StarClipper

Well said, I see it as a sales job too.

MEMFO4Ever

I was satisfied with the answers I received concerning where they were in the process and why they were looking at a variable option with some stabilizing feature. I also spoke directly with members of the NC and R&I at a joint council meeting and had some specific questions answered as well as read all of the educational materials available on the website. Objectively I think it is something worth looking at and will wait until all the specifics are in before rendering some decision. At the very least this research may give us better insight into the funding aspects of the current plan when the next amendable period begins, particularly with the impending expiration of MAP-21 and HATFA.

And honestly, I have never had any union representative tell me to "trust them."

707Type

I don't think you understand the purpose of this forum. Such rationality and patience is entirely out of place, someone alert the moderators.

pwdrhound

Raising the cap to 300K would increase pay out by 20K per pilot. Assuming roughly 1500 pilots collecting retirement, this would increase retirement payout for Fedex by $30 million annually. Considering Fedex 2016 fiscal year gross earnings of $60 billion ($164.38 million/day), this extra $30 million amounts to 4.38hrs hrs of Fedex gross earnings. How in the world could Fedex possibly be able to afford that????

Assume that if we had a 300K cap and the average payout per pilot was 150K (obviously this would be lower as not every retiree has 25 YOS and 300K avg high 5), the annual retirement payout for 1500 pilots would be $225 million. Consider that out of the $25 billion in the total Fedex retirement fund, roughly $6-8 billion is assigned to the pilots. At 4% interest, this amounts to $240 million of interest earnings per year which exceeds the theoretical payout of $225 million if we had a 300K cap. How in the world could Fedex possibly be able to afford that???

Finally, under our A-Plan, if a pilot is unfortunate enough to go out on disability they are still earning longevity towards their 25yrs while they are in a holding pattern. This in an invaluable insurance policy many do not consider. Has anyone asked if this would still be the case under the variable annuity scheme?

pinseeker

This is what I mean by sales job. No details, no facts, just statements implying how good this new plan is.

I totally agree about being objective, but how can one be objective when the only information being provided is in support of this type of plan. I couldn't find anything on the union website providing risks and hazards to this type of plan. The only expert that has a video is Mr. Blitzstein who developed the plan. Cheiron, the company who is referenced in the modeling, sells this type of plan. So, where is the objectivity?

I'm not trying to argue with you, I would just like to see a true educational presentation where we get information from experts who both support this type of plan as well as from experts who caution against it.

If you are going to buy a new car, do you only visit one dealership or research one model of car? Right now the MEC seems to be parked at the Toyota dealership and is ready to buy what the dealer says they can afford.

Fdxlag2

Your numbers are correct if we increased the payout from 130k to 150k like UPS supplements their A Plan. Unfortunately raising the payout by 15% would probably require a lot more than $30 million a year into the retirement fund.

StarClipper

FedEx can afford it, is the liability they trying to avoid. And the Union is entertaining that BS.

Fdxlag2

We will get em. You do the same, Chuck E. Cheese can afford to pay you $9 an hour.

StarClipper

Lol and the jokes keep coming in.

busdriver12

I'm not sure why anyone thinks the company would offer improvements to our A and/or B fund while not in negotiations. They are only going to discuss changes to our retirement outside of negotiations if it benefits them.

I have a bad feeling about all this