sailingfun

Our PS unlike virtually every DC plan out there is pensionable.

Scoop

I attended the LAX roadshow and also remember the 30-35% number being put out but IIRC it was that low mainly due to inflation but I am not 100% sure - I tend to daydream a lot during these presentations.


Basically for all the guys that have not seen the roadshow here are my takeaways:


Pros:
Great advantages for tax savings for those making over 275K/year.

Safer in BK - not sure if we can know until its tested.



Cons:
Not optional.

Basically trading away DPSP cash today for a non-optional future

program.


This is all in the preliminary stages and I am sure there will be much more forthcoming in the R and I area.



After attending the LAX roadshow I am not for or against this plan as it is still notional, and too many details are as of yet unknown.


Scoop

Denny Crane

So what. Just because we get it on PS and others don't doesn't mean we get "effectively" 2% more DC. It is a negotiated benefit of 16% on PS. Would you still say we "effectively" get 2% more if other companies negotiated and got this in their contracts?

Denny

Planetrain

Denny,

VEBA was proposed $1/flt hr, $1000/yr. No way that would be 3,4,5 hundred thousand at the career end. It might be $100k for the really young guys. You dont think you and your spouse could exhaust $100k in medical bills in retirement? Tax free.

Trip,

In your priority list, I'd much rather have a qualified plan (even a DB) before a non-qualified DC plan.

Hillbilly

My take on that fact would be that our effective rate is 16% and United’s is 14%ish since their profit sharing is not pensionable. Same kind of reduction for the other applicable carriers, but not a plus up on our side. That’s just me though.

sailingfun

Would you be willing to send me your DC money above 16%?

Crown

hey,

I attended a road show. I'm gonna make this quite simple; my mind on retirement has changed a bit, and it hasn't if that makes sense. Here's where I am, a younger newer pilot on property.

- any retirement plan HAS to be in addition to what we have now. The union seems to be trending in this direction, so I'm happy with that.

- any retirement plan that we're going to add should be optional, since it seems the direction they are heading is going to be more for the excess cash that a pilot receives after they max out their 401K contributions. Me personally, I'd like to receive the excess in cash even though it is taxed and make my own decisions with it (pay off a mortgage, help my parents out, visit a classy strip club)

- I do not want to give up a single percent of our 16% DC. In fact, I'd like to see it raised, to 20-25%. This can happen. It would allow guys to reach the max contribution quicker and receive money that they can either contribute to one of these retirement plans or like I said, find a classy strip club

- I would still like to pursue a retirement plan that the company funds over one that we are still funding, but that's just me.

Regardless, retirement is not an automatic NO from me now. This is a job well done by our Union to present a plan that will work for us younger millennials as well as you old A Holes.

Hillbilly

I’ve never gotten any. Neither have you. You would have to count that you got the DC from your profit sharing (which you should), but then pretend like you didn’t get the actual profit sharing money for your math to work. That doesn’t make a lick of sense to me.

$100,000 of earnings with 15% profit sharing would garner you exactly $18,400 in DC contributions which is exactly 16% of $115,000. Now if you take the whole $18,400 but pretend that the profit sharing money has now vanished into thin air like a David Copperfield act, then you would come up with 18.4%. I think that’s being mathematically obtuse. I often agree with the points you make, but this one is wonky.

GogglesPisano

What does that have to do with anything? The company adds 16% to our compensation and puts it in our DPSP. 16%. No fuzzy “new math” is going to convice me that it’s 18% because it’s actually...

... 16%.

GogglesPisano

We don’t get DC money above 16%.