Iam Retirement

[Broke@SFO]

As more details become known about the IAM's agreement, it's apparent a civial war could erupt. There were many heated dicussions this morning at the SFO Turbine Shop when some of the storekeepers started bragging that they are going to retain thier retirement. Unlike any of the other labor groups, Ramp&Stores and Customer Service will recieve thier full retirement. Here's the deal.

United gave in on the IAM's demand that contributions to a replacement pension fund be steered into the Union's National Pension Plan rather than a company 401(k).
The IAM National Pension Plan provides:

1)A guaranteed benefit after 5 years of vesting service
2)An unreduced retirement benefit available at any age after 30 years of service
3)An unreduced pension benefit at age 62, with 20 years of service
4)A monthly pension based on your employers' contribution rates and your length of service
5)Spouse protection in the event of your death

United will turn over the IAMs share of the retirement money destined for the PBGC. Also, United will fund it monthly at a rate of 4% of the combined wages of everyone under the IAM agreement. What this means is that ramp and stores and customer service peresonal could and in many cases will get more in monthly retirement benefits than the AMFA's mechanics. Here's the kicker, some of the senior ramp and stores personal will get a higher pensions amount that some pilots. Because the pilots have to retire a age 60 thier benefits are greatly reduced. I think the maximum yearly amount for age 60 is $28,000. The pilots are NOT going to like this!!!!!!!!!!!! 🙁

 

[NewHampshire Black Bears]

As more details become known about the IAM's agreement, it's apparent a civial war could erupt. There were many heated dicussions this morning at the SFO Turbine Shop when some of the storekeepers started bragging that they are going to retain thier retirement. Unlike any of the other labor groups, Ramp&Stores and Customer Service will recieve thier full retirement. Here's the deal.

United gave in on the IAM's demand that contributions to a replacement pension fund be steered into the Union's National Pension Plan rather than a company 401(k).
The IAM National Pension Plan provides:

1)A guaranteed benefit after 5 years of vesting service
2)An unreduced retirement benefit available at any age after 30 years of service
3)An unreduced pension benefit at age 62, with 20 years of service
4)A monthly pension based on your employers' contribution rates and your length of service
5)Spouse protection in the event of your death

United will turn over the IAMs share of the retirement money destined for the PBGC. Also, United will fund it monthly at a rate of 4% of the combined wages of everyone under the IAM agreement. What this means is that ramp and stores and customer service peresonal could and in many cases will get more in monthly retirement benefits than the AMFA's mechanics. Here's the kicker, some of the senior ramp and stores personal will get a higher pensions amount that some pilots. Because the pilots have to retire a age 60 thier benefits are greatly reduced. I think the maximum yearly amount for age 60 is $28,000. The pilots are NOT going to like this!!!!!!!!!!!! 🙁

[post="274769"][/post]​

+++++++++++++++++++++++++++++++++++++++++++++++++++

If your correct(and it may turn out that you are), that will be unfortunate.

But one thing is for sure, UA ALPA won't be "withholding services" from the Tilton & Co. anytime soon.
Why?
Because THEY have FORGOTTEN the concept-BIG TIME !!!!!!!!!

NH/BB's

 

[herkav8r]

As for the pilot's, let me see, I get 6% in a fund that I control not the IAM. I am immediately vested and I propably won't be paying a high fee to IAM for management of my account. The last thing I want is a Union running my retirement. I will control that myself.

 

[Boomer]

As more details become known about the IAM's agreement, it's apparent a civial war could erupt. There were many heated dicussions this morning at the SFO Turbine Shop when some of the storekeepers started bragging that they are going to retain thier retirement. Unlike any of the other labor groups, Ramp&Stores and Customer Service will recieve thier full retirement. Here's the deal.

United gave in on the IAM's demand that contributions to a replacement pension fund be steered into the Union's National Pension Plan rather than a company 401(k).
The IAM National Pension Plan provides:

1)A guaranteed benefit after 5 years of vesting service
2)An unreduced retirement benefit available at any age after 30 years of service
3)An unreduced pension benefit at age 62, with 20 years of service
4)A monthly pension based on your employers' contribution rates and your length of service
5)Spouse protection in the event of your death

United will turn over the IAMs share of the retirement money destined for the PBGC. Also, United will fund it monthly at a rate of 4% of the combined wages of everyone under the IAM agreement. What this means is that ramp and stores and customer service peresonal could and in many cases will get more in monthly retirement benefits than the AMFA's mechanics. Here's the kicker, some of the senior ramp and stores personal will get a higher pensions amount that some pilots. Because the pilots have to retire a age 60 thier benefits are greatly reduced. I think the maximum yearly amount for age 60 is $28,000. The pilots are NOT going to like this!!!!!!!!!!!! 🙁

[post="274769"][/post]​

--------------------------------------------------------------

Just to be clear, it seems that you are claiming that the IAM, the PBGC and UAL all agreed to reinstate the DBP and transfer the former balances of those funds from PBGC/UAL controlled accounts in to ones now being controlled by the IAM.

I would advise anyone to ask for written proof from either the IAM or UAL that funds previously held in retirement accounts now under PBGC control will actually be transferred anywhere.

 

[synchronicity]

As for the pilot's, let me see, I get 6% in a fund that I control not the IAM. I am immediately vested and I propably won't be paying a high fee to IAM for management of my account. The last thing I want is a Union running my retirement. I will control that myself.

[post="274787"][/post]​

I'm also wondering how a 4% contribution rate will be enough to fund pension amounts, assuming they remain at or near the old amounts (for PCE, this was 1.63%* years of service * average final compensation, with "average final compensation" being the average of the 5 highest years out of the last 10).

Like many others, I am a bit suspicious of the union running a DB pension plan. As I asked before, anyone know what management and/or administrative fees IAM gets from the plan?

-synchronicity

Roth IRA and Rollover IRA with Vanguard at under .2% annual expense ration, thankewverymuch

 

[767jetz]

The pilots are NOT going to like this!!!!!!!!!!!! 🙁

[post="274769"][/post]​

That's such a ridiculous statement. I couldn't care less what the IAM negotiated. ALPA got our deal, AMFA got theirs, and the IAM got what they got. Good for everyone.

As far as the "give", everyone met the $ amount of cost cutting that the company targeted, in one way or another. So the give backs were distributed equitably, which was the main concern of ALPA. Pilots could have gotten a much sweeter retirement plan, but it would have cost us an equal amount from somewhere else. It was up to each group to decide where the cuts were coming from.

The contribution from the company to the IAM's pension is 4% of earnings from what I understand. So why would any other employee group care if that 4% goes to a DC plan or a DB plan? I certainly don't.

I'm not sure how this is going to work, but if IAM National has a pension established, and putting that $ into the IAM pension works out better for those employees, then more power to them. I would also guess that the workers who are transfering from UA's pension to the IAM pension might be having their benefits frozen to some extent. I assume this only because a 4% contribution is not THAT much.

If ALPA or AMFA had a pension plan available to them, and switching from UA to the union's pension was a viable option, I'm sure it would have been explored.

I would caution everyone before looking over each other's shoulders and claiming someone else got a better deal. I'm sure that's not the case when you examine the details.

767jetz

P.S. Now that this is behind us, wouldn't it be a good time to move forward and get this place rolling again?

 

[maddogdriver]

QUESTIONS:

What if Ramp decides to leave the IAM??
Is the IAM pension plan protected under the PBGC???
Is the IAM plan run the same as a corporate pension plan (subject to the same rules & regs)?

The IAM had a choice............401k type investment VS. Union National Pension Plan. If you are not with the IAM, it doesn't matter. Your union has negotiated for you. Get over it, Get on with it.

 

[uafa21]

Now let's see what the AFA gets. We have nothing at this moment and this deal with the Iam gives us something to go for.

 

[767jetz]

Now let's see what the AFA gets. We have nothing at this moment and this deal with the Iam gives us something to go for.

[post="274837"][/post]​

I don't think the AFA has a national union pension plan, so there really is no basis for comparison.

 

[UAL_TECH]

As more details become known about the IAM's agreement, it's apparent a civial war could erupt. There were many heated dicussions this morning at the SFO Turbine Shop when some of the storekeepers started bragging that they are going to retain thier retirement. Unlike any of the other labor groups, Ramp&Stores and Customer Service will recieve thier full retirement. Here's the deal.

United gave in on the IAM's demand that contributions to a replacement pension fund be steered into the Union's National Pension Plan rather than a company 401(k).
The IAM National Pension Plan provides:

1)A guaranteed benefit after 5 years of vesting service
2)An unreduced retirement benefit available at any age after 30 years of service
3)An unreduced pension benefit at age 62, with 20 years of service
4)A monthly pension based on your employers' contribution rates and your length of service
5)Spouse protection in the event of your death

United will turn over the IAMs share of the retirement money destined for the PBGC. Also, United will fund it monthly at a rate of 4% of the combined wages of everyone under the IAM agreement. What this means is that ramp and stores and customer service peresonal could and in many cases will get more in monthly retirement benefits than the AMFA's mechanics. Here's the kicker, some of the senior ramp and stores personal will get a higher pensions amount that some pilots. Because the pilots have to retire a age 60 thier benefits are greatly reduced. I think the maximum yearly amount for age 60 is $28,000. The pilots are NOT going to like this!!!!!!!!!!!! 🙁

[post="274769"][/post]​

Good luck to you all and I hope it turns out for the best.
Having had a few contracts under the IAM myself, I am skeptical that this will happen as advertised.

B) UT

 

[ualdriver]

I'm but one ALPA member and I don't have a problem with the deal the IAM cut concerning the IAM multi-employer plan. I'm with jetz. More power to the IAM if they were able to transfer the plan to one of their own and it meets the requirement of their 'fair share' of the 725M we all had to meet.

That having been said, I don't understand how the IAM taking over an underfunded pension plan to the tune of millions and millions of dollars and taking the 4 percent per year thereafter is somehow going to make a pension damaged IAM member whole? The math simply isn't going to work unless other non-ual members are VERY GENEROUSLY making up the shortfall somehow and are giving them a lot of free money! And if that's the case, can I join the IAM?

There's probably more to the story, but in any case I hope it works out for the best for the IAM guys&gals if that's what they want.

 

[Albatroz]

I don't think the AFA has a national union pension plan, so there really is no basis for comparison.

[post="274838"][/post]​

Never even thought about it until uafa21 and 767jetz postings. It turns out that CWA-AFA, I don't even know if it will be a good thing or not, might be able to go down IAM's road.
CWA has a Union pension plan, and AFA has ceased to exist as an independent Union. It is part of CWA. The CWA-AFA designation used, is just to get F/A's used to the CWA idea - specially at United. UA F/A's voted over 70%, if I remember correctly, against AFA joining CWA.
Is that what they are trying to do?
That is one that never occured to me! How are pensions run by Unions? Is that a good thing? Can PBGC, if things go wrong with a Union pension, take over the same way?
So, is that what AFA has been aiming for all along?

 

[Kev3188]

The question is: What all did the IAM give up language-wise in order to "protect the pensions?"

 

[synchronicity]

The question is: What all did the IAM give up language-wise in order to "protect the pensions?"

[post="274955"][/post]​

The question many of us are asking. Especially after the emphasis they put on "save the pensions"; I'm now wondering if that was in part a cynical ploy to allow them to give up deeper cuts elsewhere but trumpet the "we saved the pensions" line.

Yeah, great. There's a reason syncspouse saves the full 30% allowed into her 401(k).

-synchronicity

 

[novaqt]

I think everyone better wait and see what the plan is. It is my understanding that you have to be with the job for 30 years before you get 100%. So most jobs today no longer have that much longevity with a company. I also believe that the PBGC still has all the plans up to March and the IAM plan picks up after that. Does the 5 yr vesting begin then or is every IAM member grandfathered in?