Pilot7576

Commando,

In this case you're confused. 8% of $265k is $21,200 while 12% is $31,800. You are confusing the effective rate with a higher salary over the percentage allowed by the IRS.

JTF

kronan

Nowhere in my post is a reference to the potential DSA contribution to FedEx's B plan.
Simply an attempt to quantify some numbers to the, currently, 50% greater B plan UPS enjoys. And to point out that as great as that 50% sounds, on paper, it's not as big of a benefit as you'd might assume.
And, unmentioned, if you're a UPS pilot whose demographic fate\choice is a career FO-well you're retirement will be sorely lacking compared to the FedEx career FO since the FDA in your CBA is seat specific

Since FedEx's A plan hasn't been modified since our first contract, really nothing to be proud of there. And, if you're a UPS Capt who works to the 30 yr point, your pension is the near equivalent of a FedEx Capt with a superior B plan. Barring a FDA additon to FedEx's A plan in our next contract, UPS retirement is going to be far superior to that of a FedEx pilots.

As to the DSA contribution, don't know the percentage of FedEx guys who take advantage of that...my wag would be in the 40% range. I do know that when I was a Junior WB FO I flew a Christmas trip with a very Senior Capt who was flying it as makeup sick because he'd used 6CHs of sick time earlier in the year and wanted to make it up in order to get the full 72CHs into his B plan. (That was 11 years ago, so think there was no impact on potential 401k savings back then)
It's a potential 20.5k addition to a FedEx WB Capt's B plan, with an obvious impact to potential 401k savings. If I understand the earlier comments, if a UPS pilot exceeds the IRS limits on DC, it's contributed to the after tax section of your B plan. Haven't researched it for FedEx since I tend to actually USE at least a portion of my Sick Leave each year...but as I understand it, if a FedEx pilot exceeds the DC savings limit the excess sick leave is paid as regular income.
It is a much better benefit to have the ability for that $$ to grow tax free. Just wish there was some way to avoid the Govt tax bite, depressing when you think of just how big of a percentage the Govt takes off the top dollars of your earnings, not to mention the extra tax to support PPACA

Pilot7576

Kronan,

I understand there are numerous ways at both companies to enhance the total retirement package. Without getting into the weeds about what some pilots can do with sick time and so forth, the A/B plan comparison is the easiest to measure because it applies to ALL pilots at each company. A plan plus B plan plus 401k works for everybody.

There will be lifetime FOs at ups that will probably upgrade right before they retire to get the CPT FDA...that is what I would do if I were in that position. Either a CPT award or not trained and allowed to bypass would secure the CPT FDA.

Looking at the industry, we are the only two companies offering an A plan to the entire pilot group. What is sad is that we look so good not from what we have but what the other airlines don't. My son will be applying for the airlines within the year and it will be hard to recommend pax airlines with no A plan. A big B plan is nice, but it's good to have your eggs spread around different baskets.

I think we are agreeing much more than we are disagreeing...splitting hairs like this is much more fun over a couple of beers.

JMO