USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
I think USAPA's lawsuit against the PBGC is a long shot, a very long shot. If USAPA or the East pilots think they can bully or even force the PBGC, the IRS, the SEC, the DOJ Bankruptcy Court, Towers-Perrine, and US Airways to force the governmnt to change legislation to pay PC4 pilots the age 65 benefit at age 60 or to do an investigation into fund transactions I have swamp land I want to broker to sell you.
The DB Plan is gone and was lost when John Davis and the other hardline union leaders (the same type of people who run USAPA today) refused to listen to every ALPA National R&I advisor and every MEC R&I Committee member to freeze the plan and create an "A" (DB Plan) and "B" (DC Plan) per Seth Schofields offer.
According to an official with direct knowledge of the DB Plan problem "the question isn’t really whether the pension was under funded. The real problem is that in 1990 when the IRS came out with FASB 106 which required all DB plans to account for the liability of their DB plan with a 20 year amortization. The gov’t thought they were doing a good thing by forcing companies to fund their plans."
"Instead what they did was set up a system of inevitable failure of most if not all DB plans. Prior to 1990 there was no amortization schedule on DB plans, they were considered on-going plans and as such the funding requirements and liability requirements where reasonably absorbed by most corporations."
"With the advent of FASB 106 the government set up a situation where if the country was doing well then the stock market was doing well and your company was doing well and there was no need to fund your pension plans. However, if the economic wind turned against you and the country went into a recession and the stock market went down your company would be hit with an unreasonable and in some cases a back breaking funding requirement. Now everyone knew these plans would enter into a temporary funding."
"ALPA and all the industry knew about this problem when it was first proposed. ALPA and the ATA fought the gov’t and tried to get FASB 106 modified or thrown out. The IRS refused to budge."
I wish USAPA and the Pension Investigation Committee would tell the pilots the history and all of the information to what really happened to the DB Plan so pilots do not throw away another $1,500 in hard earned money.
Regards,
USA320Pilot
The DB Plan is gone and was lost when John Davis and the other hardline union leaders (the same type of people who run USAPA today) refused to listen to every ALPA National R&I advisor and every MEC R&I Committee member to freeze the plan and create an "A" (DB Plan) and "B" (DC Plan) per Seth Schofields offer.
According to an official with direct knowledge of the DB Plan problem "the question isn’t really whether the pension was under funded. The real problem is that in 1990 when the IRS came out with FASB 106 which required all DB plans to account for the liability of their DB plan with a 20 year amortization. The gov’t thought they were doing a good thing by forcing companies to fund their plans."
"Instead what they did was set up a system of inevitable failure of most if not all DB plans. Prior to 1990 there was no amortization schedule on DB plans, they were considered on-going plans and as such the funding requirements and liability requirements where reasonably absorbed by most corporations."
"With the advent of FASB 106 the government set up a situation where if the country was doing well then the stock market was doing well and your company was doing well and there was no need to fund your pension plans. However, if the economic wind turned against you and the country went into a recession and the stock market went down your company would be hit with an unreasonable and in some cases a back breaking funding requirement. Now everyone knew these plans would enter into a temporary funding."
"ALPA and all the industry knew about this problem when it was first proposed. ALPA and the ATA fought the gov’t and tried to get FASB 106 modified or thrown out. The IRS refused to budge."
I wish USAPA and the Pension Investigation Committee would tell the pilots the history and all of the information to what really happened to the DB Plan so pilots do not throw away another $1,500 in hard earned money.
Regards,
USA320Pilot