Underfunded Retirement

[blzr]

Underfunded pilot retierment seems to be the last hurdle in the US AIR bankruptcy case. I have a couple of questions to ask some of you out there that are vested in some sort of airline retirement program.

1. How did U.S. Airways just recently realize that they were underfunding their pilots retirement?

2. Does anyone see this (UNDERFUNDING) to be a problem that other airlines will have to deal with in the near future?

3. DO you think, as a relatively new airline pilot (3 years), that I should get involved in company retirement, or keep funding my own separate IRA until the airline industry comes back to life again.

4. What percentage of curently flying airline pilots will be retiring over the next 3-5 year?


Thank you for your time, and whatever advice you can give.

 

[Dab]

blzr,


1. How did U.S. Airways just recently realize that they were underfunding their pilots retirement?

They new it all along, but because they just went bankrupt they can put the responsibility on the government to manage it. Basically, USAir management are a bunch of %^&@#$& crooks! They are stealing money from their pilots who had expectations about their futures that now will have to get jobs to fund their retirement after retiring from the USA if there’s a USAir to retire from.

2. Does anyone see this (UNDERFUNDING) to be a problem that other airlines will have to deal with in the near future?
Yes!

3. DO you think, as a relatively new airline pilot (3 years), that I should get involved in company retirement, or keep funding my own separate IRA until the airline industry comes back to life again.

Yes! If your company provides a pension take it. However put 15% or whatever the max is, into your 401(k). No matter what happens the company can't take that away from you, it's yours and it’s always fully funded. This includes any matching funds from your company too.

4. What percentage of currently flying airline pilots will be retiring over the next 3-5 year?
I don't have any idea?


Do yourself and your family a favor and do not plan on any pension from any company even when times get better. Finance your own retirement using the vehicles provided to you and you won't be disappointed.

1 - Right now you can put $3000.00 into an after tax ROTH IRA. Yes it's after tax, but all the growth later on down the line is tax-free baby! If your married put another $3000.00 into your wife's account. That's $7000.00 per year right there.

2 -401(k) max contribution is 11,500 per year not including your employers match so make sure you elect 15% or the max when you can. Actually it’s going up by $500.00 per year.

3 - And finally, it doesn't hurt to save additional $$ into another investment account to help if something goes wrong. Saving is how you protect you and your family. A company pension is great if you have one but don’t count on it. Oh the changes are coming I'm afraid and it doesn’t look good for pensions.
Good Luck!
dab

 

[cl-65link]

Underfunding of pensions at Northwest is a problem and they are using Pinnacle stock to help, and when the IPO goes through they will use the revenue generated from the sale to further fund their pensions. NW will have to pay, in 2003, twice the money they dumped into pensions in 2002.