beach
I retired at 60+ a couple of months. 60 was my plan before the age change so I saw no reason to stay.(34+ years was enough)
I did not have any problems or surprises, the union does a great job of guiding/ hand holding.
I moved from the buy up to the purple plan about 3 years ago preparing for retirement, been seamless
I am deferring my pension , it’s about an 11% increase, about $133.00 for each month you defer
minor things..
heath equity charges a $3.95 monthly fee if you don’t keep $2500 in cash in you HSA
Dental insurance for dependents ends at age 24, I thought it would be 26 but not
medical insurance payments due on the first but they don’t auto deduct until the 5th, freaked me out the first month
For the young guys, put all you 401k money in the 401k ROTH, take the tax bite now and grow tax free
for the rest of your life
I will have little income this year so I will be starting my 401k to Roth conversion ,I wish roth 401 had been
an option at the beginning of my career
04-19-2022 | 04:29 PM
#26
Line Holder
Joined: Aug 2007
Posts: 53
Likes: 0
From: MD11 F/O
Good to know about the delay in health care premium payment. I’m currently on the buy up plan but will switch to the purple plan in retirement. Last I checked, buy up was about $2100/mo for two and the purple plan was about 1300/mo. Expensive but much better than going on the open market. For the pension, are you going for the 50% option or opting for life insurance? So many things to consider! It was easier getting hired here than it is retiring from here.
04-19-2022 | 05:20 PM
#27
Gets Weekends Off
Joined: May 2006
Posts: 1,804
Likes: 0
Good to know about the delay in health care premium payment. I’m currently on the buy up plan but will switch to the purple plan in retirement. Last I checked, buy up was about $2100/mo for two and the purple plan was about 1300/mo. Expensive but much better than going on the open market. For the pension, are you going for the 50% option or opting for life insurance? So many things to consider! It was easier getting hired here than it is retiring from here.
04-19-2022 | 05:40 PM
#28
Line Holder
Joined: Aug 2007
Posts: 53
Likes: 0
From: MD11 F/O
I have to clarify this with the union. AFAIK, after retirement you can stay on Cobra for 18 months and then must choose to stay on a company plan or not. Now for the confusing part. Some years Cobra is cheaper than the same company plan and some years its not. Fortunately the gals at the union that answer these questions are very knowledgeable on these topics.
04-19-2022 | 07:46 PM
#29
Gets Weekends Off
Joined: Nov 2013
Posts: 2,756
Likes: 0
I have to clarify this with the union. AFAIK, after retirement you can stay on Cobra for 18 months and then must choose to stay on a company plan or not. Now for the confusing part. Some years Cobra is cheaper than the same company plan and some years its not. Fortunately the gals at the union that answer these questions are very knowledgeable on these topics.
04-19-2022 | 10:51 PM
#30
Gets Weekends Off
Joined: Apr 2013
Posts: 1,626
Likes: 0
How is it not a retirement benefit? I'm using company money to max my 401K instead of mine. My disability sick bank stays nearly maxed out so I have the maximum ready to use should I have a catastrophic health issue.
Thread
Thread Starter
Forum
Replies
Last Post
