Go Back  Airline Pilot Central Forums > Airline Pilot Forums > Cargo > FedEx
ALPA Video - Retirement Path >

ALPA Video - Retirement Path

Notices

ALPA Video - Retirement Path

Old 07-31-2016, 10:32 AM
  #21  
Gets Weekends Off
 
BigWatchPilot's Avatar
 
Joined APC: Feb 2006
Position: Bench Warmer
Posts: 241
Default

My Take...(not worth much)

This is a long term 'marketing' tactic. We as a group were hard lined with NO changes to our retirement other than a bump, and we could not get much of that. The company wants to get out of a DC plan like the other 97% of fortune 500 companies in the last 20 years.

I feel that the purpose of this exercise is a joint venture to 'educate' us in preparation for something other than what we have in the next contract. You can not road show and sell us on this it has to be a multi year, well executed, education campaign to show us the win/win with something 'other'. Only then can we go into negotiations with selling this to the crew force as a victory and just what we wanted.

My financial advisor has helped with a few of these cases over the years and this is part of the process. Getting out of a Pension is an expensive and one time controlled cost...the company wants to limit the cost.

I doubt we will see a single section re-opened this is for the next round, need to start educating all the new hires on all the money they will walk away with by giving up the Pension. All you need is 51% to kill it and that is where the votes will be when it comes time to approve the next 'game changing - industry leading' contract.

Or...as we saw with the approaching age 65 rule, how many of these guys can we keep hanging around in hopes of something more. Most are retiring close to the max but with the staffing crisis that the industry is in, everyone that sticks around helps.

This is all speculation...call me skeptical.

Last edited by BigWatchPilot; 07-31-2016 at 10:55 AM.
BigWatchPilot is offline  
Old 07-31-2016, 10:34 AM
  #22  
Gets Weekends Off
 
Check 6's Avatar
 
Joined APC: Jan 2007
Position: 777
Posts: 866
Default

I'm 52...lets drag this out for 2 more years. Then when I'm 54 we can give ME a good deal and I will gladly pull the ladder up behind me.

Check 6 is offline  
Old 07-31-2016, 10:55 AM
  #23  
Gets Weekends Off
 
Joined APC: Aug 2006
Posts: 1,820
Default

Originally Posted by busdriver12 View Post
A stagnant 130K will not be very meaningful decades from now.
Busdriver12,

How much will you have to save each year for 25 years in order to collect $130K until you die?
pinseeker is offline  
Old 07-31-2016, 10:59 AM
  #24  
Gets Weekends Off
 
Adlerdriver's Avatar
 
Joined APC: Jul 2007
Position: 767 Captain
Posts: 3,987
Default

Originally Posted by pinseeker View Post
Busdriver12,

How much will you have to save each year for 25 years in order to collect $130K until you die?
$130K each year would get you through the first 25 years, right?
Adlerdriver is offline  
Old 07-31-2016, 11:43 AM
  #25  
Gets Weekends Off
 
DLax85's Avatar
 
Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,189
Default

Originally Posted by pinseeker View Post
Busdriver12,

How much will you have to save each year for 25 years in order to collect $130K until you die?
And please tell us...

your assumed, rate of return when you do the math?

What you will invest in to get that rate of return?

What market risks you will be taking?

And your exact aircraft/seat & time of upgrade?

And how your B fund will continue to grow if you become disabled?

Throw in your current age and retirement age as well

The simple math is highly dependent on all of these assumptions/factors --- and these factors differ significantly over our 4,300+ pilots

...,many of which may be new hires & junior, but may not necessarily be young
DLax85 is offline  
Old 07-31-2016, 12:13 PM
  #26  
Gets Weekends Off
 
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
Default

So nobody here would take a proposal to raise the cap for all pilots on the list to $300k in exchange for new hires with a DOH of 1 July 2017 getting the UPS retirement (A and B Plan). If not why not? After all it is a win for those currently on the list, it is a win for new hires (must be, UPS kicked our ass on the last contract right?) and it would likely save the company money in 10 years or so
FDXLAG is offline  
Old 07-31-2016, 12:39 PM
  #27  
Gets Weekends Off
 
DLax85's Avatar
 
Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,189
Default

Originally Posted by FDXLAG View Post
So nobody here would take a proposal to raise the cap for all pilots on the list to $300k in exchange for new hires with a DOH of 1 July 2017 getting the UPS retirement (A and B Plan). If not why not? After all it is a win for those currently on the list, it is a win for new hires (must be, UPS kicked our ass on the last contract right?) and it would likely save the company money in 10 years or so
Haven't heard the company is offering anything close to that

Have heard rumors of "Only B fund" for new hires, and I think the company's benchmark won't be UPS, they will strive for Delta & Uniteds 15-16% B plan (with No A fund)

Even a solo B fund larger than that has many unforeseen pitfalls, and inherent assumptions that may not prove true in the long run

You mention the company would be "saving money" in 10 years --- seems like they are thinking strategically

I would encourage all new hires to think the same way

But of course, they aren't on property yet
DLax85 is offline  
Old 07-31-2016, 12:56 PM
  #28  
Gets Weekends Off
 
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
Default

Originally Posted by DLax85 View Post
Haven't heard the company is offering anything close to that

Have heard rumors of "Only B fund" for new hires, and I think the company's benchmark won't be UPS, they will strive for Delta & Uniteds 15-16% B plan (with No A fund)

Even a solo B fund larger than that has many unforeseen pitfalls, and inherent assumptions that may not prove true in the long run

You mention the company would be "saving money" in 10 years --- seems like they are thinking strategically

I would encourage all new hires to think the same way

But of course, they aren't on property yet
we don't know what they are offering and won't unless we talk. That is my point. My point about saving money, Ups got improvements to their A Plan by doing things to get around the PBGC rules. Win win for the pilots and the shareholders.
FDXLAG is offline  
Old 07-31-2016, 01:41 PM
  #29  
Gets Weekends Off
 
The Walrus's Avatar
 
Joined APC: Feb 2010
Position: Socket Drawer
Posts: 1,797
Default

Can someone explain exactly what UPS has been offered as a fix?
The Walrus is offline  
Old 07-31-2016, 01:56 PM
  #30  
Beaches and Sand
 
Joined APC: Feb 2007
Position: Chasing Surf
Posts: 368
Default

An annuity for that amount runs 2 million fwiw.

Originally Posted by pinseeker View Post
Busdriver12,

How much will you have to save each year for 25 years in order to collect $130K until you die?
kc10/c130 is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
TheManager
Major
9584
07-28-2015 12:15 PM
CRJAV8OR
Major
36
03-27-2012 11:06 AM
superduck
Union Talk
420
06-20-2011 10:00 PM
PEACH
Union Talk
8
03-30-2010 08:40 AM
rjlavender
Major
26
10-19-2006 08:48 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices