Shaman

I disagree with the strategy that OUR union is taking. So simply waiting until they've gone ahead and executed that strategy is an unacceptable position. They are engaging in "education" and so too should the rank and file. By voicing opposition to not only the proposed plan, but also the tactic used to present it we can perhaps influence sentiment.

Variable Benefit plans are not brand new. There is information about them (outside what the union provides) pro and con to be shared and considered. All of this is apart of our total compensation and retirement benefits should be considered in their totality and not piecemeal.

We can and should educate ourselves so that our votes can be informed and this forum is one source.

Fdxlag2

Saying the MEC is engaging in education is an insult to the term. Education is not a power point slide show that present carefully crafted figures without any chance to verify them our get alternative figures. In 2006 I asked a block rep how much does my pension cost FDX every year. I never got an answer. Seems like we may finally have an answer but they don’t want us to know.

kronan

In no particular order.

I find it fascinating that posters here have detailed information that is available to absolutely no one else. Numbers that could only come from inside our Union, and yet there ARE no firm plans yet. That was kinda the point of the most recent Union Comm. That various surveys will be undertaken if management wants to move forward. If management says no way, then it'll all be tabled until Section 6 opens in a few years.

COLAs-wonderful, expensive as heck. Might\might not keep up with inflation. Even people who think turning your IRA\401k into an annuity tend to point out that buying one with COLA protection (usually simply a fixed rate) gets you less $$...and, might be better off buying several annuities with no COLA but with deferred starting points. (eg ones that starts paying out at 65-70-75)

So going out on a limb here, the vast majority of the Pension world has gone the way of the dodo, and those were pensions Without COLAs. Adding a COLA to our A plan would increase the odds of the A plan being handed over to the PBGCC. Not today, certainly not tomorrow, but where is it written that FedEx will ALWAYS be profitable. Corporations don't have to lose $$ for decades before there's an impact on pensions. What will the shipping world even be like in 40 years?

The one thing I do know, is assuming a 2% inflation rate (historically low) the value of my 130k pension will be roughly the equivalent of todays 59k. And less than that if inflation's higher.

And YES, one of the risks of a Variable Benefit plan is a reduced pension during market drawdowns.
And this is just a faceless internet poster here, but, personally I'd be happy to accept 117k for the year or two of a typical down market in return for 143k while the Bull's running (10% swing from our current pension)

NOTE-those are made up, Kronan numbers. No idea what the recommended floor would be if we move forward

Or, you can check out Vanguards Recent blog on Dynamic Spending during retirement

https://vanguardblog.com/2017/09/07/...0217:0201:RET:

kronan

And the Education Process is at the Very Beginning, or at least that's my impression from the Union emails\posts I've read...maybe I missed the huge tome outlining the detailed VB

Anyone have a link for me to it? Can't seem to find it on our website

Adlerdriver

"handed over to the PBGC"??? (BTW, you have an extra C there)

There are some pretty specific things that have to happen before a pension plan get "handed over". You make it sound like an option that any corporation can exercise when they see fit.
here's a link to them:
https://www.pbgc.gov/about/factsheets/page/termination

So your logic is that we shouldn't seek improvements to our A plan because that might make it harder on the company to continue to fund it? Using that logic, why should we seek pay raises or work rule improvements? They might get taken away at a later date.

Sure, there's no guarantee FedEx will be profitable in perpetuity. If they're not, then maybe we have to back off to say..... where the A-plan is today. There's a big difference between having a few down quarters and bankruptcy.

pwdrhound

THIS, THIS, THIS^^^^^. Retaining the A-Fund was one of the main cornerstones of the last contract and in my opinion we gave up a lot to keep it. No, we did not improve it, but we got to keep it. I'm not going to argue the merits of the last contract that I see as concessionary due to the meager COLA pay raises which the company has recouped (and then some) through greater productivity. My quality of life and the trips flown is arguably worse than 7-10 years ago.

With that said, we know how badly the company is salivating at the prospect of dumping our A-fund liability off their book. WE HAVE SOMETHING THEY WANT!! If our union is hell bent on giving it up and assuming the risk, then we should at least use the leverage this is giving us in order to negotiate real pay raises, improvement to the B-fund, cash over cap, etc, etc.

I will accept it if we eventually as a group end up bargaining the A-fund away WHILE IN SECTION 6 NEGOTIATIONS in exchange for other quantifiable improvements as mentioned above. I am not ready to accept the union bargaining our A-fund benefit away for nothing just two years into this contract. Why was this not entertained two years ago while we were negotiating? Where was the polling to even find out if the crew force wants to entertain this? We voted this current contract in by a narrow margin. Let's live under it and engage the company is section 6.

Finally, it has been suggested that we offer the pilots various retirement options that each person could choose based on what they feel is best for them. Many argue that this would divide the crew force just like a B-scale would even though this would be fully voluntary. I will argue that dumping our A-fund in lieu of this variable annuity will do the exact same thing. The guys that have their 25 have nothing to loose and every thing to gain. The guys that have 20 or less have a lot to lose with very little to gain. If that doesn't pit one group against the other, then I don't know what will.

Chainsaw

How can anyone take this clown seriously? He types like an english second-language illegal alien or a brain damaged grammar school reject. StainClipper has so many mistakes in his posts I'm convinced he has an extensive collection of hairnets in his hovel. I wanted to type, "Jim, I'll take an R for $500" after reading an earlier post." I can just see him sitting in front of his Big Indian Chief Writing Tablet with extra fat pencils drafting his next piece of wisdom. Please just ignore this fool for my sake.

Chainsaw

+1, you are absolutely correct sir.

Adlerdriver

Uh...... we were. Made it at least 10 pages and almost a week without a peep. But thanks though, I’m sure he’ll keep away now.

Chainsaw

Nice one Peter.