Specifications include, but are not limited to: A. Maintain the Pilot Pension Plan Roster The Pilot Pension Plan Roster includes a listing of Pilot Pension Plan participants, and the effective monthly target pension amount (Monthly Target Amount) and payout percentage for each plan beneficiary. Periodically during the year, a change to the Pilot Pension Plan Roster occurs due to the retirement, disability, divorce, or death of a Pilot. Using data provided by the BOPC, or its designee, for years of service and audited average net income per Pilot, the Contractor shall calculate the plan beneficiary’s Monthly Target Amount, and the payout percentage for each plan beneficiary in accordance with the formulas provided by statute (HNC §1163). The frequency of updates to the Pilot Pension Plan roster will depend on the number of retirements, divorces, and deaths, but on average occurs six (6) times per year. When cost of living adjustments (COLAs) to Monthly Target Amounts are authorized by the BOPC, the Contractor shall recalculate each plan beneficiary’s Monthly Target Amount, and review for accuracy. COLAs occur approximately once every three (3) years (HNC §1167), but could occur more often in years when the cumulative percentage increase in the Consumer Price Index (San Francisco Bay Area) exceeds twelve (12) percent. The last COLA adjustment was in April 2017. B. Update the Quarterly Pilot Pension Surcharge Rate Calculation Each quarter, the Contractor shall calculate the Pension Surcharge Rate in an amount sufficient to fully fund the Pilot Pension Plan for the succeeding quarter taking into consideration the total Monthly Target Amounts to plan beneficiaries and the payment of plan administrative costs (e.g., payroll processing, accounting, legal, and clerical services).
