PBGC
- Thread starter Mtnman928
- Start date
Thanks for posting this ..... If you are a US Airways employee between the age of 50-55 here is what you face. Congress will be effectively cutting you off from Social Security soon. The PBGC is not funded and the fine print offers you no guarantee. This includes your PBGC, IRS retirement health-care. Your 401K has recovered some, but after taking a 40% cut in pay and benefits during two bankruptcies you probably haven't had enough "extra" cash to contribute properly. US Airways contributes nearly "0" to it.
The Government could do the tax payer (you and I) a big favor by making these huge airlines take back their pension responsibilities from the PBGC as a part of approving any mega mergers. Are our elected officials smart enough to do it ..... nope!
If the PBGC survives I have a question? If there is a change of control, lets say "AIRLINE A" buys us and US Airways goes away can former US Airways employees age 55 start drawing what little the PBGC owes them and continue working at "AIRLINE A".
The Government could do the tax payer (you and I) a big favor by making these huge airlines take back their pension responsibilities from the PBGC as a part of approving any mega mergers. Are our elected officials smart enough to do it ..... nope!
If the PBGC survives I have a question? If there is a change of control, lets say "AIRLINE A" buys us and US Airways goes away can former US Airways employees age 55 start drawing what little the PBGC owes them and continue working at "AIRLINE A".
Poug Darker
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I've heard that individuals covered under PBGC can start collecting their benefits if the company they work for goes out of business, or ceases to exist.
In a CoC situation, LCC nee USAirways would cease to exist, replaced by another corporation. This event would trigger the provision for all those covered under PBGC, not just those over 55.
Right now, after age 50, if an employee quits, they can start collecting, albeit at a lower rate than if they had stayed to 'normal retirement age', defined as 65.
Cheers.
If a merger happens with AA, I hope AA is the surviving entity. Senior US-CWA members could use the extra PBGC payments to beef up their 401k's before departing. Might keep a lot of us out of the welfare lines after retirement.
http://www.airlineforums.com/topic/54678-is-a-change-in-control-coming/
http://www.airlineforums.com/topic/54678-is-a-change-in-control-coming/
Real tired
Veteran
Please show a link to this information.
Real tired
Veteran
You are correct, and in the case of Maintenance, we can start our full benefits (normal retirement) from the PBGC at age 63.
After the merger between AWA and USAirways, we were sure that a CoC took place and we would be able to collect our benefits from the PBGC and continue to work here, but the company carefully worded the merger to make sure that never took place.
That was for the "hired help" only. For management, that was a different story. A CoC took place for them, and the CoC bonuses flowed like beer from a tap on Friday night. Just another carefully planned screw jobs by USAirways management.
Didn’t Mechanic and Related have years of service + age = 80 for full retirement
Real tired
Veteran
HAD is more the word, and with full medical.
I know many that took advantage of that, and when the active people lost our pensions , the retirees lost theirs too and saw their benefits greatly reduced.
PITbull
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The PBGC is not "fully" funded. There is a difference.
Congress can't vote to cut off folks from social security because of pensions they collect. Workers have paid into the system all of their working lives. Social Security is NOT an entitlement, but it is an EARNED benefit...same with MDC.
Social Security is NOT medical assitance benefit, nor is it welfare, even though the checks come from the Treasury, it is EARNED as you and your employer both contribute into this fund your entire working careers.
IT IS CONGRESS WHO STEALS FROM THE FUND TO PAY OUT ENTITLEMENTS, AND OTHER GOV. SUBSIDIES LIKE INTERNATIONAL PAYMENTS TO JUST ABOUT EVERY COUNTRY IN THE WORLD TO PURCHASE THEIR FRIENDSHIP AND ALLEGIANCE.
My point is the IAM M/R plan allows for full retirement with 80 points of years and age when it was terminated so therefore one can receive full PBGC pay out with this threshold. Were agents have to wait till there 65 to get full retirement regardless of age and service
Mechanic and Related also have NO Social Security offset and the 80 points age/service is full retirement regardless of age as long as you meet the 80 points age/service.It was/is a sweet deal when it was in full force
Real tired
Veteran
Actually, it was a 85 point plan. And a sweet deal that many took advantage of, and then had the rug pulled out from underneath them.
Under our plan, we can draw at age 50 at a reduced rate. At 55, we can opt for the Health Care Tax Credit until 65 and Medicare kicks in.
