ALPA Run Pension Plan
01-08-2011, 11:07 AM
#1
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Joined APC: Nov 2010
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ALPA Run Pension Plan
Kinda curious about the loss of A Funds in recent years.
I think the airline industry has the whole pension thing backwards. Consider a welder who is a member of the Pipe-fitter's union. His whole career, his employers pay a % of his wages to the union pension fund. At retirement, his pension checks come from the union, not his former employer(s).
Has anybody given consideration to letting pilot unions (ALPA) run their pension fund instead of employers? It would be transferrable and kept out of the hands of executives. Sounds to me like a much safer way to get an A Fund back at the legacies.
One difference would be the union sets the pension rate, so it's standard for all pilot members.
Thoughts?
I think the airline industry has the whole pension thing backwards. Consider a welder who is a member of the Pipe-fitter's union. His whole career, his employers pay a % of his wages to the union pension fund. At retirement, his pension checks come from the union, not his former employer(s).
Has anybody given consideration to letting pilot unions (ALPA) run their pension fund instead of employers? It would be transferrable and kept out of the hands of executives. Sounds to me like a much safer way to get an A Fund back at the legacies.
One difference would be the union sets the pension rate, so it's standard for all pilot members.
Thoughts?
01-08-2011, 11:17 AM
#2
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Joined APC: Sep 2007
Posts: 1,480
If you really want to get down to it, the railroads are governed by the Railway Labor Act. Part of that act is RRTA. Their retirement is guaranteed by the Federal Government. Since we are governed by the RLA, shouldn't our retirements be handled in the same manner?
01-08-2011, 11:36 AM
#3
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Joined APC: Feb 2008
Position: Top
Posts: 472
I have no interest in letting someone else do my retirement investing for me, then taking a cut and leaving me hoping they didn't give it all to Bernie Madoff. I want my company to contribute to my 401(k) and let me do the rest.
01-08-2011, 11:48 AM
#4
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Thread Starter
Joined APC: Nov 2010
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Posts: 242
So max out your 401k and B Fund. But get back another source of retirement funding over and above what you can put away due to the Defined Contribution limits. I trade mine too.
Why do you think the freighters are laughing all the way to a prosperous retirement? A multi-axis approach to old age wealth.
Why do you think the freighters are laughing all the way to a prosperous retirement? A multi-axis approach to old age wealth.
Last edited by Indy; 01-08-2011 at 11:58 AM.
01-08-2011, 12:31 PM
#5
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Joined APC: Jun 2009
Posts: 5,113
Originally Posted by Indy
Why do you think the freighters are laughing all the way to a prosperous retirement?
01-08-2011, 12:41 PM
#6
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Joined APC: Sep 2005
Position: Retired 767 Captain
Posts: 548
Originally Posted by Indy
Kinda curious about the loss of A Funds in recent years.
I think the airline industry has the whole pension thing backwards. Consider a welder who is a member of the Pipe-fitter's union. His whole career, his employers pay a % of his wages to the union pension fund. At retirement, his pension checks come from the union, not his former employer(s).
Has anybody given consideration to letting pilot unions (ALPA) run their pension fund instead of employers? It would be transferrable and kept out of the hands of executives. Sounds to me like a much safer way to get an A Fund back at the legacies.
One difference would be the union sets the pension rate, so it's standard for all pilot members.
Thoughts?
I think the airline industry has the whole pension thing backwards. Consider a welder who is a member of the Pipe-fitter's union. His whole career, his employers pay a % of his wages to the union pension fund. At retirement, his pension checks come from the union, not his former employer(s).
Has anybody given consideration to letting pilot unions (ALPA) run their pension fund instead of employers? It would be transferrable and kept out of the hands of executives. Sounds to me like a much safer way to get an A Fund back at the legacies.
One difference would be the union sets the pension rate, so it's standard for all pilot members.
Thoughts?
01-08-2011, 01:09 PM
#7
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Joined APC: Feb 2007
Position: 765-A
Posts: 6,844
Originally Posted by FrankCobretti
I have no interest in letting someone else do my retirement investing for me, then taking a cut and leaving me hoping they didn't give it all to Bernie Madoff. I want my company to contribute to my 401(k) and let me do the rest.
I understand your skepticism. But, IF (and that's a very big IF) pensions could be somehow guaranteed, it would be great for our careers. Think about how many of the pilots, senior to you, would be retired if they weren't doing the last of their retirement investing from age 60-65.
When I first got hired, pilots were "crossing their streams" and shooting for retirement somewhere between 55-58.
What we have now are pilots who look at age 60+ as a place to cash in and "invest" and 7 years of stagnation for the rest of us.
Last edited by newKnow; 01-08-2011 at 01:25 PM.
01-08-2011, 02:06 PM
#8
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Joined APC: Mar 2008
Position: 767er Captain
Posts: 12,109
Not only no, but hell no. I'm sure they'd LOVE to do that, and they could stick us for even MORE money. No thank you. alpa is in my wallet enough, besides I don't want any of those rocket engineers managing MY money...
01-08-2011, 02:12 PM
#9
No longer cares
Joined APC: Mar 2008
Position: 767er Captain
Posts: 12,109
Originally Posted by newKnow
Frank,
I understand your skepticism. But, IF (and that's a very big IF) pensions could be somehow guaranteed, it would be great for our careers. Think about how many of the pilots, senior to you, would be retired if they weren't doing the last of their retirement investing from age 60-65.
When I first got hired, pilots were "crossing their streams" and shooting for retirement somewhere between 55-58.
What we have now are pilots who look at age 60+ as a place to cash in and "invest" and 7 years of stagnation for the rest of us.
I understand your skepticism. But, IF (and that's a very big IF) pensions could be somehow guaranteed, it would be great for our careers. Think about how many of the pilots, senior to you, would be retired if they weren't doing the last of their retirement investing from age 60-65.
When I first got hired, pilots were "crossing their streams" and shooting for retirement somewhere between 55-58.
What we have now are pilots who look at age 60+ as a place to cash in and "invest" and 7 years of stagnation for the rest of us.
And your comment about the 55-58 crowd. I think many guys talk a good game, but when actually faced with that, they can't give up the lifestyle.. and the income. Laugh all you want, but many guys are defined by this job, and when they leave, they die. How many of the fNWA guys with pensions are REALLY gonna leave when they hit 62 (like the lawyer said in the SLI hearings?) I'm betting very few. (And this is not to start the SLI fight again... just commenting on what he said.) It certainly isnb't gonna be a rush for the door, because of what I said earlier.
But back on topic.. I wouldn't want alpa to manage YOUR money, much less mine...
01-08-2011, 07:33 PM
#10
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Joined APC: Jun 2007
Posts: 2,598
Originally Posted by FrankCobretti
I have no interest in letting someone else do my retirement investing for me, then taking a cut and leaving me hoping they didn't give it all to Bernie Madoff. I want my company to contribute to my 401(k) and let me do the rest.
Just have the company put 20% in your DC plan, you max out your contributions to IRA's and you'll have way more than the old pension plan would have given you and it's yours. I have no desire to get a standard pension back, just up my DC % and I'm fine.
What I want is the company to fund my HSA account with about 5K per year so when I'm 55 I can use that money to pay my healthcare bills until I reach Medicare age. If you don't have that, retiring early will be very expensive.
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