NGPA
03-28-2021 | 07:14 PM
#8
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Joined: Jun 2008
Posts: 1,980
Likes: 15
From: 737 CAPT
There were no “over payments” to the L-CAL LTD plan. The current over-funding is due to the investment returns of the fund. Just like the post-merger new UAL LTD plan, there was an adjustment made every year to premiums paid based on fund balance, projected returns, the number of people on the plan or projected to be, actuarial life expectancies for the medical conditions, etc. When investment returns or other things resulted in less than needed, we paid more in premiums and vice versa in a given year. Since the plan was frozen after the merger with the number of pilots on LTD set, the returns have done well resulting in more funds than is needed to cover the beneficiaries. That number will fluctuate as people return from LTD, pass away, reach age 65 or investment balance changes.
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