ForestGump

Fresh Hot Pizza has a point. That's why it's called a negotiation. Everything is on the table if the company and the union decide to discuss it. The end result is always a compromise between competing interests. My short history with the company (10 years) has taught me that most negotiations favor the top of the seniority list. If the senior guys aren't worried about penalties for retiring before age 60, then it won't be hard to give up. By the way, many on the top of the seniority list are well past the 60 yr benchmark....what's a few more years.

Laughing_Jakal

No worries.......nuance is not a strong point of message boards....we are all on the same team.

MD10PLT

OK did some quick retirement calculations in Quicken, all in today's dollars.

Assuming one wanted to retire with $100K annual income, worked at FedEx for 25 years, started at age 40, lived to be 85, 3% inflation and 8% return; your required annual contribution would be $44,578.

Now assume an average income over your 25 year career of $200K; to achieve the $100K would require a 22% B-fund contribution, including our current contribution this becomes 29%.

Personally I don't think that is all that unreasonable to ask for as a replacement for the A plan.

HankHill

If our MEC and negotiating team come back with a contract with a change in the retirement age because of the senior ones, there will be heck to pay. I will picket in front of the MEC office and MEC Chairman's house with a bullhorn even if I am by myself, every day I have off. I do not believe it will happen but if they are willing to trade a few dollars for the "GIFTED ONES", then the unity in this place will blow up. I have more faith in our MEC to do what is right for all, not just the few at the tip of the pyramid.

MD11Fr8Dog

Starting at yr 1 of 25, how much would it be starting at year 17 of 25?

RedeyeAV8r

That all sounds great but under the IRS 415 C limits for DC plans (B-Funds,401K's and Sick buy back are inclusive) is Capped $49,000.

I believe the IRS Qualified plan limit for 2010 is $240,000 meaning that is what your B Plan percentage Cap is.

Once you hit Captain rates you bump up against these annual caps.
You would also lose the ability of maxing out a 401K (tax break) or in most cases
lose payment while in LTD status (on LTD no deposits to your 401K or B Fund).

With the A fund a Pilot still gets longevity credit towards years of service.
Ask some of our guys who had to medically stop flying but have not yet "retired".
You do not want to lose this option should you need it as 1 out of 4 statisically will.

We have a very good balanced retirement plan. Why even talk of giving up our A plan? This was a deal breaker before (last contract) and was one of the prime reason this group unionized in 1993. OBRA 93's $ 75,000 cap on Pensions.

MaydayMark

Best point yet ... hear, hear!

Mark

boxhauler

Exactly! Balance, multi-legged stool, however you want to look at it the A plan is a valuable part of our retirement plan. I wont vote for anything that hints at eliminating it.

Deuce130

Same here. It wasn't so long ago that most saw their 401Ks and investments decimated. I'd rather not have to rely on smart investing or good timing alone.

The Walrus

The one change that you Will probably see with the next contract is a raise in the max retirement cap, currently 260K. By raising the cap to say 300K, there is a bunch of pilots who previously thought that they had made their high five, that find out that they need 5 more years of high five in order to max out their retirement. Instant extra manning, and less payout of retirement to a bunch of guys who have worked themselves to death for their high five, twice.