mesteve

Per FJ's marketing material "Flexjet offers annual retirement benefits up to 18% of earnings, in 401(k) match and direct contribution.", but also says they only match up to 6% into your 401k...

Can anyone decode marketing-speech for real words?

cheers

CFITlikely

It's a misleading statement. They match up to %6 but they give something called deferred compensation after 3 years which last I saw was up to 18k and can be put into your 401k but it goes against your personal contributions. It's basically just a bonus up to 18k that they'll eventually pay out and you can choose what to do with it.

In short, it's a %6 match.

Local

Think of the deferred comp as a retention bonus. $4,500 per quarter ($18k annually) that pays out after your initial 3 years. At that point you can put it in your 401k tax free or take it as a bonus minus taxes. Continues at $4,500/qtr thereafter.

CFITlikely

That's a good way of putting it. They market it as a retirment benefit because they know that's an area that's been lacking and continues to lag behind the industry. As many pointed out in another thread where it was discussed at length, it doesn't really address the retirment issue for a number of reasons (one I stated earlier).

*And the %6 match is on a 4 year vesting schedule

followingdreams

Either way you look at it, FJ gives you a 6% match, in addition to that you will qualify for an $18k bonus each year that pays out in 3 yrs, assuming you are still at the company. The $18k can be put into your 401k if you choose or paid out in cash. I believe this was done because NJ forces 1/3rd of the FDP to be a contribution to retirement and FJ is selling it as giving the employeee flexibility. The way I look at it, if a first year FO can not put away significant money into their own retirement making close to 200k per year and going up from there, its a them problem. Its not an airline retirement, but you should be able to live comfortably with how much you are making at Flex.

MilSmooth

Is the 4 year vesting written anywhere? The packet I recieved says there will be an automatic 3% salary deferral and up to 6% matching. It also says I am 100% vested in my contributions, which makes sense, but doesn't give a vesting schedule for employer contributions.

TexasLonghorn

I don't believe it is written anywhere, like a majority of Flexjet policies. But it's very real, as I found out when I left.

galaxy flyer

I guarantee it's written somewhere, that's a Federal ERISA requirement. It was five years vesting when Bombardier, every years after the first 20% was yours.

flyitfast

you do not qualify for an 18K bonus UNTIL AFTER 3 YEARS! And then it's either 18K against your personal max or it's a taxable bonus. At Netjets, you'll get 60+% match. Flex ain't even close.

followingdreams

Actually, you QUALIFY for the bonus after year 1, it is paid out in year 3 (if you are still with the company), So you are paid in arrears and there is a metrix for if you "retire" you will get paid out the two years that you have earned. I believe the retirement is at least 65yrs old and at least 10 years with the company.

Regarding not even being close, on that one issue maybe not close, but in the big picture, first year pay is close to $160K (before bonuses), +10,15,20% bonus depending on your position, +$4,000 fuel bonus, +$18k bonus, +6% match 401k, + Flex pays for parking at domicile ($3,200 extra for me), + all meals go on company credit card so you keep the $42/day per diem ($8,700 bonus ), so maybe on one issue is not "better than" but as a whole Flex pilots arent doing so badly. Keeping in mind, the max 401 contribution is $23,000, if NJ give a 60% match its a $13,800 match, using $170k for a flex pilot (pretty conservative 1st year figure), it would be a $10,200 match so we are only talking about $3,600 difference. I think the other points above (i.e. just the parking) makes up for that.