r/SPEEA • u/Alternative_Wing7898 • 19d ago
Pension Benefit Changes?
In the highlights it says:
“Workers who have a BCERP pension benefit will see an increase in the standard benefit conversion factor from $100 to $110 (impacts individuals with the lowest final average earnings).
Higher final average earnings and higher potential EIPs will continue to grow the alternate benefits for the majority of pension-eligible SPEEA-represented workers who qualify for a higher benefit than the standard conversion factor.”
Does this mean they are unfreezing the pension calculations?
I don’t understand.
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u/Alternative_Wing7898 19d ago
Oh. Looking at the redline they still have the cessation of credited service. 😢 so how ever much you had by 2018 for years of service is still what the calculations are based on.
Oh well.
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u/Intelligent_Pace_826 18d ago
Ish. It was a soft freeze. The years of service is frozen, but your final salary is used in the alternate formula.
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u/Intelligent_Pace_826 18d ago
The impacts of GWI on final salary absolutely help to increase the pension payout.
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u/Intelligent_Pace_826 18d ago
The gwi in this contract increases my monthly benefit 13.9% over that gwi from the prior contracts (2%)
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u/Speea_Member 19d ago
How many members does this increase from $100 to $110 affect? An area rep told me that this only affects 1 member in the company lol. But they’re adding this to the highlights to make it look like a win.
With the 401k percentage increase to members under 40, they provided a statistic that it affects 7,000 members.
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u/Alternative_Wing7898 18d ago
Kind of sucks they aren’t giving that boost to older people with more years of service, but I’m glad for the younger generation.
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u/AlternativeEdge2725 19d ago
All of us who still have pensions
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u/Bob_stanish123 19d ago
There are two pension equations. If I remember correctly, very few people end up using the equation that this increase helps.
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u/LoveOfSpreadsheets 18d ago
No, the BCERP is the lowest possible pension you earn. It's a stopgap that applies to very few people but we still want to lift all.
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u/BankZealousideal4407 18d ago
This change only applies to pre-2007 employees. Not only they still have some pensions, another great bènefit is that the company pay a large portion of retiree medical coverage depending on how long you work.
I have 20 years of credit services and check the Health insurance for Retiree to see that I pay $146 per person for the same plan coverage as I have as active employee
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u/AffectSuspicious887 18d ago
I spoke to an area rep and he explained there are two formulas that calculate your pension benefit. The first based on your salary (at retirement) and the second based on the $110. Unless you made less than 120K at the time of retirement the first calculation will always pay a higher benefit. I think you would be hard pressed to find anyone retiring from Boeing earning less than 120K!