This TA will be ratified
#21
Gets Weekends Off
Joined APC: Nov 2013
Posts: 2,756
I'm pretty young, but I'm pretty dang tired. I can't imagine doing this for so long, and working so much extra.
#22
The YOS(25 Max) x 2%=50% of your High 5 has existed since just after Flying Tiger pilots arrived on the property in August 1989. Prior to that I recall it was YOS(25 Max) x 1.6%=40% of your High 5 plus a COLA of up to 5% a year for inflation. The change from 1.6% to 2.0% eliminated the COLA.
The $260,000 earnings cap came with the first and only FPA contract. I believe it came about because the IRS had a limit of a $130,000 for a defined benefit in a Qualified Pension Plan. Since our max benefit was 50% of FAE the $260,000 assured the benefit would never exceed the IRS limit. The IRS limit is adjusted for inflation, but the contract is not. By the time ALPA arrived the second time and signed their first contract in 2006 the IRS defined benefit limit rose to $175,000 so our earnings cap should have risen to $350,000. Now the IRS defined benefit has risen to $210,000 so the cap should rise to $420,000. Now the sad fact is ALPA has failed to secure the basic benefit that the Fedex Pilots Association secured in 1998 in a parking lot in 1998.
FYI the pension plan was at Federal Express long before the pilots unionized. Almost ALL FedEx employees were covered by the same plan including pilots. The corporation changed the plan for all non pilots around 2007 but the pilots avoided it because we had a union contract. Looks to me that the union has no will to protect the pilot pension.
The $260,000 earnings cap came with the first and only FPA contract. I believe it came about because the IRS had a limit of a $130,000 for a defined benefit in a Qualified Pension Plan. Since our max benefit was 50% of FAE the $260,000 assured the benefit would never exceed the IRS limit. The IRS limit is adjusted for inflation, but the contract is not. By the time ALPA arrived the second time and signed their first contract in 2006 the IRS defined benefit limit rose to $175,000 so our earnings cap should have risen to $350,000. Now the IRS defined benefit has risen to $210,000 so the cap should rise to $420,000. Now the sad fact is ALPA has failed to secure the basic benefit that the Fedex Pilots Association secured in 1998 in a parking lot in 1998.
FYI the pension plan was at Federal Express long before the pilots unionized. Almost ALL FedEx employees were covered by the same plan including pilots. The corporation changed the plan for all non pilots around 2007 but the pilots avoided it because we had a union contract. Looks to me that the union has no will to protect the pilot pension.
Origination date?
Original amount?
Subsequent raises?
The 2006 contract took it from 6% to 7%, but what happened prior?
#24
FYI the pension plan was at Federal Express long before the pilots unionized. Almost ALL FedEx employees were covered by the same plan including pilots. The corporation changed the plan for all non pilots around 2007 but the pilots avoided it because we had a union contract. Looks to me that the union has no will to protect the pilot pension.
#26
I don't have the 98 contract but it started with that contract at 6%. The 401k was pre Union with the low company match. My understanding is that the B Fund is only available in a CBA. The availability of a B Fund was one of the major reasons given to vote for a Union.
#27
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
I don't have the 98 contract but it started with that contract at 6%. The 401k was pre Union with the low company match. My understanding is that the B Fund is only available in a CBA. The availability of a B Fund was one of the major reasons given to vote for a Union.
#28
By your quote "Looks to me that the union has no will to protect the pilot pension"; maybe it can be construed that Management dug in their heels and the Union has gone as far as it could with the current perception of pilot resolve? The company has very good data of our resolve by the way of VBB, AVA responses, number of pilots protecting carry-over, sucking up Open Time, etc. And, our previous MEC did us a disservice by not doing any kind of campaign to build our collective resolve up including a strike vote.
#29
#30
The "B Fund" as part of the overall retirement package in the airline industry was instituted due to the fact that Part 121 pilots were required by law to retire at age 60. Since the "normal" retirement age has gradually risen over the years to age 65, pilots were at a disadvantage during their most lucrative earning years.
So the "B Plan" was designed to make up those dollars lost during that 5 year period. It was also categorized as a defined contribution plan.
Obviously, FedEx would like to transition to an all Defined Contribution retirement system (although they can't do it via bankruptcy like the Legacy carriers did).
So the question remains, how and when does this transition occur through negotiations? I maintain that it's the MEC's responsibility to educate the crew force about the various options that either could or should hapoen in the future. This is a very difficult task, I know, because not everyone's going to agree, but ultimately, the crew force needs to understand the options and the consequences of this change in the retirement system. Sticking your head in the sand and ignoring the elephant in the room is not the right way to go.
This change, or transition if you will, to a new retirement system is probably going to be the most divisive issue we as a crew force have ever faced, but we can't make a smart decision unless we get ourselves educated on all variables and how those changes will affect each one of us. The MEC MUST lead us in this direction, otherwise the company will use this issue to divide and conquer
us like they have on this TA.
I don't pretend to have all the answers, but we better start talking about this like adults, and soon, to make ensure the economic health of our families in the future, no matter when you got hired, and no matter what age you are,
IMHO, I could be wrong.
Champ42272
So the "B Plan" was designed to make up those dollars lost during that 5 year period. It was also categorized as a defined contribution plan.
Obviously, FedEx would like to transition to an all Defined Contribution retirement system (although they can't do it via bankruptcy like the Legacy carriers did).
So the question remains, how and when does this transition occur through negotiations? I maintain that it's the MEC's responsibility to educate the crew force about the various options that either could or should hapoen in the future. This is a very difficult task, I know, because not everyone's going to agree, but ultimately, the crew force needs to understand the options and the consequences of this change in the retirement system. Sticking your head in the sand and ignoring the elephant in the room is not the right way to go.
This change, or transition if you will, to a new retirement system is probably going to be the most divisive issue we as a crew force have ever faced, but we can't make a smart decision unless we get ourselves educated on all variables and how those changes will affect each one of us. The MEC MUST lead us in this direction, otherwise the company will use this issue to divide and conquer
us like they have on this TA.
I don't pretend to have all the answers, but we better start talking about this like adults, and soon, to make ensure the economic health of our families in the future, no matter when you got hired, and no matter what age you are,
IMHO, I could be wrong.
Champ42272
Last edited by champ42272; 09-19-2015 at 06:47 AM.
Thread
Thread Starter
Forum
Replies
Last Post