Pilot's Forum

 

Not sure what this means to the pilots pension plan but might be a slight ray of hope to delay tossing our pension away at least until October 2005. My thinking is that this would at least cement the 2000 contract within the five year look back. Would appreciate your opinion if different.

Fraternally & Semper Fi! Bob

The following copied from the RUPA.org news page: Frequently asked questions = Retirement Benefits  posted from  Skynet July 30th.

The April 2004 contribution was $110 million, way up from the January 04 contribution of $17 million and October 03's contribution of $6 million. Why have the contributions increased so dramatically?
In the 1990s, we made contributions to our pension funds over and above what was required, thus building up credits that enabled us to reduce cash contributions in leaner years. Those credits have been largely used up, although we still have unused credits for the pilots’ plan. There are no contributions due to the pilots’ plan until October 2005.

Robert Beavis  
 
 
 
 

Response----

Bob,
 
    You are "probably right" in my opinion that we're ok till Oct 2005. Our situation is some what the opposite of US Air, the other pensions are the most under funded, not the Pilots.
 
    Reasons ?  One big reason is that the active pilots changed their defined benefit plan thereby significantly decreasing future obligations ( a 1.3 multiplier vs. 1.5, 1.41 or 1.35 and a maximum accrual of 30yrs.- that's 42% of a significantly reduced FAE 3)
 
    Other groups recently got improvements in pensions that are only now showing as future obligations. Credits and other rules allowed all pension funds ( State & Local Govts' Teacher Pension Funds et.all.) to get in a very vulnerable position (like many 401K's) through lack of funding in the 90's and subsequent rules to postpone the funding when it was obvious trouble was looming.
 
Again in my opinion "probably right" because there could be a "voluntary termination" if ALPA+Other Unions & UAL agree, that would allow/require the PBGC to step in. This is only one scenario that gives me pause - I'm sure "Legal Minds" are hard at work. As far as the Courts & Judges go all Bankruptcies are unique and anything goes.
 
                                                                                                                Mike

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