ALPA Video - Retirement Path
#21
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.
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.
#24
#25
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
#26
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
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
#27
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
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
#28
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
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
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
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