FDX age change 62
12-16-2015, 04:52 PM
#21
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Joined APC: May 2013
Posts: 360
Reference email from ALPA today...
I intend to retire at 60. If I ask for my benefits to start day 1 no change, but if I ask for them to start 1 month later it's got to come in a lump sum cash payment from a non-qualified plan? WTH? That small difference makes a big one in how it's paid? I'm confused (not hard to do).
I guess so far, what the R&I guy said in the video was true- if you want to retire at 60 nothing (essentially) changes, but I'm getting skeptical with the rest of you..
I intend to retire at 60. If I ask for my benefits to start day 1 no change, but if I ask for them to start 1 month later it's got to come in a lump sum cash payment from a non-qualified plan? WTH? That small difference makes a big one in how it's paid? I'm confused (not hard to do).
I guess so far, what the R&I guy said in the video was true- if you want to retire at 60 nothing (essentially) changes, but I'm getting skeptical with the rest of you..
12-16-2015, 05:14 PM
#22
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,200
Glad the R&I Committee put out the email, but there's a few more questions which should be answered:
Why would a retiring pilot elect to delay receiving retirement benefits?
If one retires with less than 30 days notice, could this cause such a delay in receiving retirement benefits?
In the past year (...or 2, 3, 5 years) how many/what percentage of pilots have retired and elected to delay benefits?
Are there any tax differences to the pilot by being paid from a non-qualified plan vs a qualified plan?
When computing the "lump sum" amount what discount rate will the company use?
Is that discount rate dictated by the IRS or at the discretion of the company?
Why would a retiring pilot elect to delay receiving retirement benefits?
If one retires with less than 30 days notice, could this cause such a delay in receiving retirement benefits?
In the past year (...or 2, 3, 5 years) how many/what percentage of pilots have retired and elected to delay benefits?
Are there any tax differences to the pilot by being paid from a non-qualified plan vs a qualified plan?
When computing the "lump sum" amount what discount rate will the company use?
Is that discount rate dictated by the IRS or at the discretion of the company?
12-25-2015, 08:23 AM
#23
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Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
12-25-2015, 10:41 AM
#24
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Joined APC: Aug 2006
Posts: 1,433
Most don't, but you could retire at 58 and wait until 60 to start receiving the pension benefit without any reduction in benefit (vs taking a 6% reduction). Ref PBB
12-25-2015, 12:50 PM
#25
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Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,419
But if you retire at 60 (most don't) there are no changes to the $$ you receive.
And if you retire at 55 (most don't) there is no change to the reduced payment you'd receive---the reduction is still 5 years.
And if you retire at 55 (most don't) there is no change to the reduced payment you'd receive---the reduction is still 5 years.
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