WSJ on SWA/AT Merger

[HowardBorden]

PCL--agree 100% I'd much rather see retirement improvements than a rate increase-
For me, that and reserve improvements are my issues this contract

We need all three of the R's in my opinion. Rates, Reserve and Retirement.

 

[zymotic]

Ironically, I think SWAPA actually produced such a report (by copying DALPA's, but still). ALPA has a full summary in PDF in the Economics Library, but it's not available publicly, so I can't link to it.

Here's just a quick summary of the highlights so I don't have to type out the whole thing:

United: 16% B & C Fund
Delta: 15% B-Fund (sorry, I was off by a % in the earlier post)
Hawaiian: 15% B-Fund for all newhires (up to 19.4% for pilots hired pre-2005)
Alaska: 13.5% B-Fund
AMR: 14% (match only, thanks to the bankruptcy)
USAirways: 10% B-Fund now, same as AMR when merged
SWA: 9.3% (match only)

For what it's worth, the day the "New American" merges we will get a 14% defined contribution and the first of 2014 16%. I don't know if the AA guys are currently working off a match or defined contribution. However, after merger date (coming this quarter) it's not a match.

 

[jonjuan]

They're untouchable.

Until they're not.....it all may be a mute point

http://online.wsj.com/article/SB10001424127887324050304578412932073225110.html

REVIEW & OUTLOOK Updated April 12, 2013, 12:13 p.m. ET
Now He's After Your 401(k)
The White House pulls a switcheroo on retirement savings accounts.

The White House explanation is that some people have accumulated "substantially more than is needed to fund reasonable levels of retirement saving." So Mr. Obama proposes to "limit an individual's total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million for someone retiring in 2013."

The Occupy Wall Street crowd (Wave, PCL)will be cheering this ideological assault, but the occupiers who mature into productive citizens will someday find themselves in the cross-hairs.

The Administration's political motive here is two-fold: First, it's a redistributionist play and a revenue grab. But for many on the left it's also about reducing the ability of individuals to make themselves independent of the state. They have always disliked IRAs, just as they oppose health-savings accounts, because over time they make Americans less dependent on federal entitlements or transfer payments.

 

[PCL_128]

PCL--agree 100% I'd much rather see retirement improvements than a rate increase-
For me, that and reserve improvements are my issues this contract

If I were sticking around for the polling, those would be my top priorities, as well. The SWAPA CBA has a lot going for it in rates of pay, benefits, and line holder work rules. The deficiencies are in retirement, and definitely in reserve work rules. I'd probably put the latter as the highest priority, in fact. People are going to be spending years and years on reserve now, so the idea that there isn't even a preference for call first or last, aggressive pickup, a bucket list viewable online, etc., is really not a good thing. When reserve was a few months or a year, that could work, because at least they were giving you 15 days off, but I can't imagine living with those rules for years at a time. Especially if you're upgrading in your 50s.

 

[PCL_128]

Until they're not.....it all may be a mute point

The only thing they're talking about is taxing the contributions, not taking the money. Nice try.

 

[jonjuan]

The only thing they're talking about is taxing the contributions, not taking the money. Nice try.

For now. Standby if you your "gal" gets elected in '16.

 

[dalad]

How did that workout for the bankruptcy guys in the last 10-12 year? PBGC? They got basically nothing.

vs. SW 9.3% plus profitsharing.....and stock options (for those in the same era). The differences are stark.

Does SW need to do better? Of course, but to say other carriers over the same years did fine with pensions is ludicrous.

Red, your info is wrong. The pre BK contract froze the DB pension for DAL pilots. Mine was frozen with a $ 620k lump sum and a $6k per month annuity. A DC plan was set up at that time along with the 401k match of 2%. Post BK we received the plan which we have now. What did I receive? I got the full MPPP plan at 105k which was rolled over inta an IRA worth just north of 200k today. I also received a bankruptcy claim payment of approximately 230k and a bankruptcy note payment of 84k. Some of that money was used to fill pilots up to the 415c limit for two years. So I now sit on a 401k worth 930k today, a rollover IRA worth 200k, and a DC plan that is now worth 480k. That's north of $1.5 million. Lets not leave out the PBGC promise. If I choose to collect at 60, that's $4.2k per month, or $ 6.9 k per month at 65. Add in $2.4k per month for SS and that becomes $9.3k per month at 65. So I would say your numbers are off.

 

[race#53]

Don't count on PBGC if you have income from any other source even SS...check what they did to the EAL guys.

 

[nimtz]

Why waste negotiating capital on retirement? SWAPA can just lobby for Age 70.

 

[Tripower455]

Why waste negotiating capital on retirement? SWAPA can just lobby for Age 70.

It'll take ALPA to get it passed though, like age 65........

 

[dalad]

Don't count on PBGC if you have income from any other source even SS...check what they did to the EAL guys.

I disagree. Not planning on anything from the Government Ponzi scheme either. But, if I get anything from PBGC and SS it will be icing on the cake.

 

[scoreboardII]

Until they're not.....it all may be a mute point

http://online.wsj.com/article/SB10001424127887324050304578412932073225110.html

REVIEW & OUTLOOK Updated April 12, 2013, 12:13 p.m. ET
Now He's After Your 401(k)
The White House pulls a switcheroo on retirement savings accounts.

using the 3% rule, you need just over $7 million to make that amount of coin for a reasonable and prudent 3% rule withdrawl rate.

The president is jacked on this, $3 mil gets you $90,000 a year. Sorry Charlie, take out medical, taxes and food costs and you'll be taking home less than $50,000 with the almighty ones plan.

******************** him.

Thanks to him, my going in plan is to plan on zero percent growth of my investments.

 

[slaquer5]

The only thing they're talking about is taxing the contributions, not taking the money. Nice try.

It's called baby steps . I doubt most of use I'll ever see our SS money owed to us.


Nice try though .

 

[PCL_128]

It's called baby steps . I doubt most of use I'll ever see our SS money owed to us.

Probably true. But then again, I don't think you and I should get it. SS should be treated as a safety net, not as a retirement plan. People with $5 million in a 401k shouldn't be collecting money from the government every month.

 

[slaquer5]

Probably true. But then again, I don't think you and I should get it. SS should be treated as a safety net, not as a retirement plan. People with $5 million in a 401k shouldn't be collecting money from the government every month.

So you and I put the most into SS and we should not get it?

I disagree, but I am sure that will be the quick fix with the goberment .