For me, that is the most troubling provision that the final 2 year's earnings doesn't include any income earned from RSA/DSA.

 

Yes --- but the TA encourages even more --- at 50 cents on the dollar

We've agreed to help solve their manning problem at a discounted rate

 

As far as the company's liabilities go, Captains not doing any extra and having over 25-years at the company, are earning close to 50 cents on the dollar already. They'd receive 130k a year from the company just for retiring--so many are actually "earning" less then FO pay. With this career end DSA payout, the company is paying them close to what they actually cost.

Not trying to be devisive, just doing the math so please correct me if I'm wrong. Even If a 25-year captain makes 300k a year--they work until June 6th just to match their already earned pension. So......they told the company what they are worth.

 

Sorry, I am not sure I get your point.

Assuming a Pilot is a WB Captain and already has his/her High 5 and is already 60.

You seem to be wondering why they won't retire.

First off it is an individual decision as everyone's personal circumstances are different.

I do not get your working at 50% Theory.

Let's assume the above. 25 years with High 5 at WB status.
If a Pilot continues to work, he she gets an additional $18,000 in the B-Fund. He/She Continues to get Healthcare at Active Duty premiums.
Keeping the same Medical Benefits will cost x 4 when one retires.

A 25 year Pilot gets 36 days vacation and 72 hours of sick leave.

One can decide to use all of it or none of it. Either way if they decide to use it, they can get a lot of time off at 100%.

If they decide to not use it, they can possibly get an additional $18,700 in Sick Buy Back and with all the vacation buy back they can get even more.

So your Theory of Pilots working 50% on the dollar of $130K doesn't really ring true.

The bottom line is for the more Junior half (notice I didn't say younger) There is NO $$ incentive for a Pilot to retire. If MGT came up with an Increase in Retiree Medical plan, a Multiplier to the A plan or COLA, A real Retirement Bonus that was simple as, "You promise to retire here and you get $$$", without not having to forge Sick and Vacation days.

If that is what your point was than I'm with you.

 

The problem with your math is that if a Capt retires, yet still needs/wants to spend like he's making $260K/year...He needs to withdraw the other $130K/yr from his 401K or other sources.

So, yes, he could be earning $130K for doing nothing...But, he would be drawing down an extra $130K of his own money to make up for what he could have earned. Not spending your own money could be thought of earning that same amount.

You know...Like Ben said, "A penny saved, is a penny earned."

 

Actually, there's a problem with YOUR math.

You have to look at how that 260K was spent and then you'd realize that your Capt won't need ALL that 130K from "other sources." When you retire, you drop a LOT of expenses that 260K went to pay for: No RSP/OSP deductions, no personal savings plan, no medicare deductions, no social security deductions, no ALPA dues, and, if it's played right, the mortgage payment goes away about this time. Your taxes are less. And the bar tab goes WAY down when you no longer have a crew. Social Security starts coming in.

Remember, that "penny saved" came out of the 260K and wasn't spent on lifestyle. Therefore, you won't have to replace those pennies out of your retirement income.

 

Wait ... you mean ... no more socializing with best friends?!?!

Are you telling me retirement's not all it's cracked up to be?






.

 

I'm telling you it's far better than the doom-and-gloomers here would have you believe. I don't for a moment wish I'd worked the extra 3 years for the income that would be in it. And the outgo has a far different flavor.

But I knew I could trust you to pick on the least significant point, and the one point aimed at humor. That's why I included it.

 

I sincerely hope you're enjoying it, and that you'll enjoy it for a very long time. And if we ever have a chance to cross paths, I'll make sure you have no bar tab.


And I hope to join you in retirement as soon as possible. When that will be depends to a great extent on the outcome of this TA vote.





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Who is this captain, what company does he work for, and what is his seniority number? I'd like to bid with him.

Disregard. Our schedules, under the new TA, will never allow us to have a beer anyway.


Pipe