Continental Most Admired U.S. Airline

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02-27-2006, 06:54 AM

#21

fireman0174

Gets Weekends Off

Joined APC: Aug 2005

Position: Retired 121 pilot

Posts: 1,032

Quote:

Originally Posted by captjns

An employee will recieve his/her be it from the company or the PBGC. An accured benefit is usually defined as the normal retirement benefit which commences at age 60 (for airline pilots) multiplied by a fraction whereby the numerator is years of service from date of hire to termination and the denominator is the total years of service from date of hire to the individual's normal retirement age, again age 60 for pilots.

Actually, because a part 121 pilot's normal retirement is age 60, you get a five year penalty as the "normal" figure is based on age 65 retirement.

Force you to retire at 60, then penalize you under the PBGC rules. Ain't the government wonderful?

02-27-2006, 07:36 AM

#22

captjns

Gets Weekends Off

Joined APC: Feb 2006

Position: B-737NG preferably in first class with a glass of champagne and caviar

Posts: 5,912

Quote:

Originally Posted by fireman0174

The response to your comment is no. Airlines funded retirement benefits to age 60. Flight attendants nor mechanics are covered by this exemption. The PBGC also recognizes age 60 as the normal retirement age for airline pilots.

Below is an excerpt from Section 415(b)(9)(A) of the Internal Revenue Code supporting this regarding monthly retirement benefits.

Section 415(b)(9)(A)

(9) Special rule for commercial airline pilots
(A) In general
Except as provided in subparagraph (B), in the case of any participant who is a commercial airline pilot, if, as of the time of the participant's retirement, regulations prescribed by the Federal Aviation Administration require an individual to separate from service as a commercial airline pilot after attaining any age occurring on or after age 60 and before age 62, paragraph (2)(C) shall be applied by substituting such age for age 62.

Such benefits must be funded in accordance with Section 412 of the Internal Revenue Code. However unions have different regulations when it comes to funding retirement plans. However airlines have followed the spirit of Section 415 and 412 regarding retirement plans.

Last edited by captjns; 02-27-2006 at 07:44 AM.

02-27-2006, 07:42 AM

#23

RedeyeAV8r

Gets Weekends Off

Joined APC: Jan 2006

Posts: 2,838

Quote:

Originally Posted by captjns

(9) Special rule for commercial airline pilots
(A) In general
Except as provided in subparagraph (B), in the case of any participant who is a commercial airline pilot, if, as of the time of the participant's retirement, regulations prescribed by the Federal Aviation Administration require an individual to separate from service as a commercial airline pilot after attaining any age occurring on or after age 60 and before age 62, paragraph (2)(C) shall be applied by substituting such age for age 62.

Again..............What is your Point?