Pension

[altiplano]

Sorry, really dumb question.

Under the DC plan, does the company choose how your pension fund is invested, or do you select an investment advisor? Also, if I'm understanding this correctly, you contribute 6% of your wages up to 140K, the company matches it and when you retire that money is yours?

That's basically what we got in the 2012 government forced contract. In 2017, as mentioned, we achieved CWIPP.

It's a target benefit plan with a guaranteed payout for life. Payout is based on years in the plan and total career earnings. If you have a high earning career, ie. early upgrade it is likely to pay more than a DB plan. If you ride as an RP your whole career, you will have a lower payout.

You have nothing to manage or choose. Just make your contributions - 7.5% and without CRA cap on how much you can tax shelter.

Earliest unreduced pension at 20 years service and 60 years old.

If you leave the company, the money is still yours, you can take a deferred pension, or buyout.

[fish4life]

Sorry, really dumb question.

Under the DC plan, does the company choose how your pension fund is invested, or do you select an investment advisor? Also, if I'm understanding this correctly, you contribute 6% of your wages up to 140K, the company matches it and when you retire that money is yours?

That's basically what we got in the 2012 government forced contract. In 2017, as mentioned, we achieved CWIPP.

It's a target benefit plan with a guaranteed payout for life. Payout is based on years in the plan and total career earnings. If you have a high earning career, ie. early upgrade it is likely to pay more than a DB plan. If you ride as an RP your whole career, you will have a lower payout.

You have nothing to manage or choose. Just make your contributions - 7.5% and without CRA cap on how much you can tax shelter.

Earliest unreduced pension at 20 years service and 60 years old.

If you leave the company, the money is still yours, you can take a deferred pension, or buyout.

You might want to double check but I’m fairly certain it’s not a guaranteed payout for life by any means, you are given a targeted payout but if the market crashes hard your payout is reduced.

[altiplano]

Sorry, really dumb question.

Under the DC plan, does the company choose how your pension fund is invested, or do you select an investment advisor? Also, if I'm understanding this correctly, you contribute 6% of your wages up to 140K, the company matches it and when you retire that money is yours?

That's basically what we got in the 2012 government forced contract. In 2017, as mentioned, we achieved CWIPP.

It's a target benefit plan with a guaranteed payout for life. Payout is based on years in the plan and total career earnings. If you have a high earning career, ie. early upgrade it is likely to pay more than a DB plan. If you ride as an RP your whole career, you will have a lower payout.

You have nothing to manage or choose. Just make your contributions - 7.5% and without CRA cap on how much you can tax shelter.

Earliest unreduced pension at 20 years service and 60 years old.

If you leave the company, the money is still yours, you can take a deferred pension, or buyout.

You might want to double check but I’m fairly certain it’s not a guaranteed payout for life by any means, you are given a targeted payout but if the market crashes hard your payout is reduced.

I perhaps worded it ambiguously.

Guaranteed payout for life in that a payment is coming every month for the rest of your life. You will never run out of money. The payment is within a target range based on fund performance.

The payments to date on the fund have never gone down, but they have gone up. Markets crash, it may go down at some point, but still it will pay within the target range, ie. not go down by much, particularly relative the incident that may have hit the markets.

[wingmonkey]

I hate to be that guy to necro a dead post, but about the DC/TB new pension plan...
In February this year, ACPA had a press release that individuals could have a "buy-in" to transfer registered funds from a list to "purchase prior years of eligible pilot service and pension".
Has anyone done this or can anyone explain what it means or how it works?
Would someone who does this still need to complete 20 years and hit 60 to take an unreduced benefit? What's the actual use or benefit to using this proposed buy-in scheme?
Thanks in advance!

[a220hereicome]

I hate to be that guy to necro a dead post, but about the DC/TB new pension plan...
In February this year, ACPA had a press release that individuals could have a "buy-in" to transfer registered funds from a list to "purchase prior years of eligible pilot service and pension".
Has anyone done this or can anyone explain what it means or how it works?
Would someone who does this still need to complete 20 years and hit 60 to take an unreduced benefit? What's the actual use or benefit to using this proposed buy-in scheme?
Thanks in advance!

There's a set of FAQ put out by the plan on how it works. Lots of eligible groups, but some hoops to jump through to get approval.

Best to check with a committee rep if you have questions. But here goes...

My limited understanding is that some pilots who were hired in their early 40s might be interested in buying back a few years to be able to get the 60/20 criteria that lets you retire without a penalty. You get a quote online, basically take it or leave it with no obligation.

Someone hired really young doesn't really need to buy in, they're going to hit the 60/20 anyway.

And just because you had 5 years at SkyRegional doesn't mean you'll be able to buy in 5 years. The plan at Sky was a 2% match (I think), so unless you invested in Tesla for those 5 years you're probably going to come up short of the amount required for 5 years. CWIPP will give you partial service and credit though based on the transfer balance.

[Montroyal]

Although the new pension plan is better than the garbage DC pension that was literally an embarrassment to the occupation, it ultimately is based on career earnings.

And the problem with that is that you need to make more overall. With 4 years of flat pay and 600 furloughs who got 0 years of service, it's a bit of a dumpster fire.

It's too bad the union wasn't able to negotiate anything for them and it's embarrassing when you look around the industry when the flag carrier is supposed to be the leader

It is particularly embarrassing when you consider the government gave the membership a true opportunity for gains for junior pilots in regards to reserve but couldn't even secure gains. Apparently monthly hours guarantees that were negotiated for everyone else don't apply to flat pay pilots. I guess the junior pilots need to pay their dues after paying their dues.

Pilots will be looking to higher paying positions to improve their pension but at the cost of being junior for their whole career with endless reserve and assumingly a need to commute given the cost of living near the bases. Of course they don't negotiate commuting policies either unlike every other outfit out there

Hopefully there are some competent negotiaters in place for the next round or at least a pathway to a competent union.

[schnitzel2k3]

Although the new pension plan is better than the garbage DC pension that was literally an embarrassment to the occupation, it ultimately is based on career earnings.

And the problem with that is that you need to make more overall. With 4 years of flat pay and 600 furloughs who got 0 years of service, it's a bit of a dumpster fire.

It's too bad the union wasn't able to negotiate anything for them and it's embarrassing when you look around the industry when the flag carrier is supposed to be the leader

It is particularly embarrassing when you consider the government gave the membership a true opportunity for gains for junior pilots in regards to reserve but couldn't even secure gains. Apparently monthly hours guarantees that were negotiated for everyone else don't apply to flat pay pilots. I guess the junior pilots need to pay their dues after paying their dues.

Pilots will be looking to higher paying positions to improve their pension but at the cost of being junior for their whole career with endless reserve and assumingly a need to commute given the cost of living near the bases. Of course they don't negotiate commuting policies either unlike every other outfit out there

Hopefully there are some competent negotiaters in place for the next round or at least a pathway to a competent union.