Airline Pilot Central Forums

Airline Pilot Central Forums (https://www.airlinepilotforums.com/)

- FedEx (https://www.airlinepilotforums.com/fedex/)

- - 50% +1 (https://www.airlinepilotforums.com/fedex/143591-50-1-a.html)

Quote:

Originally Posted by max8222 (Post 3660932)

Many of our younger pilots that I have flown with do not want an A plan. They want a bigger B fund with cash over cap.

So there are already two tribes.

Pensions are dumb for those who have a long time left on property and have a nasty tendency of going away. The MBCBP is uber conservative and has serious unanswered questions.

Yes, as a junior pilot I do not want a pension. I want a 20% CoC B-fund. If this garbage gets voted in, I most certainly will be a fan of terminating the A plan for a bigger contribution B plan on every negotiation after this.

Quote:

Originally Posted by TomAce (Post 3661324)

…And to add to the split, as a junior pilot I do want the A Plan. I would prefer that the A Plan not be voted away or axed as I believe in the fundamental legs of retirement (pension, social security, 401k, savings) are being hacked away and we will be left with just one leg to lean on.

Quote:

Originally Posted by IFartInYourSeat (Post 3661334)

In 25 years, the $169k pension will have roughly $80k in purchasing power before taxes, and it's insured at pennies on the dollar by the PBGC. It also can't be passed down to heirs. To each their own.

That said, had they froze the $130k pension, and increased the B fund to 16% with CoC, I'd probably vote yes.

Quote:

Originally Posted by oncewasgood (Post 3661341)

Let this be another example of an individual who has zero comprehension of our retirement. The “pension“ is not frozen at 169K. That is the point of the new pension. The legacy FAE pension bump is for those with smaller timeframes left. In 25 years, the value of the new pension will be substantially greater than that. You know, because inflation and all…. I am sure glad you are the minority. Ask any financial advisor and he/she would say you are a moron to advocate away a pension plan for just a DC plan. Diversity is paramount in generating long term wealth.

I have multiple financial licenses and years of data analysis job experience. Be careful who you insult on the internet. My comments were directed at the improved legacy pension, not the MBCBP. I've railed on the MBCBP in multiple other posts.

The new "pension" is the MBCBP. It's a DB in name only, as only contributions are guaranteed. I've posted multiple times why I would prefer a higher B fund with CoC spillover option into a MBCBP ala Delta than our current TA.

The MBCBP is certainly an improvement than a legacy pension for junior pilots. So if this is voted in, at least that is a plus. But without cash over cap, it's low target rate, the company being the fiduciary, the risks for it are not zero. I question it's long term benefit matching what is being proposed. If it had CoC, I would probably vote yes. There has to be some risk management to IRS policy other than, the company and ALPA will renegotiate if IRS limits stay flat for years.

There's math, forecasts, and personal opinion. I understand why people love pensions. But there's also valid reasons for wanting as much money in your name as soon as possible instead of a traditional pension.