Hawaiian BK court news

[Dan Roman]

General,

How did you guys make the transition from DB to DC plan. I'm curious how you handled the different age groups, as I'm sure you're aware that the younger the pilot the better they make out with a DC plan. Our sticking point seemed to be the 40-50 year olds. The company proposed freezing our DB for those less than 50 and transitioning to a DC plan that would AVERAGE 15%. The reason for the average, was they (MEC) wanted to try and make it as fair as possible. In other words, the 49 year old that might get short changed would get more, while the younger pilots would get less, but have the benefit of compounding interest for a longer time.
Thanks.

 

[General Lee]

Dan,


Well, it wasn't easy. Most of our senior guys left with their lump sums and DB plan still entact.(so far anyway) If anyone stayed past Dec 1st of last year, they were stuck with the DC plan, and you had to be 50 years old and have more than 10 years to pull in a pension. We have had 1100 Captains (or very senior FOs) leave since May of last year, and expect 150-200 to leave on May 1st of this year, due to our lump sum payments being based on the Gatt rate.

People who weren't 50 years old but had 20 or more years were called "Dead Zoners" because they couldn't retire but probably had a large lump sum anyway. Since 1/2 of your retirement was your lump sum, many people have decided to roll the dice and retire early and take the money and invest it. I don't really blame them, and I appreciate moving up the seniority ladder. I am 40 years old, with 9 years of service so far. Our DC plan is based off of years of service and current age. If you are older but still have few years of service, you get more % per paycheck than somebody younger but same years of service. So, a 55 year old with 10 years gets more per pay check from the company than a 40 year old with 10 years of service. Good luck.


Bye Bye--General Lee

 

[Jim]

Look who wrote the article..... I wondered where he went? Now I know why the article is slanted in management's favor....


Bye Bye--General Lee

Different Dave Segal.

 

[General Lee]

Different Dave Segal.

Just joking Jim. That other Dave could only write checks, to himself.....


Bye Bye--General Lee

 

[Erndogg]

Look who wrote the article..... I wondered where he went? Now I know why the article is slanted in management's favor....

Our media coverage over here in HNL has been for both sides during this whole affair-or can I say disaffair!!!

Now were back to the table again, dealing with these mgmt types that are bent on FIXED COSTS. I dont know if our negotiators can pull any more out of these guys-but the more the better!!!!-NEGOTIATIONS 101!!!.

At this point- I dont really want to rely on the judge because of statements he has made to the media.

I think we have taken this thing as far as we could and will probably come to an agreement before the 14 day period ends. But in the same token-it's quite possible we could end up letting the judge make the decision.
TIME WILL TELL.

 

[Dan Roman]

But in the same token-it's quite possible we could end up letting the judge make the decision.
TIME WILL TELL.[/QUOTE]


Which is ironic because I don't think anyone thinks the Judge plans on giving MORE than any TA we come up with. This vote has a very emotional aspect to it.

One more question for Gen. Lee, can you post some of the rates that different age groups get in their DC? Example. Age 30, 40 and 50?

 

[General Lee]

Dan,


It is a large scale, but here is a sliding scale with age and years of service.

Age 30-- 5 years of service (5.9%), 7 years of service (5.1%)
Age 40-- 5 years of service (12%), 7 years (10.6%) 10 years (8%)
Age 50-- 5 years(18%), 10 years (15.2%) 15 years(13.2%) 20 years(1.5%)
Age 55--10 years(15.3%), 15 years(14%), 20 years(3.7%)
Age 59--10 years(15.3%), 15 years(14%), 20 years(3.7%)



21 years of service and up says 0% contribution.


Hope that helps.....


Bye Bye--General Lee

 

[Erndogg]

Age 30-- 5 years of service (5.9%), 7 years of service (5.1%)
Age 40-- 5 years of service (12%), 7 years (10.6%) 10 years (8%)

Gen,
Thanks for the info!! I am 37 right now and 15% sounds pretty good on the surface but our TA was probably voted down because our under 50 guys would not reap the same benefits as the DB guys at 2.4 (Given the returns on investments etc....)

It's good to compare with what the rest of the industry is coping with. Hopefully, these retirement plans dont come under attack with each negotiations in the future. (wishful thinking??).
Until then I wish all the guys/gals in the industry the best in defending our retirement nest eggs.

 

[Dan Roman]

Thanks General.

 

[Erndogg]

Gen,

Found this on our Alpa website go to: http://www.watsonwyatt.com/us/pubs/insider/showarticle.asp?ArticleID=13811&Component=The+Insider

Has some great comparisons between DB and DC plans/401K.