Retire Vs. Resign?

[davecope]

Can anyone distinguish for me the difference between "retiring" and "resigning" as it applies to USAirways' pilots?

In a recent code-a-phone or letter the ALPA writer referred to the disadvantage pilots suffer in comparison to other workers due to the fact that prior to age 50, pilots must "resign" and cannot retire. The writer just left that hanging with no further detail (except to say that the inequity was being addressed).

What does this mean? If I retire before age 50, do I lose my PBGC benefit? Are there other practical aspects that I am missing?

I believe I cannot collect any benefits from PBGC before age 50, but can it be denied altogether because I voluntarily leave USAirways before I turn 50?

Thanks,

 

[usairways_vote_NO]

USAIRWAYS PBGC

 

[BoeingBoy]

davescope,

Here's my understanding....

For pilots, 50 is the youngest retirement age so anyone leaving before that age has to resign.

The primary benefits of retirement are pass privilages and access to company medical/dental (though paid entirely by the individual).

Having to resign loses both these benefits.

The age 50 requirement is a holdover from the days when we had a DB pension and company-paid medical/dental post-retirement.

Since these no longer exist, the rational for the age 50 requirement also no longer exists.

As far as PBGC benefits, age at the time an individual begins receiving payments only affects the amount of the benefit (with a possible exception dependant on plan funding level). I believe that an individual had to have enough time with the company to be vested in the DB pension to get a benefit, however.

Jim

 

[av8orwife]

Good Question. I think my husband will be "retiring" soon. (leaving aviation for a more stable industry) However, he is 53. We have decided we do not need to receive the PBGC pension at this time. So it there is no need to notify them. We did contact them and get some quotes...It makes more sense to wait than to take $1,000 a month now.

I think the only benefit to retiring is how they pay out the sick leave bank and for those "free" positive space tickets earned over the holidays. If you quit you have to have already completed the travel vs if you retire. (Our trip is book for the first week in May)

I do not know the current rules, but is use to be you had to be with the airline 25 years to receive travel benefits, but since we only have 19 years in I don't think it is a factor.

My question is how much notice does one have to give USAirways in order to retire. (for pilots) The PBGC has it's own rules, but what are USAirways rules...And do you get paid for vacation time awarded but not taken???

Who do you ask?

The good news is that we are under 1000 times less stress since we have a plan B. We no longer care what the headlines are of if the Company makes it. Financialy and for our future we are better off with out USAirways. I hope the Company does make it for those employees who have no where else to go and who want to stay. I wish them the best.

The whole thing is bitter-sweet. Sad - as it was truly my husbands love to fly, but to stay at U and have no future that starts to make the it just another job. now there is a future. As a family we can actually start making plans.

 

[RedOne]

In a recent code-a-phone or letter the ALPA writer referred to the disadvantage pilots suffer in comparison to other workers due to the fact that prior to age 50, pilots must "resign" and cannot retire.

[post="255112"][/post]​

I know and understand your concern is with pilot group. Since I'm not a pilot, I have no idea. Just as a point of clearification, those in F/S must be age 55 to retire and be "vested". If one leaves before age 55 they resign....or if their station is outsource, they are furloughed. IF they were participitants in a terminated pension plan, that plan will be administered by the PBGC when they reach the age they can start drawing it. Good luck finding out your answers. Call the folk at the PBGC, I found them to be quite pleasant and helpful.

 

[BoeingBoy]

Who do you ask?

[post="255125"][/post]​

Have your husband call the ALPA office in PIT and ask for the retirement specialist. She's usually very busy, so he may have to leave a message and wait for a return call. As an alternative, he can email her with the questions - her email address is in the Airwaves magazine or ALPA pilots-only website.

As for the other things you mentioned....

I think the company likes either 60 or 90 days notice (not sure which), but this is to allow everything to be done by the date of retirement. However, your husband could call the company tomorrow & tell them he's retiring effective immediately if he wanted to. Don't count on getting final pay, DC plan money, etc, immediately, however. That's what the 60/90 days is for.

Non-rev travel after retirement is there regardless of age (assuming retirement and not resignation). The difference is that retirees with less than 25 years pay a fee per segment and are at the bottom of the list to get a seat.

Lastly, you may want to seek some advice on when to start drawing the PBGC benefit. Taking your apparent case where your husband is 53 and the choice is drawing immediately or waiting till 60. How much would you draw in total prior to reaching 60 and how long would the higher benefit received by waiting till 60 take to make it back up.

Jim