How does your A-plan work?

Sluggo,
Without getting too detailed the A-plan has two formulas, one is 1% multiplied by number of years served (max 30 years) of Final Average Earnings, the other is a flat dollar amount multiplied by years served (max 30 years) , this flat dollar amount was increased in this T/A. So if you worked for 30 years, you'd take 30% of your final yearly paycheck and that's your yearly payout, or you can calculate the flat $ amount of $4000 (Capt) x 30. Whichever one is higher is your A-plan yearly payout. Personally my B-plan plus 401 is where the big bucks are, and that's my money, that no bankruptcy can take away from me or my HEIRS, the A-plan is great, the B-PLAN lets me sleep at night

Got it. Thanks. Is there a cap on the 1% part of the A-plan (the most we'll ever get is $130,000/year). I do like having both, though. The B-plan insulates against a bankruptcy, and the A-plan insulates against the stock market taking a dump a year before you retire.

Sluggo 63,
I agree, I sat in my AF squadron watching my pax buddies have their retirements decimated. We are fortunate to be flying night freight, at least when it comes to retirement benefits. Now the trick is to make it to a long and healthy retirement����

Yes UPS caps out just like ours. They do not have cash over cap.

Vito,

I saw a bullet on better furlough protection, any highlights?

FDXLag,
I have t looked at that section yet. What I have read was under the "highlights" there is some language that will make any future furloughs a lot more costly to the company, so a disincentive. Also we still have the open time ban allowed if any pilots are furloughed.

Having that cap made our B plan increases somewhat unexciting to me. While I would certainly like to have more of an increase, when it's limited to such a low level, it's far less valuable.

Same thing with the A plan. Decades ago, 130K/year sounded like a lot of money for retirement. Now, with inflation, much less. Can you think of how little it will seem like 20 years from now?

I agree although when you are working the first 10 years capping out the B Fund is nice. You have to figure that the total B fund over a 25 year career the 12% vice 9% probably makes a $50K difference. Of course our 2nd year 75 captains don't have to worry about that.

FDXLAG,

Are you guys at 9% now? I thought you just got bumped up to 8%? Even so, with the federal limit of $265k, 12% is $31,800 a year and 9% is $23,850 and 8% is $21,200. Even $8k a year over 25 years is $200k and that doesn't count the time value of money and compound interest.

Where are you getting $50k?