Retirement Plan

I am currently a police officer in the state of Ohio and I am enrolled in the Ohio Police & Fire retirement system. I was wondering which retirement system, if any, that airlines use? I was also wondering if anyone knows if my time with the police department, approximately 11 years, can be bought for contribute to another retirement system or if I may have to look at cashing it out. I know this may be a difficult question to answer but if anyone knows I would appreciate the help.

Some airlines still have a A fund, which is your typical pension plan. I’m pretty sure UPS and Fedex has one. Most major airlines now have done away with the A fund or have it frozen. The B fund or a 401k savings is common place.

Usually you have to stay for the show even if you have tickets. Which means if you leave, the pension leaves with you.

Jesse,

The days of pilot pensions are gone. While some airlines still have plans for very senior pilots who’ve been grandfathered in, the VAST majority have simply gone to 401Ks. While FedEx and UPS still offer a DB plan, most everyone agrees those won’t survive the next contracts.

As I said you should count on a 401K and depending on what you have now you may or may not be able to roll that into the new one. That’s why there are accountants! :wink:

Adam

Jesse,

You might have some issues rolling your money into a corporate 401k as your money is either a true pension or part of some government type program. You would need to talk with an investment advisor to be sure though.

Chris

Although I agree the days of pilot pensions are gone for the majority. Things do constantly change, but to say most everyone agrees those won’t survive the next contracts is subjective and purely speculative.

Arthun,

As someone who’s a newly elected Union Officer and has had conversations with people actually involved in the negotiating process (at one of those carriers) it’s not as “subjective and speculative” as you might think.

Adam

Maybe we should wait until Jimmy Hoffa comes back to lead the Teamsters :wink:

Time will tell, so anything can happen.

Arthun,

You’re right and anything can happen but here’s my problem. Jesse, who started this thread, is asking about retirement plans so he can work out the numbers of a possible future career. Since we agree the majority of airlines are only offering 401Ks, chances are, that’s what Jesse’s going to end up with and what he should use when he weighs his options. Now will Jesse want to fly for FedEx/UPS AND will he get hired 10yrs from now when he’s ready AND will they be able to hold on to their pensions through 2-3 more negotiations (and a judges gavel if they suffer any financial issues) and will they even try to do so for newhires vs every other industry standard contract? Maybe? But does that really help Jesse with his question or plan his future?

Adam

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It should also be pointed out that the vast majority of pilots, at least the ones I know, have zero interest in obtaining a pension again. People would rather have their money in their accounts where it can’t be touched by the company and the next bankruptcy happy presidential administration to come along.

Thanks for the help guys. I was concerned due to the government pension and I doubt it will be able to be rolled over or time bought but I figured I would ask.

Jesse

Jesse

Although I am not part of ATP but going through training using private instructors, I have been hanging around these forums for the information.

I am in law enforcement on the west coast with about 7-9 years until retirement (I’ll be 43-45 then) and looking to make the transition to flying commercially.

What I can tell you is that your retirement, particularly if it is a state retirement is not transferable. If you make contributions, you can take those with you when you leave and roll them into a private program (TD, MassMutual) but typically can not roll into another program especially if they match.

I have thought about this as well and adjusted my plan to keep building time, training, and experience before retiring with my pension and making the transition.

Shoot me a message if you have any other questions.

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I was a full time police officer for ten years in Texas when I left and went to ATP. I still do police work on the side as a part time officer but the retirement system is different than what I had full time.

The full time retirement was Texas Municipal Retirement System (TMRS) which is like a 401K but controlled by a 3rd Party not myself or the PD. For every $1 I contributed the city contributed 2 for 1 into a separate account. I can/could pull my money at anytime and transfer to a new retirement account but if I do I won’t get the city’s contributions. I left my money in place to just compound interest along with the city’s until I’m ready to retire. I’m in my mid thirties now and when I’m able to start withdrawals in my 50s the combined accounts will be over half a million.

Call your retirement program and ask for references for CPAs in your area familiar with the program. I did and met with several of them who all gave the same advice helping make my decision.

Hope that helps

This question is for Jesse, James, and Arthur. I am full time firefighter up north in Rhode Island. 8 years in, and I become vested at 10 years where I can receive 25% pension but no benefits besides that. Arthur specifically, did you become vested at 10 years and then decide to pursue flying as your career? Or did you just simply make the jump and roll your pension contributions into an investment account elsewhere.

Hey Jesse,
I’m also in the OP&F, although I am already past my 25. I believe you have to have 15yrs in the program to be vested. I know the people at OP&F are very helpful and should be able to answer your questions about how ‘portable’ your contributions are…it is a defined benefit program which is much different than a 401k. I would encourage you to give them a call. It sounds like you already have your answer as to what type of retirement commercial flying has to offer so you just need to find out how accessible your past contributions are to you now. I hope you are able to successfully transition to a new career as a pilot!

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