Council 7 Message - 10/18/17
Council 7 Message - 10/18/17


October 18, 2017

Fellow Council 7 Pilots,

We just completed the last of our triannual regularly scheduled MEC meetings for 2017. It was a momentous week, and we covered a lot of ground. On the top of the agenda was the retirement research we have been doing—we will get to that shortly.

Now that the 767 Passover disputes are in, we should be able to calculate and distribute the 5% hold-back payments from the 2015 CBA Lump Sum Payment Distribution letter. We are targeting sometime in the November bid period, but please watch for an update from the FDX MEC secretary-treasurer.

On our retirement research, we were able to focus on one plan referred to as a “Variable Benefit Plan.” By narrowing the focus, we are allowing our team to flesh out details—it goes without saying that there are a lot of details. The education process for retirement will continue. It will be transitioning to explain the Variable Benefit Plan, and we believe when you get the chance in the future to run your numbers in the modeling for the plan you will be impressed. Our actuaries from Cheiron have blown most of us away. These guys are as sharp as they come. In combination with our ALPA staff, both local and national, and David Blitzstein, they have been more than invaluable.

The MEC passed a motion to allow our plan development team, led by our Negotiating Chairman Pat May, to meet with the company to explain the concepts of the plan design at the end of the month. We are not, repeat not, in negotiations. This is just a necessary step to allow the Company to understand the concepts of this plan type as this will be as new to them as it is to us. As we get more information to you explaining the plan details (important to note that you will get details, the company will get concepts), and after the Company has digested the info, if the Company indicates they are interested, we will inform you. Between now and whatever time, it takes the Company to indicate their interest, the education process for the pilot group will be ongoing. I encourage all of you to look at all the information on concerning retirement. It is important to have a complete understanding of what we have in our current retirement system and the associated risks and rewards involved.

Fraternally Submitted,

Don Ray
Block 1 Representative
LEC 7 Chairman

Dave Arrington
Block 4 Representative
LEC 7 Vice Chairman

Don Loepke
Block 8 Representative
LEC 7 Secretary Treasurer


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