From the Negotiating Committee - 8/24/18
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From the Negotiating Committee - 8/24/18

 

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August 24, 2018
During August's MEC Quarterly Meeting, your elected representatives received briefings regarding the retirement project. Consultants from Cheiron, along with David Blitzstein reviewed material previously briefed to FedEx Labor Relations. Jack Parrack, ALPA National R&I Actuary, briefed the funding status and history of the FedEx Pension Plan subsequent to the 2006 Pension Protection Act. Phil Comstock briefed and answered numerous questions from the MEC related to the recently conducted phone and online survey. The internal discussion with the subject matter experts and MEC summarized the effort and work product that has occurred over the past two years.
Following significant roundtable discussions, your MEC tasked the Negotiating Committee to prepare a retirement opener proposal concerning the Variable Benefit Plan. The openers document will be presented to the MEC at the October meeting in anticipation of bargaining with FedEx management.
Information gathered from FOCUS meetings and the surveys, as well as the pilot submitted questions over the past year have highlighted common areas of concern or confusion. To address these items and create guidelines for the Negotiating Committee, the project development team and MEC constructed the following document to set out bright-line standards for bargaining. 
FedEx ALPA MEC Retirement Bargaining Guidelines:
  1. Restructure the DB Plan to eliminate contractual service and compensation caps that are undermining pilot retirement security.
  2. Create an alternative DB Plan structure that will generate increased pension benefits and improve overall income replacement goals in retirement.
  3. Ensure that no one experiences any reduction in benefits based on what they would have received in the legacy DB Plan.
  4. Negotiate protections in the new Variable Plan that help mitigate the impact of investment risk sharing in the future.
  5. Stabilize funding and contribution volatility in the Pilot's-FedEx DB Plan structure that ensures financial security for the pilots and reduces the Plan's overall complexity and economic impact on future collective bargaining efforts.
  6. Provide an option for the Pilots to elect either a fixed or a variable annuity option upon retirement which may assist with inflation protection.
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Captain Pat May
Negotiating Committee Chairman
Pat.May@alpa.org
Captain Jim Plover
Negotiating Committee
Jim.Plover@alpa.org
Captain Mike Weskalnies
Negotiating Committee
Mike.Weskalnies@alpa.org
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