With the first one, management proposes that if the pilots do not prevent management from terminating the pilots’ A-Plan, and the Court ultimately allows it to be terminated, then and only then will management pay the pilots the money they propose.
Under this scenario, management proposes to eliminate both the current A-Plan and the current B-Plan and replace it with a 13.5% 401(k) contribution. If the pilots agree to management’s proposal prior to the actual A-Plan being terminated then the Company will not pay this 13.5% directly to the pilots as is done today under the B-Plan, but instead they will escrow the 13.5% contribution and will not transfer the assets to the pilots until the A-Plan is terminated. If the A-Plan is not terminated, the pilots would not receive this escrow amount.
To receive this first pension “enhancement,” the pilots must agree to change their 11% B-Plan to an 11% 401(k) contribution. If they allow their A-Plan to be terminated, management will provide the pilots with an additional 2.5% 401(k) contribution. For these major changes to the pilots’ A and B Plans, management will agree to pay the pilots what they agreed to pay them from the escrowed account.
Management's fourth enhancement:
Amend the agreement to provide that the Company will offer a replacement benefit through the SuperSaver 401(k) Plan with a thirteen and one-half (13.5%) percent Company contribution. Company contribution will be escrowed and is contingent upon court approval of DB plan termination. Otherwise, funds will revert to Company.*
So, if the pilots agree to eliminate their B-Plan and allow the termination of their A-Plan, management will provide the pilots the enhancement of paying them what management has proposed under their proposal which is significantly less than what pilots currently receive under their A and B Plans.
This is an enhancement? In what universe?
Under this scenario, management proposes to eliminate both the current A-Plan and the current B-Plan and replace it with a 13.5% 401(k) contribution. If the pilots agree to management’s proposal prior to the actual A-Plan being terminated then the Company will not pay this 13.5% directly to the pilots as is done today under the B-Plan, but instead they will escrow the 13.5% contribution and will not transfer the assets to the pilots until the A-Plan is terminated. If the A-Plan is not terminated, the pilots would not receive this escrow amount.
To receive this first pension “enhancement,” the pilots must agree to change their 11% B-Plan to an 11% 401(k) contribution. If they allow their A-Plan to be terminated, management will provide the pilots with an additional 2.5% 401(k) contribution. For these major changes to the pilots’ A and B Plans, management will agree to pay the pilots what they agreed to pay them from the escrowed account.
Management's fourth enhancement:
Amend the agreement to provide that the Company will offer a replacement benefit through the SuperSaver 401(k) Plan with a thirteen and one-half (13.5%) percent Company contribution. Company contribution will be escrowed and is contingent upon court approval of DB plan termination. Otherwise, funds will revert to Company.*
So, if the pilots agree to eliminate their B-Plan and allow the termination of their A-Plan, management will provide the pilots the enhancement of paying them what management has proposed under their proposal which is significantly less than what pilots currently receive under their A and B Plans.
This is an enhancement? In what universe?
