The two sides differ on the impact of factors such as poor labor-management relations, pension plan nuances and how many controllers are expected to retire at the same time. President Ronald Reagan fired 11,350 air traffic controllers in 1981 after they went on strike. They were replaced over time by 1992, creating a bubble of controllers hired in a relatively brief period. In general, guidelines call for controllers to retire at age 56. But controllers are also eligible to retire at age 50 with 20 years of service or at any age with 25 years of service.
Retirement pay is based on the average of the highest three years of pay.
In recent years, fewer than 300 controllers each year have left due to retirements. Some increases are expected, FAA officials say. But the union projects a dramatic increase in retirements, with the rate escalating until 2007 and peaking at 1,260 controllers retiring in that year. Rates would not decline significantly until 2018. Half the respondents to an association survey indicated that they would retire as soon as they were eligible.