R&I Math ... X * 1000 =
#71
Current projections listed here:
http://fdx.alpa.org/portals/26/docs/...tributions.pdf
Those projections will be compared to actual expenditures once the year is complete. If the actual expenditures are different than the forecast the difference will be accounted for the following year with a max increase of 10%.
http://fdx.alpa.org/portals/26/docs/...tributions.pdf
Those projections will be compared to actual expenditures once the year is complete. If the actual expenditures are different than the forecast the difference will be accounted for the following year with a max increase of 10%.
You seem to be OK with the current projections on the increase to the healthcare where we have a defined % but no numbers to relate that % to, which could end up costing a lot.
But on the flip side you want to have definitive projections on the inflation rate so as to be able to make a better argument concerning our retirement.
I am probably missing something; but I dont quite understand opposing conclusions for basically the same argument.
And I will bet a Happy Meal that the 2015 rate of inflation will be exponentially > .1%.
#72
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There's a huge difference between PROJECTION and PROTECTION. Right now we have proTection that the rates will not rise more than 6% every year. The Negotiating Committee (the same group that believes 3% + 3% + 3% = 8%) is giving us proJections. There is NOTHING to proTECT us if those proJections are wrong.
If the cost of health care suddenly rises, as it has every year since the passage of the Affordable Healthcare Act, and the 18% cost share for a Pilot and his Family on the Buy-Up plan is $800 instead of the currently projected $407.31, there's nothing we can do about it. Even the $407.31 was $121.74 (42%) higher than the maximum it could be under the current CBA, or 50.7% higher than our highest possible 2016 rate (2016 CBA limit: $270.34, Plus 50.7% equals $407.31, 2017 Estimated Projection). But if the cost of health care rises more, there's nothing to protect me in 2017 from having to pay more. NOTHING.
Example: As soon as practicable in 2018, the total projected per capita costs for all pilots and survivors paying active rates for 2017 will be compared to the actual costs for 2017, and if the actual costs are more or less than the total projected costs (outside a corridor of +/-3%), the difference times the 2017 contribution percentage shall be applied to 2019's contributions for all pilots and survivors paying active rates participating in 2019; provided that the total monthly contributions for any coverage tier will not be more than 10% over the monthly contributions payable for such coverage tier for 2018.
If it is determined in the 2018 "after year" analysis of 2017 actual costs that the Projected Costs were only 3% more than the Actual costs, no corrections will be required, no adjustments will be made, no refunds arranged. By that time, the rates for 2018 will also have been established, and they will be limited to 19% of projected costs and capped at 10% more than the 2017 rates. As long as the difference between projected costs and actual costs remains within the 3% corridor, no corrections will be made.By the way, who here has not heard that our B Plan contributions will be increased by 28.5%? Our R&I Committee Chairman is quick to point out that the 1% bump to our B Plan at DOS plus another 1% bump 4 years later amounts to a 28.5% increase to the current 7% B Plan.
Who here has heard that the cost of the Buy Up Healthcare Plan will increase (according to their projections) 42%?
I wonder why one number is in the Roadshows, but the other is not.
That's not true. I don't wonder that at all.
.
Last edited by TonyC; 10-12-2015 at 01:47 AM.
#73
When you can definitively tell me what the rate of inflation will be in the next 6 years, we can have a "genuine" discussion regarding the value of our A plan pension over the terms of this TA. Until then, your guess is as good as mine. Since we opened Section 6 negotiations in 2013, the average rate of inflation has been about 1%. Since we signed our last TA, CPI has barely budged. If that trend continues, how valid is your 5-6% B plan bump requirement for the total retirement ratio?
You must have been a dual major in Philosophy & Discrete Math
What inflation rate is the Association using to convince you that our 3% pay raises are sufficient?
Why is the pay raise bumped up 4% that one year?
More specifically, if you were to poll the 4,200 pilots who currently work for Fedex and ask their guess on the inflation rate, how many do you think would answer "1% or less"?
How does Fedex get their customers to accept annual price increases of 4-5% in this world of 1% inflation?
Come on bruddah, you've got to be genuine and admit this section is currently concessionary, via stagnated real benefits, over the long run
Last edited by DLax85; 10-12-2015 at 05:59 AM.
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