Quote:
Originally Posted by FXLAX
I read on here someone write that maybe there should be an incentive for pilots to retire closer to 60 rather than 65. One idea I’ve heard is to make the multiplier 2.5% but only for a maximum of 20 years. It’s still yields a 50% pension. But for those in who are hired over the age of 40, it allows a maximum pension without having to go all the way to 65.
Of course, that would be great for all pilots as you’d maximize the A fund percentage more quickly; but that’s only going to be more expensive for the company
I don’t see the company realistically agreeing to that
Rather, a 1% credit for each year over 25 - to a max of 30 or 35 years, merely recognizes the fact pilots (on average) are staying almost 5 more years
That means the company has 5 more years to contribute to their A fund...and 5 less years of A fund payouts
Working 5 more years does not extend your longevity
Now that the union has spent $$ researching and modeling the companies A fund costs, they should be using this argument to justify how the company is in fact saving on the current A fund, ever since the regulated age changed.
...Along with company savings from keeping the current CBA High-five cap of $260K since 1999.
If the company is refusing to increase the cap, there are other options to increase our total retirement
Additional years of service credit and an increased B fund, with cash over cap, are clearly options that don’t cause us to freeze the current plan and switch to a VB plan