Letter to pilots from Dave!

us10

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Sep 11, 2002
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To: All US Airways Pilots
From: Dave Siegel
Date: January 16, 2003
I want to update you on the pension issue as I know how important this is to you and your families.
The U.S. Bankruptcy Court in Alexandria, VA is conducting a hearing today on the Company’s disclosure statement and plan of reorganization. (The hearing may extend into Friday, depending on the handling of a lengthy agenda.) During these proceedings, the Company’s amended disclosure statement will address the subject of the pilot pension plan. As required to complete our successful reorganization, we will lay out a dual path: we are actively pursuing legislative relief that would implement a restoration funding plan, or if unsuccessful in that effort, we will be forced to file a distress termination of the existing plan.
Should a termination occur, I urge you to carefully remember the following key points, which are part of our revised restructuring agreement reached with ALPA in December:
· Terminating the existing pilot pension plan will not mean that you will be left without a pension benefit. By working with ALPA, the existing plan will be replaced with a new plan so that upon retirement, pilots would receive benefits from two plans that when combined will represent your retirement income.
· Any follow-on pension plan will have the same funding levels by the Company that would have been made if a restoration funding program was allowed. There will be no financial windfall for the Company under this plan.
The replacement plan will be crafted to recognize the sacrifices already made by our pilots as well as the demographics of our pilot workforce, which we know is senior and made up of many pilots that are age 45 and above and clearly focused on retirement.
The Company is continuing to devote the very best financial, legal and political resources to this matter. One way or another we must resolve this issue prior to the plan of reorganization being mailed out for a vote by our creditors in late January. In order to draw the final $200 million of our debtor-in-possession financing, we must also secure ATSB approval of our revised business plan, which must include a solution to the pension issue. The ATSB will not act until this matter is resolved.
I know this is a deeply personal issue for you. Our preferred path is to achieve a legislative solution. However, no matter what the outcome, we will have viable options that provide for your retirement income. You will have a pension and no one should believe otherwise. Likewise, do not assume your final pension benefit will be reduced to the PBGC maximum of approximately $28,000 per year because with a replacement pension plan, that will not occur. The only way your pension benefit would be reduced to the PBGC level is if the Company was to liquidate -- and I have no intention of letting that happen.
 
OP
U

us10

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Sep 11, 2002
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[blockquote]
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On 1/16/2003 4:06:17 PM algflyr wrote:

3,579.55 is based on age 65. All pilots must retire at age 60. Your quote said retiring at a younger age would mean less money. What is the rate for age 60? Was Seigel right?
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[/blockquote]



Dave indeed did get his facts straight the annual PBGC maximum benefit at age 60 is $28,585.20.
 

algflyr

Veteran
Aug 21, 2002
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3,579.55 is based on age 65. All pilots must retire at age 60. Your quote said retiring at a younger age would mean less money. What is the rate for age 60? Was Seigel right?
 

Biffeman

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Nov 25, 2002
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Dave needs to get his facts straight:[BR][BR][A name=estimates] [BR][BR][FONT face=Helvetica color=#000080]Q. [/FONT][FONT face=Helvetica]What is the maximum amount that PBGC can guarantee? [/FONT][BR][BR][FONT face=Helvetica color=#000080]A.[/FONT][FONT color=#000080] [/FONT]PBGC's maximum benefit guarantee is set each year under provisions of ERISA. For pension plans ending in 2002, for example, the maximum guaranteed amount is $3,579.55 per month ($42,954.60 per year) for a worker who retires at age 65. This guarantee is lower if you begin receiving payments before age 65 or if your pension includes benefits for a survivor or other beneficiary. The table at the end of this booklet shows PBGC's maximum guarantee for retirement at various ages. [/A][BR]
 

ONTHESTREET

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Aug 20, 2002
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Per FAA regulations, Pilots must retire at 60. This probably accounts for the lower figure that Dave states.
 
C

chipmunn

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Biff:

Your quote came directly from the PBGC's website, but you seemed to have missed that a pilot must retire at age 60, so they're penalized even more by the government with the PBGC's system. For a person who seems to understand the law, I'm surprised you missed this key point...

US10's comment of "Dave indeed did get his facts straight the annual PBGC maximum benefit at age 60 is $28,585.20" is accurate and correct.

Every other employee can work to age 65 and receive more than $44,000 per year from the PBGC, but a pilot legally cannot and loses about $16,000 per year to get a total of $28,585.20.

How fair is this?

What's interesting is that in a few short conversations tonight, Dave's letter seemed to have fueled the fire with the MEC and rank-and-file, which is now turning into a full blown inferno.

Chip
 

autofixer

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Aug 20, 2002
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www.usaviation.com
[blockquote]
----------------
On 1/16/2003 8:00:40 PM savyinvestor wrote:

I don't understand the pilot"inferno". From the letter it sounds like the pension will be there one way or the other. Whats the beef?
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[/blockquote]So you expect the pilots to trust this management after they just stabbed them in the back? They "claim" that there will be some sort of retirement down the road, but what does that mean? What they really mean is, "Keep the planes flying and show up to work and will will take care of you..." "Trust us, we know how to run an airline."
 

fatburger

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Aug 30, 2002
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As usual, biffeman is wrong regarding a fact about ALPA and instead of admitting it he attacks the messenger. You're a real "stand up" guy biff!!
 

ONTHESTREET

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Aug 20, 2002
198
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[blockquote]
----------------
On 1/16/2003 8:00:40 PM savyinvestor wrote:

I don't understand the pilot"inferno". From the letter it sounds like the pension will be there one way or the other. Whats the beef?
----------------
[/blockquote]


Mgmts. track record does not bode well for "Taking them at their word".

To be frank, CWA does not trust him, IAM does not trust him, AFA does not trust him, and ALPA does not trust him.

So far everytime was "The last concession". Pilots are up to what 3 rounds now...or is it four? U managment is kind of like the junkie doing his "last" hit.......no really this is the last.....no really really this is the last!!

I doubt they are done with the CWA and IAM yet either.

Meanwhile U is still throwing money away all over the place. Pee-Poor scheduling, double crews, I think thay have monkeys making the route structures.

U basically has the labor costs of Southwest now, not quite but getting close. It seems to me that if you want to save an airline you would look to the one that is actually making money. Instead U seems stuck on the RJ savior track.....Not working for UA, Nor American, or Delta.... All losing money by the truckload.

On the otherhand, Jetblue...Point to point, no rj's doing decent. Southwest...not one RJ, now much bigger than U and MAKING MONEY!!!!

I keep hearing about labor costs....I know a SouthWest 737 Capt. that is pulling in 175,000 a year. they are a little light in the pension dept. but it is coming. U pilots are about on par with Luv now. (Actually U is paid a little less for the narrowbody stuff now I think)

It seems to me that we should look to the moneymaker for inspiration....not the rest of the also rans!

Come on Dave.....show us what ya got!!!!!! I will take Southwest pay and work rules...just quit blowing sunshine up my rear!!!!!
 

Formatman

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Aug 20, 2002
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[blockquote]
----------------
On 1/16/2003 7:27:12 PM chipmunn wrote:

Biff:

Your quote came directly from the PBGC's website, but you seemed to have missed that a pilot must retire at age 60, so they're penalized even more by the government with the PBGC's system. For a person who seems to understand the law, I'm surprised you missed this key point...

US10's comment of "Dave indeed did get his facts straight the annual PBGC maximum benefit at age 60 is $28,585.20" is accurate and correct.

Every other employee can work to age 65 and receive more than $44,000 per year from the PBGC, but a pilot legally cannot and loses about $16,000 per year to get a total of $28,585.20.

How fair is this?

What's interesting is that in a few short conversations tonight, Dave's letter seemed to have fueled the fire with the MEC and rank-and-file, which is now turning into a full blown inferno.

Chip
----------------
[/blockquote]

Chip, you really need to take this...to save the company you should take whatever it offers you! This is what you were telling the CWA not to long ago...the tables have turned, haven't they?
 

autofixer

Veteran
Aug 20, 2002
1,804
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www.usaviation.com
Formatman, You are foolish if you think that management is through with CWA, AFA or IAM! I do not pretend to know what else they can do to the CWA, but I am sure that this back stabbing bunch can come up with something creative! Remember, they always start with ALPA.
 

libertybell

Senior
Jan 5, 2003
320
9
Chip my pension was frozen back in 94! Your breaking my heart! Let me get you a box of Tissue. I feel so bad your getting screwed with yours

NOT!!!!!!!
9.gif']
 

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