Trans States
12-28-2014, 03:47 AM
#6361
Gets Weekends Off
Joined APC: Jun 2008
Posts: 2,935
I'll bite. I ran some quick numbers in Excel (being home sick over christmas is awesome .. not!) to compare TSA's 401(k) with Air Wisconsin's. I used several assumptions which are not all 100% accurate but are close enough to illustrate the difference a few percent makes. I assumed the following:
- Two theoretical pilots work at TSA and AW for 35 years each (lifers)
- Pay rates were taken directly from APC, no raises (or concessions) are assumed
- AW's 401(k) is a 1-for-1 match up to 5% plus a 3% defined contribution
- TSA's 401(k) is a 0.5-for-1 match up to 4% after year one and up to 6% after year four.
- Each pilot contributes enough to max out his company match - no more, no less
- The Air Wisconsin pilot upgrades at year four, the TSA pilot upgrades after one year.
- Each pilot credits exactly 75 hours per month for his entire career
- Each pilot sees a 7% annual return
- Contributions and returns are compounded annually for simplicity's sake.
Based on these assumptions, at retirement the TSA pilot's 401(k) account would have a balance of about $887,000. The Air Wisconsin Pilot's 401(k) would have a balance of about $1,387,000. That's a difference of about $500,000 just based on a few percentage points of 401(k) match.
- Two theoretical pilots work at TSA and AW for 35 years each (lifers)
- Pay rates were taken directly from APC, no raises (or concessions) are assumed
- AW's 401(k) is a 1-for-1 match up to 5% plus a 3% defined contribution
- TSA's 401(k) is a 0.5-for-1 match up to 4% after year one and up to 6% after year four.
- Each pilot contributes enough to max out his company match - no more, no less
- The Air Wisconsin pilot upgrades at year four, the TSA pilot upgrades after one year.
- Each pilot credits exactly 75 hours per month for his entire career
- Each pilot sees a 7% annual return
- Contributions and returns are compounded annually for simplicity's sake.
Based on these assumptions, at retirement the TSA pilot's 401(k) account would have a balance of about $887,000. The Air Wisconsin Pilot's 401(k) would have a balance of about $1,387,000. That's a difference of about $500,000 just based on a few percentage points of 401(k) match.
12-28-2014, 04:26 AM
#6362
Gets Weekends Off
Joined APC: Feb 2013
Position: Captain
Posts: 173
Once again....sigh....the APC rates are WRONG. And, why would you let your employer handle your retirement? I manage my own.
12-28-2014, 04:35 AM
#6363
Gets Weekends Off
Joined APC: Feb 2013
Position: Captain
Posts: 173
AW most junior captain 2007? Is that correct? TSA 2007 hires are probably captains if they want to be...
12-28-2014, 05:21 AM
#6364
Gets Weekends Off
Joined APC: Aug 2006
Posts: 511
Most junior CA as of the TSA October seniority list is 01/21/14. Several upgrades have been awarded since and two CQFO classes have already started with the first class completing sim training on Feb 2nd.
12-28-2014, 05:29 AM
#6365
Gets Weekends Off
Joined APC: Jul 2013
Posts: 10,606
I'll bite. I ran some quick numbers in Excel (being home sick over christmas is awesome .. not!) to compare TSA's 401(k) with Air Wisconsin's. I used several assumptions which are not all 100% accurate but are close enough to illustrate the difference a few percent makes. I assumed the following:
- Two theoretical pilots work at TSA and AW for 35 years each (lifers)
- Pay rates were taken directly from APC, no raises (or concessions) are assumed
- AW's 401(k) is a 1-for-1 match up to 5% plus a 3% defined contribution
- TSA's 401(k) is a 0.5-for-1 match up to 4% after year one and up to 6% after year four.
- Each pilot contributes enough to max out his company match - no more, no less
- The Air Wisconsin pilot upgrades at year four, the TSA pilot upgrades after one year.
- Each pilot credits exactly 75 hours per month for his entire career
- Each pilot sees a 7% annual return
- Contributions and returns are compounded annually for simplicity's sake.
Based on these assumptions, at retirement the TSA pilot's 401(k) account would have a balance of about $887,000. The Air Wisconsin Pilot's 401(k) would have a balance of about $1,387,000. That's a difference of about $500,000 just based on a few percentage points of 401(k) match.
- Two theoretical pilots work at TSA and AW for 35 years each (lifers)
- Pay rates were taken directly from APC, no raises (or concessions) are assumed
- AW's 401(k) is a 1-for-1 match up to 5% plus a 3% defined contribution
- TSA's 401(k) is a 0.5-for-1 match up to 4% after year one and up to 6% after year four.
- Each pilot contributes enough to max out his company match - no more, no less
- The Air Wisconsin pilot upgrades at year four, the TSA pilot upgrades after one year.
- Each pilot credits exactly 75 hours per month for his entire career
- Each pilot sees a 7% annual return
- Contributions and returns are compounded annually for simplicity's sake.
Based on these assumptions, at retirement the TSA pilot's 401(k) account would have a balance of about $887,000. The Air Wisconsin Pilot's 401(k) would have a balance of about $1,387,000. That's a difference of about $500,000 just based on a few percentage points of 401(k) match.
12-28-2014, 06:09 AM
#6366
Gets Weekends Off
Joined APC: May 2011
Posts: 382
Also, this has nothing to do with "handling your own retirement." I am simply trying to illustrate the significance of a few percentage points over the course of a career.
For example, if Trans States had a 1-for-1 match instead of a .5-for-1 match, my theoretical Trans States pilot would have an extra $300,000 at retirement.
12-28-2014, 06:20 AM
#6367
Line Holder
Joined APC: Oct 2013
Position: EMB 145
Posts: 27
Not sure why people are giving you flak over your research. It's good to know where our contract falls short so that we can improve it. Especially considering we just started our contract talks.
12-28-2014, 06:41 AM
#6368
Bracing for Fallacies
Joined APC: Jul 2007
Position: In favor of good things, not in favor of bad things
Posts: 3,543
12-28-2014, 06:51 AM
#6369
Gets Weekends Off
Joined APC: Feb 2013
Position: Captain
Posts: 173
Sigh...because some people are claiming that our contract is SO bad that everybody needs to stay away from TSA. It's a regional, they all have their advantages/disadvantages. This contract dispute is getting old...
12-28-2014, 07:42 AM
#6370
Gets Weekends Off
Joined APC: Jan 2014
Posts: 219
Commuting from OKC
What's the commute like from OKC? Everyone goes to IAD initially, right? What base should I try to get to minimize the commute?
If I'm going to live in OKC, would I be better off at Envoy, Mesa, or ExpressJet instead of TSA?
If it matters, I'm prior military with 1800+ TT and 1500+ PIC but only 50 hours multi engine. My goal is to move to a legacy as quickly as possible, and AA would be my first choice, because I want to live in OKC.
If I'm going to live in OKC, would I be better off at Envoy, Mesa, or ExpressJet instead of TSA?
If it matters, I'm prior military with 1800+ TT and 1500+ PIC but only 50 hours multi engine. My goal is to move to a legacy as quickly as possible, and AA would be my first choice, because I want to live in OKC.
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