Wrong! This is what's so frustrating with you guys. You are adamantly opposed to something that you don't understand. With a B-Fund pension, the money is all yours. Doesn't matter if the company goes into bankruptcy. The money is in your own personal account that can't be touched, just like a 401k. The only difference from a 401k is that you didn't have to put any money into it. The company had to put the money in whether you contributed a dime or not. In Delta's case, it's 15% of gross earnings. The company makes the entire contribution, and then it's your money in your own account, untouchable by bankruptcy or anything else.
Let's get a real retirement plan!
I'm not "adamantly opposed" to something I don't understand. Having never been a part of a company that used those terms, I didn't get which was the DB and which was the DC plan; probably since you used the phrase that SWA had "gutted Airtran's B-fund." I had assumed that you meant they took the money away to use differently. I'll well aware of the difference between "defined benefit" and "defined contribution" plans. In fact, I'm a big fan of defined contribution plans.
By the way, thanks to everyone who pointed that out for me. :blush:
However, as far as being opposed to things you don't understand, you might want to include yourself in that group to some degree. The way SWA retirement plans work is different than what you're used to. So what. It's different. You want your retirement money to accumulate without you doing anything. You want a "real retirement plan." SWA wants you to have an interest in growing your own retirement. Take some responsibility, so to speak. With what the company contributes in 401-K and profit sharing added to my contribution, it
far exceeds 15 or even 17%. Yes, I contribute some of my own money, but in the long run, it's more much money than just counting on the company-supplied B-fund. Plus, it keeps me honest, and as importantly, keeps me with an interest in the company doing well and remaining profitable. Hey, I even put away more of my own money in other investments every month, but maybe that's just me and my sense of personal responsibility.
If you want SWA to contribute more to your retirement, are you willing to give something else up? After all, you're asking for what would essentially be an additional 8-10% "payraise" to fund this. Obviously, a union negotiator can
ask for anything he wants, but what he can get may be something different. Thus far, SWAPA has been more interested in the higher wages and job stability that we get, and then the pilots contribute some of that to their own retirements.
In all honestly, PCL, would you rather have your Airtran wages with whatever B-fund they provided for free, or Southwest wages where you have to contribute a little? And don't give me the crap about what's happening now, and your 717 story. I mean after this flux is settled, and you have the rest of your career as a Southwest guy. If you'd really prefer the reduced wages with the "free" retirement, then I suppose there's your answer about finding another job.
I realize that one of these days, you'll be in charge of SWAPA and can impart your wisdom and take care of all the Southwest pilots the way we apparently need. In fact, I can hardly wait. Until then, however, how about actually waiting until you're actually
at Southwest, and see exactly how our lives, jobs, and retirements actually work, before you tell us how it's all crap and how we need to fix it, okay? Thanks.
Bubba
