Boeing Engineers Reject New Pay Deal; Legacy Pension Calculations May Still Benefit from Salary Increases
Boeing engineers rejected a proposed four-year labor contract in August, with pay at the center of negotiations ahead of their current agreement's October expiration. The union SPEEA voted against the offer by a margin of 64%, authorizing potential strike action if talks fail. For older workers with legacy pensions, however, higher salaries could still influence pension calculations despite Boeing freezing credited service in late 2018. Boeing’s frozen pension plan allows final average earnings to continue growing based on the highest annual compensation over a rolling five-year period within an employee's last decade of work. This means even with no additional years added, salary increases can still impact future pension benefits for some retirees. The rejected pay deal included wage pools ranging from 5% to 7%, which could affect these calculations. Separately, the article highlights how delaying Social Security claims until age 70 significantly boosts monthly payments—by over $1,500 in one example—for those born after 1960. This adds another layer of financial planning for older Boeing workers.
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Topics: Boeing employee_compensation pensions Social Security