US Airways (east) PBGC Question

[reepicheep]

Can someone help me out - can USAir pilots whose pension was terminated and taken over by the PBGC begin taking benefits after at age 50 even if they are still employed by US Airways?

I thought I had read that some pilots are doing this but the PBGC tells me no you have to resign or reach age 60 to begin taking benefits.

 

[LearLove]

I don't know about 50 but I do know many over 60 are taking it while working for AAA.

 

[jp1030]

You can only start drawing the pbgc money at 50 if you have retired, or quit. you have to reach 60 to draw if your still there.

 

[PHXFLYR]

What is the average PBGC payout ?

PHXFLYR

 

[Metrojet]

What is the average PBGC payout ?

PHXFLYR

not to flame, but why do you care?

Metrojet

 

[j41driver]

Probably about 20-25% of what their retirement was supposed to be...

 

[Dogwood]

You can only start drawing the pbgc money at 50 if you have retired, or quit. you have to reach 60 to draw if your still there.

I was Furloughed in 2003, then pseudo - early retirement.

Started taking the PBGC cash at 50.

About $800/mo. after Fed Taxes. I was with the company roughly 18 years.

 

[reepicheep]

And note that the monies were divvied up according to actuarial analysis - not seniority/LOS!

If you were relatively senior/relatively young you got hosed even worse.

 

[CitationLover]

And note that the monies were divvied up according to actuarial analysis - not seniority/LOS!

If you were relatively senior/relatively young you got hosed even worse.

Google "PBGC 4044 Asset Allocation" to see how it was done.

Basically, the plans assets cover current retirees first, then active participants capped at the pbgc max benefits, then if any money is left active participants past the cap. The money usually runs out at the capped benefits. The problem is the federal law capped pilots retirement at age 60, but the PBGC reduced its max benefit cap from age 65. The governments right hand didn't speak to its left hand and people got hosed on an "early retirement reduction" from 65 when it should have been from age 60.

Seniority has nothing to do with federal law regarding pension plans.

 

[Bringupthebird]

Probably about 20-25% of what their retirement was supposed to be...

Think about what the Alabama Teachers Retirement fund lost in its USAirways investment. Taxpayers in AL got hosed too!