Viewing page 188 of 200

This transcription has been completed. Contact us with corrections.

And suppose he lasts until the end of 1958. What then? He'd still get the $200 per month.

Does a pilot always get $200 per month when he retires? No, the $200 is  a minimum figure for a pilot who sticks with air line flying until he has to retire or reaches 60 and retires because he wants to. This last, of course, is mostly theoretical. But if a pilot does fly on an air line until he is sixty he could earn a retirement annuity at sixty with, say, 38 or 40 years credit of $380 or $400 per month.

The ALPA plan fixes a rate of annuity for each year of service. That rate is one per cent of your pay plus $1 for each year of service after the plan starts. If, in 1949, you average $500 a month for the 12 months, your basic annuity credit is $6 per month. If you made $800, the base credit is $9. The credit for service before the plan starts is based on full time 1947 monthly pay.

For first pilots whose pay is based on "Decision 83" or a variant of it, the full time pay would be figured by dividing your 1947 pay by your flight hours and multiplying the total by 83 1/3. If you made $7,200 in 1947 and your flight hours were 800, your full time monthly pay would be $750. If you had 5 years as an air line pilot (with one line or more) and 3 years in the army during World War II, your prior service credit would be $8.50 for each year or $68 for 8 years. 

The Annuity credits for each year of service under the ALPA plan and for each of the five Company plans are given in a table at the end of this memorandum.

If every one who retires as a pilot gets $200, what is the use of having annuity credits that never add up to $200.

13