Pension relief coming..which is huge

[B1900DFO]

P3-adub


What is wrong with a 747 captain making 300k+/year? Airline pilots have traditionally made good money. I would imagine there are many thousands of lawyers making well over 300k/year. If you are responsible for a 250 million dollar aircraft, 400 lives, and the potential of hundreds of millions to billions in lawsuits if you screw up and bury one in the ground then I would argue that a 300k salary is definitely not out of line.

 

[CitationLover]

People are happy about this, especially United pilots, because it will make it more difficult for management to terminate the pension plans.

typhoonpilot,

please understand that MANAGEMENT can terminate a plan WHENEVER they want to (it can be fully funded or not funded at all it doesn't matter). this legislation may hampen the PBGC from forcing terminations, however the legislation only appears to address the DRC on the funding side and not the applicable PBGC IRC regulations.

i'm still checking on the pbgc take back (3 years sounds right if memory serves me correct). there is also some benefit improvements that they phase in over a five year period they could cut. PBGC is a four letter word for a reason.

all this bs would be averted by just changing the very low PBGC interest rates and the low RPA current liability rates that the DRC is based on. simple. but alas congress, in their typical dc fashion, like to just put another bucket under the leaking one rather than patch the holes.

 

[FDJ2]

typhoonpilot,

please understand that MANAGEMENT can terminate a plan WHENEVER they want to (it can be fully funded or not funded at all it doesn't matter).

CitationLover, depending on the contract language, management can not terminate a contractual obligation, such as a defined benefit plan, whenever it wants to, anymore than it can change a contractual pay rate or work rule. If on the other hand an employee does not have a contract, than management has more options, but there are still some restrictions.

 

[CitationLover]

fdj2,

you are correct that contractual language must be adhered to, however notwithstanding that what i said was true. this legislation does nothing to change that.

 

[typhoonpilot]

CitationLover, depending on the contract language, management can not terminate a contractual obligation, such as a defined benefit plan, whenever it wants to, anymore than it can change a contractual pay rate or work rule. If on the other hand an employee does not have a contract, than management has more options, but there are still some restrictions.

Thanks FDJ2, you beat me to it, but that is what I would have said in reply.

all this bs would be averted by just changing the very low PBGC interest rates and the low RPA current liability rates that the DRC is based on. simple. but alas congress, in their typical dc fashion, like to just put another bucket under the leaking one rather than patch the holes.

Yes, this is true, but the near sighted management that donate millions to re-elect these clowns aren't in favor of such legislation since it would mean that they had to contribute more money into the pension plan.

My English friends were aghast when I told them my pension had been terminated, they couldn't understand how that could happen since the laws in the U.K. make it necesary for pensions to have very solid funding levels.

Typhoonpilot

 

[CitationLover]

typhoon,

in england they are allowed to opt out of social security in lieu of an er sponsored pension. wish we could. gwb wants this to happen.

also, changing the interest rates would allow them to contribute LESS to the plan. the pension "underfunding" is due to artificially low interest rates. it'll be interesting to see how well they recover after the market stock returns of last year.

i agree mgmt should be held accountable also. these idiots reward themselves and usually have no worries against them. their greed is basically why i left the pension industry.