Stan446

Otter is just making a false statement to try to validate his point. If Otterbox was my fund manager, I'd fire him if he thought 3.5% was realistic. T-Bills used to pay 3%, lol. Its easy to look at fund history and easily mix your investments and make 7% or better. You can pick a Vanguard fund on your own and look at the life of the fund and get something that makes 10%.

There may be better options for the retirement but how are you going to fix it to everyone's satisfaction? The NC has been given a goal and came up with a solution. Having 2-3 million in your defined benefit plan if you start as a new hire is easily attainable at a 4% return, upgrading to Captain at 15yrs and working to 65. And the contributions will increase as the pay rates change. New hires are going to have several million in the MPCBP and should have the same or more in their 401K. New hires are going to retire very wealthy, more wealth than someone who got hired 25yrs ago.

HvypurplePylot

You will not be able to pick the investments for the contributions to the MPCBP

StarClipper

My question to the NC is how does this new plan take in to consideration someone who went out on LTD? With our current plan, a pilot can go on LTD then come back just in time to get their high 5 and full retirement. You can’t do that with this plan.

threeighteen

but that’s not good for the company, and we have to be reasonable here ok?

NotMrNiceGuy

Delta has a target of 8.5%. It’s basically just a mutual fund for investment purposes. Ours should be more aggressive.

Flying Boxes

AS I UNDERSTAND THIS

Delta’s MBCBP is a defined benefit financial vehicle that pilots can opted into with their “cash over cap” from their 401k that exceeds the IRS limit.

So the Delta MBCBP is a defined Benefit plan for extra savings beyond the IRS 401k limit. So being aggressive with a secondary retirement plan that is above the IRS limit.


Our B Fund is limited to IRS limits because it is a 401k contribution.

The MBCBP in our TA is a defined benefit plan that FedEx (and union if vote yes) limits contributions to IRS 401K limit because they don’t want (have) to pay an extra penny that could go to a dividend or stock buyback.

IRS limit is 3.4 million. Divide that by 66k and the answer is ~51 years to maximize company contribution. That’s at a pay scale of 330k or over. So add another day 8-10 years.

Even with increases to 401k limit, we are no where near maximizing our new DB plan.

BlueMoon

go read the dang TA. It’s literally written down how people on LTD will be handled.

StarClipper

I read the dang TA! So since you’re so versed on it, dumb it down for me please

DLax85

….and it’s a step back. Remember, the MBCB Plan is funded like a Defined Contribution Plan - “every year counts” - even those when you are out on disability. High 5 concept will be dead - and that’s where the current A Plan provides a much better QOL.

New plan - work harder for longer - and hurry back from your disability - because your retirement depends on it!

In Transparency, Integrity and Unity (for Everyone),
DLax

DLax85

Pilots tied to the MBCB Plan need to look forward, not backwards. You mention Vanguard - please research their current 10-year forecast for an equity index fund and a bond index fund. Apply a 60% equity/40% bond asset allocation. Now, let us know the Vanguard forecast rate of return?

Me thinks Vanguard will disagree with your 7-10% forecast

In Transparency, Integrity and Unity (for Everyone),
DLax