Sirs:
What are YOUR T/A and CBA expectations?
If you don’t think we’re just a bit behind on updating our retirement plan(s), consider the following from the IRS:
Effective Jan. 1, 2013, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $200,000 to $205,000. For a participant who separated from service before Jan. 1, 2013, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2012, by 1.0170.
At FedEx, the calculation in our CBA limits the annual defined benefit to $130,000 ($260,000 x .02 x 25 years). We’re about $75,000 short on what we should be targeting just in retirement. The 2% multiple above needs to be increased to at least 3% to get us close ($260,000 x .03 x 25 years = $195,000 per year). This single item will benefit every crewmember – even the non member management minions.
We need SIGNIFICANT improvements across the board in this T/A – pay, work rules, scheduling, health care, and retirement. Most of us want a fix with 4.A.2.b., sick, jury duty, the deviation bank process, accepted fares and open time (reserve transparency and trip trading). It’s time to move forward. No more “we’ll work on that in our next T/A” crap. CONTRACT NOW. Wear your lanyard. Take ownership of the process and be in this 100%.
Very Respectfully,
Nakazawa