Brown 727's on the chopping block
01-27-2007, 08:26 AM
#51
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Joined APC: Aug 2006
Position: leaning to the left
Posts: 4,184
You could be investing in a Harley, or something. And then, try to get the FAA to change the age to 70, when you get up there. Because, you won't have anything in those "stupid accounts" to retire on
Typical pilot financial mentality.
01-27-2007, 08:37 AM
#52
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Joined APC: Dec 2005
Position: FO, looking left
Posts: 1,060
Yes, but preventing the change itself is still (theoretically) in your control (which means OUR control).
The big thing for you UPS guys (and any American, FedEx or other guys with a B-Fund) is that if the retirement age goes to 65 you can kiss your B-fund good-bye.
I would expect the IRS to freeze B-fund contributions as soon as the new rule goes into effect. So the old guy getting a 5-year extension gets no penalty, but the 32-year-old new hire gets (depending on the company) over $1 million taken away from him with the "promise" being able to work 5 more years. Wow - what a ****ty deal.
This is the crux of the problem - even worse than reinstatements. If the B-funds go away because of this, it will be the biggest theft of income from one group to another in the history of the industry.
The old guys will get the benefit of their B-fund for their entire career, and then watch as it is eliminated for the young guys. Can you make up 25 years of B-fund contributions and growth with an additional 5 years (maybe) in your highest seat? I don't think so, and I'm mad as hell because of it.
Unless there is a specific provision to allow B-Funds to continue, every pilot under 50 should be opposed to this change.
The big thing for you UPS guys (and any American, FedEx or other guys with a B-Fund) is that if the retirement age goes to 65 you can kiss your B-fund good-bye.
I would expect the IRS to freeze B-fund contributions as soon as the new rule goes into effect. So the old guy getting a 5-year extension gets no penalty, but the 32-year-old new hire gets (depending on the company) over $1 million taken away from him with the "promise" being able to work 5 more years. Wow - what a ****ty deal.
This is the crux of the problem - even worse than reinstatements. If the B-funds go away because of this, it will be the biggest theft of income from one group to another in the history of the industry.
The old guys will get the benefit of their B-fund for their entire career, and then watch as it is eliminated for the young guys. Can you make up 25 years of B-fund contributions and growth with an additional 5 years (maybe) in your highest seat? I don't think so, and I'm mad as hell because of it.
Unless there is a specific provision to allow B-Funds to continue, every pilot under 50 should be opposed to this change.
WE DON'T WANT TO WORK LONGER FOR THE SAME AMOUNT OF INCOME!!
01-27-2007, 09:00 AM
#53
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
Ahhh yes. Those stupid accounts that build tax deferred. Gosh, how I hate those.
You could be investing in a Harley, or something. And then, try to get the FAA to change the age to 70, when you get up there. Because, you won't have anything in those "stupid accounts" to retire on
Typical pilot financial mentality.
You could be investing in a Harley, or something. And then, try to get the FAA to change the age to 70, when you get up there. Because, you won't have anything in those "stupid accounts" to retire on
Typical pilot financial mentality.
No, I like the B Fund, however if it is taxed now you would be stupid to put it into an account where you can't touch it. Therefore it would be a stupid account. At least that is what my accounting 101 professor said. Would I find some other way to invest it? My choice. Thanks for looking out for me those are some good options.
Last edited by FDXLAG; 01-27-2007 at 09:05 AM.
01-27-2007, 09:13 AM
#54
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Joined APC: Aug 2006
Position: leaning to the left
Posts: 4,184
I rest my case
Last edited by Busboy; 01-27-2007 at 09:23 AM.
01-27-2007, 09:43 AM
#55
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Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
So Busboy how much of your paycheck do you put into a retirement account that grows tax deferred?* Anything less than 100% is stupid by your logic. I rest my case.
Because my point is if the IRS changes the rules on B Funds that 6-7% would be treated just like income. It is not going to disappear; unless the MEC negotiates it into a fund to help left handed pilots born on Tuesdays between 1947 and 1949.
Do you think the IRS is going to eliminate B-Funds but increase the amount of money you can put into 401K,IRA, etc?
*trust me I do not give a rats a$$.
Last edited by FDXLAG; 01-27-2007 at 09:49 AM.
01-27-2007, 10:57 AM
#57
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Joined APC: Aug 2006
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Posts: 4,184
I think this is what you meant to say. "*Trust me, I do not give a rat's a$$ about anyone, other than me.
Have a nice day.
You may have the last word.
01-27-2007, 12:38 PM
#59
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Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
So Busboy how much of your paycheck do you put into a retirement account that grows tax deferred?* Anything less than 100% is stupid by your logic. I rest my case.
More than you, I'm sure. I'm actually trying to put enough away, so that if the sheet hits the fan, here at FDX..I don't have to grovel and whine my way into another 5 years of work, at the expense of everyone younger than me.
You make a big assumption about me working past 60. I just think using the argument that B Funds will go away the day after they change the rule is bogus. I already know I wont be groveling.
Because my point is if the IRS changes the rules on B Funds that 6-7% would be treated just like income. (I should have said worst case).
How can you be so sure? Can we just tell them you said so?
Can you give me a better explanation of what will happen to the 7% contributions mandated by the contract?
It is not going to disappear; unless the MEC negotiates it into a fund to help left handed pilots born on Tuesdays between 1947 and 1949.
Huh? Waa-Waa
No whining on my part you must still be talking about your groveling paragraph.
Do you think the IRS is going to eliminate B-Funds but increase the amount of money you can put into 401K,IRA, etc?
No. However the "B" plan contributions are part of the Sec 415(c) limits. So, you would certainly have the ability to try and make up the difference.
So if they illuminated the B Fund tomorrow we both agree there would be no problems.
*trust me I do not give a rats a$$.
I think this is what you meant to say. "*Trust me, I do not give a rat's a$$ about anyone, other than me.
No what I meant to say I said. But, I am impressed with your compassion, especially towards the older pilots who have lost their retirements.
Have a nice day.
You too.
You may have the last word.
Or you can.
More than you, I'm sure. I'm actually trying to put enough away, so that if the sheet hits the fan, here at FDX..I don't have to grovel and whine my way into another 5 years of work, at the expense of everyone younger than me.
You make a big assumption about me working past 60. I just think using the argument that B Funds will go away the day after they change the rule is bogus. I already know I wont be groveling.
Because my point is if the IRS changes the rules on B Funds that 6-7% would be treated just like income. (I should have said worst case).
How can you be so sure? Can we just tell them you said so?
Can you give me a better explanation of what will happen to the 7% contributions mandated by the contract?
It is not going to disappear; unless the MEC negotiates it into a fund to help left handed pilots born on Tuesdays between 1947 and 1949.
Huh? Waa-Waa
No whining on my part you must still be talking about your groveling paragraph.
Do you think the IRS is going to eliminate B-Funds but increase the amount of money you can put into 401K,IRA, etc?
No. However the "B" plan contributions are part of the Sec 415(c) limits. So, you would certainly have the ability to try and make up the difference.
So if they illuminated the B Fund tomorrow we both agree there would be no problems.
*trust me I do not give a rats a$$.
I think this is what you meant to say. "*Trust me, I do not give a rat's a$$ about anyone, other than me.
No what I meant to say I said. But, I am impressed with your compassion, especially towards the older pilots who have lost their retirements.
Have a nice day.
You too.
You may have the last word.
Or you can.
Last edited by FDXLAG; 01-27-2007 at 01:25 PM.
01-27-2007, 01:04 PM
#60
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
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