Tim Nelson
Veteran
I'm guessing that the window between late September - prior to Thanksgiving will be critical. That's the window. If something doesn't happen then, then you can prolly count on these negotiations pushing section 6, in 9 months after that window. The IAM has to make its move prior to the 3rd pension cuts. And the cuts will happen whether the TWU members come in or not. The cuts have to be massive this time, just like last time. The reports heavily favor a complete elimination of all unreduced plans. I mean we can talk about benefit amounts and play the math game all day, but the bottom line is that us airline peeps in this plan will have to suck it up and be forced to work until at least 65. Forget about medical bridges since you won't be able to collect retirement until 65. Next to the biggest problem is the misguided assumptions in the IAMNPF since the Trustees have continue to use outdated assumptions which create massive losses in the plan. They are still using 7.5% interest when it should be lower, and they need to better estimate life expectancy as participants are living much longer than their very low assumptions. Because of these 2 items, the liabilities took an additional loss of $50 million. Another factor is that their estimate of the # of participants who quit or walk away prior to becoming eligible for retirement benefits is less than they predict. When LUS came into the plan, we were lucky insomuch that we came in immediately prior to the 2003 cut (actually 1 month prior). This kept us on the A schedule until the next cut. We also got service credit imputed.
I'm not sure what the plan will do for any new TWU prey. I'm guessing that they would imput service credit on them as well since it may not matter if they make new funding policies that eliminate the unreduced plans.
Whatever the case, defined pensions are gone. Stick a fork in them. The laws, etc., are killing these dinosaurs. Basically everyone wants your money and now everyone can take it from you unless you are 80 years old. That's the law. Everything else is too much of a pyramid to survive. The average age is old and unless we can convince a culture shift with millennials that they need to go back to the past and hand money to Pension bosses, we are in big league trouble. Simply unsustainable.
That said, I think PJ wants a new contract and deserves one. But neither him and me have to ditch our medical and small stations without grandfather rights. And no way in hell should we lose catering. It survived 2 bankruptcies and there is no reason why it should be blown up now. And God only knows I don't want any comparison to the United contract. That contract is a complete disaster. It's a company hand book. It has all the cosmetic things like wage, decent retirement, but lacks language, grievance procedure that has teeth, has unlimited part time, boatloads of Temp agents that hang around for 360 days, and no union rules at all.
