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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, or 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 per 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 the 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.

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