Quote:
Originally Posted by m3113n1a1
Yup. No way I'm banking on a "minimum amount" supplied by Delta 30 years from now. What if Delta doesn't even exist then? (Almost the same concept as having Delta stock in your retirement account). Is there a minimum retirement age with this type of plan? What if I retire early do I get nothing?
It is a defined benefit plan. This is why the PBGC is involved. There will likely be vesting and survivorship discounts.
Don't get distracted by details of what is fundamentally a horrible idea.
had my standard conversation about 20 years ago with a new hire second officer about my counsel to NOT rely on the now terminated delta pilot pension plan. He took issue with my assertion the plan was a ponzi, and would collapse.
His POV was it was a great plan, as he spent 20+ years in military, and only was getting about 50% pension. I asked him what he thought he would get from delta....he figured NB A at 60%. So I asked him how old he was? '48'.....
So I broke it to him one has to have 25 years service to get that 60% value. So he would at best get 12/25ths of that 60%. And BTW, the first 5 years you aren't even vested, so you wont get anything until year 6.
And one also HAD TO work to age 60 to get the full value, so if he retired earlier than age 60, there would be another 2-3% discount on the benefit.
Out comes the pencil and he did some quick math. He looked at me and said.."Well that SUCKS!" Yeah....no worries though, its gona fail before you get a dime anyways.