Social Security Offset

[Red Tail Bear]

Could anyone enlighten me as to what this is and how it works? I've heard conflicting details, but if what I've been told is true, this issue alone should be enough to warrant union representation.

Thanks in advance for any info.

 

[Dignity]

Could anyone enlighten me as to what this is and how it works? I've heard conflicting details, but if what I've been told is true, this issue alone should be enough to warrant union representation.

Thanks in advance for any info.

To my understanding...the NW pensions are frozen and the accrued benefit is in place..period. DAL must assume the responsibility of the pension as it is outlined and it is separate from pre-merger DAL pensions.

 

[Kev3188]

Here's an article that explains it in pretty clear terms (from the Delta Ramp blog site):

"At Delta Air Lines our pensions were frozen NEVER TO GROW AGAIN. Many long term employees didn’t even vest any pension at all. Most Delta employees don’t know that our frozen, under-funded pensions have SOCIAL SECURITY OFF-SETS.

Social Security off-sets mean at retirement age when you get a check from Social Security, Delta takes from your pension HALF OF YOUR SOCIAL SECURITY MONEY!

At IAM represented Union carriers, THERE ARE NO SOCIAL SECURITY OFF-SETS. At Northwest, pre-bankruptcy retirements are still in effect.

IAM has also negotiated new IAM pensions for many of the carriers they represent. This National Pension Fund Plan is growing and independent from the carriers. It is protected and fully funded.


Example:

Delta Employee

Pension...............................$1,000
Social Security....................$1,000
Total...................................$2,000

Minus Off-set....................$ (500)

Take Home........................$1,500

2nd Pension? (Guaranteed Money)............NO
401(k)? (At Risk Money)............................YES

Northwest Employee

Pension.............................$1,000
Social Security..................$1,000
Total.................................$2,000

Off-set....................NONE

Take Home.......................$2,000

2nd Pension? (Guaranteed Money).........YES
401(k)? (At Risk Money).........................YES"


On top of that, there is a great OP-ed piece from a DL F/A here.

 

[North by Northwest]

No Union at NW has a SS off-set.

Here's another example of Union vs. NON Union at New Delta:



"One of the questions I have asked of both the Northwest and Delta executive teams during the merger process is: “What will happen to accrued sick time?â€￾ I call it the $39,000.00 question, because if you have accrued 1000 hours of sick time at a pay rate of $39.76, that is a valuable question that should be answered and not ignored. As of this date, that question remains unanswered. Our contract provides Northwest flight attendants the ability to accrue up to 1200 hours in our sick banks, while Delta policy allows a maximum of 84 PPT banked hours. A recent message from Rob Knight, Delta VP of Compensation, Benefits and Services, addresses recent improvements to their Paid Personal Time (PPT) policy. Mr. Knight stated that starting in 2010 Delta will allow up to 1200 PPT hours to be rolled into their Certified Time Banks, but as one Delta flight attendant wrote to me; “Let’s see, at 42 PPT hours A YEAR, it will take me about 29 years to build up to 1200 hours!â€￾

 

[Kev3188]

No Union at NW has a SS off-set.

Here's another example of Union vs. NON Union at New Delta:



"One of the questions I have asked of both the Northwest and Delta executive teams during the merger process is: “What will happen to accrued sick time?â€￾ I call it the $39,000.00 question, because if you have accrued 1000 hours of sick time at a pay rate of $39.76, that is a valuable question that should be answered and not ignored. As of this date, that question remains unanswered. Our contract provides Northwest flight attendants the ability to accrue up to 1200 hours in our sick banks, while Delta policy allows a maximum of 84 PPT banked hours. A recent message from Rob Knight, Delta VP of Compensation, Benefits and Services, addresses recent improvements to their Paid Personal Time (PPT) policy. Mr. Knight stated that starting in 2010 Delta will allow up to 1200 PPT hours to be rolled into their Certified Time Banks, but as one Delta flight attendant wrote to me; “Let’s see, at 42 PPT hours A YEAR, it will take me about 29 years to build up to 1200 hours!â€￾

Interesting. So I have ~1700 hours now (sick & OJI combined). what happens to my other ~500 hours under Knight's plan?

That's literally a $10,000 question...

 

[Red Tail Bear]

Here's an article that explains it in pretty clear terms (from the Delta Ramp blog site):

"At Delta Air Lines our pensions were frozen NEVER TO GROW AGAIN. Many long term employees didn’t even vest any pension at all. Most Delta employees don’t know that our frozen, under-funded pensions have SOCIAL SECURITY OFF-SETS.

Social Security off-sets mean at retirement age when you get a check from Social Security, Delta takes from your pension HALF OF YOUR SOCIAL SECURITY MONEY!

At IAM represented Union carriers, THERE ARE NO SOCIAL SECURITY OFF-SETS. At Northwest, pre-bankruptcy retirements are still in effect.

IAM has also negotiated new IAM pensions for many of the carriers they represent. This National Pension Fund Plan is growing and independent from the carriers. It is protected and fully funded.


Example:

Delta Employee

Pension...............................$1,000
Social Security....................$1,000
Total...................................$2,000

Minus Off-set....................$ (500)

Take Home........................$1,500

2nd Pension? (Guaranteed Money)............NO
401(k)? (At Risk Money)............................YES

Northwest Employee

Pension.............................$1,000
Social Security..................$1,000
Total.................................$2,000

Off-set....................NONE

Take Home.......................$2,000

2nd Pension? (Guaranteed Money).........YES
401(k)? (At Risk Money).........................YES"


On top of that, there is a great OP-ed piece from a DL F/A here.

Hey Kev,

Thanks for the info. This is pretty much what I had been told regarding the offset. Also the fact that some delta folks don't even know they have this is shocking. If these people are as much in the dark regarding their own affairs as they are about making a decision on representation then the IAM really has their work cut out for them.

 

[NewHampshire Black Bears]

Great Post Red Tail Bear !!!!

"Thats MY BOY"..

 

[NewHampshire Black Bears]

Could anyone enlighten me as to what this is and how it works? I've heard conflicting details, but if what I've been told is true, this issue alone should be enough to warrant union representation.

Thanks in advance for any info.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

It's BAD ENOUGH that Stealin' and Anderson(together) enabled NW employees to "take it in the shorts" over this VERY BAD deal,..........BUT, just as your leaving to start retirement, they say....."Hold On"........."We've got One Last.."P U S H" for YOU"


The Very DAY this "ABORTION" was announced,................Stealin' should have been CASTRATED at high noon, in the middle of..F..concourse, in MSP !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[tech2101]

Interesting. So I have ~1700 hours now (sick & OJI combined). what happens to my other ~500 hours under Knight's plan?

That's literally a $10,000 question...

Thank you for donating to the "New Delta" charity fund...