MEC Christmas Card
01-08-2019, 08:56 PM
#91
Gets Weekends Off
Joined APC: Jan 2011
Position: A Nobody
Posts: 1,559
No I am not ex-cal. Been with united for a long time and I am comfortable with what I have done with my b plan. That being said I like the idea of the annuity to close the gap from the old a plan and the pbgc that we were left with. I am sure Kirby would like to reduce just about everything. I am not talking about reducing our B plan at all I am talking about the annuity in addition, as opposed to just taking every cent in pay and giving so much of it away in taxes. JMO
No matter what you call it, it’s cash to Kirby and sons.
https://www.irs.gov/retirement-plans...benefit-limits
“Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. Actuarial assumptions and computations are required to figure these contributions.
In general, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of:
100% of the participant's average compensation for his or her highest 3 consecutive calendar years, or
$225,000 for 2019 ($220,000 for 2018)
The dollar amounts are subject to cost-of-living adjustments in future years.”
01-09-2019, 12:42 AM
#92
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
I'm not trying to argue whether RHA is a sound investment or not. We could start another 20 page thread debating that. The point is it should be a choice!! Maybe I'd would rather contribute to a backdoor Roth, or more to my kids' 529, or do lines off a stripper's ass, the point is, it's MY money, it should be MY choice!
VEBA allows some of us like me to contribute much more. By the way, both my wife and I are retired military, but even with Tricare for Life, there are a lot of uncovered medical expenses. That's why I posted the medicare part B payment chart/link (required for Tricare for Life) - that alone's going to eat up a good chunk of your VEBA account if you're married and live 10+ years after retirement.
There's also nursing home costs, which is what really concerns me. My mom spent a few years in nursing homes and that chewed through a lot of assets. The cost of a nursing home is what wipes out most estates. Even with me pumping a bunch of money into VEBA, a few years of either my wife or me in a nursing home will quickly eat into our savings - all of the VEBA will be long gone.
01-09-2019, 04:28 AM
#93
Line Holder
Joined APC: Sep 2014
Posts: 29
No I am not ex-cal. Been with united for a long time and I am comfortable with what I have done with my b plan. That being said I like the idea of the annuity to close the gap from the old a plan and the pbgc that we were left with. I am sure Kirby would like to reduce just about everything. I am not talking about reducing our B plan at all I am talking about the annuity in addition, as opposed to just taking every cent in pay and giving so much of it away in taxes. JMO
01-09-2019, 04:38 AM
#94
Line Holder
Joined APC: Sep 2014
Posts: 29
It's an RHA VEBA. Emphasis on VEBA. There are IRS rules that require all eligible employees to contribute to a VEBA. Hence $1/hr from everyone. Just think of it as part of your ALPA dues if that helps. I read the IRS code on this long ago and found that everyone - in this case, all pilots - have to participate.
VEBA allows some of us like me to contribute much more. By the way, both my wife and I are retired military, but even with Tricare for Life, there are a lot of uncovered medical expenses. That's why I posted the medicare part B payment chart/link (required for Tricare for Life) - that alone's going to eat up a good chunk of your VEBA account if you're married and live 10+ years after retirement.
There's also nursing home costs, which is what really concerns me. My mom spent a few years in nursing homes and that chewed through a lot of assets. The cost of a nursing home is what wipes out most estates. Even with me pumping a bunch of money into VEBA, a few years of either my wife or me in a nursing home will quickly eat into our savings - all of the VEBA will be long gone.
VEBA allows some of us like me to contribute much more. By the way, both my wife and I are retired military, but even with Tricare for Life, there are a lot of uncovered medical expenses. That's why I posted the medicare part B payment chart/link (required for Tricare for Life) - that alone's going to eat up a good chunk of your VEBA account if you're married and live 10+ years after retirement.
There's also nursing home costs, which is what really concerns me. My mom spent a few years in nursing homes and that chewed through a lot of assets. The cost of a nursing home is what wipes out most estates. Even with me pumping a bunch of money into VEBA, a few years of either my wife or me in a nursing home will quickly eat into our savings - all of the VEBA will be long gone.
01-09-2019, 05:38 AM
#96
Gets Weekends Off
Joined APC: May 2015
Position: 777 CA
Posts: 1,039
Andy, I used to be a money manager, I know exactly what it is....it's a trust. What I'm trying to tell you is when I reach my IRS maximums on my B fund I have no choice but to contribute to the VEBA. For those who make over $280k (I don't yet), that's a serious chunk of change that gets put into the VEBA. Why not allow individuals decide how they want their 16% retirement benefit spent instead of forcing that money into the VEBA???
If you’re single you’re losing 35% of that money to Uncle Sam plus additional Medicare as well if it’s paid in cash. That’s with the current rates. It will go higher if AOC gets her way.
01-09-2019, 06:33 AM
#97
Banned
Joined APC: May 2017
Position: CA
Posts: 320
When you are old enough to make over $280k you’ll appreciate the fact that we have that vehicle. It’s the only means available that is 100% tax free for use in retirement.
If you’re single you’re losing 35% of that money to Uncle Sam plus additional Medicare as well if it’s paid in cash. That’s with the current rates. It will go higher if AOC gets her way.
If you’re single you’re losing 35% of that money to Uncle Sam plus additional Medicare as well if it’s paid in cash. That’s with the current rates. It will go higher if AOC gets her way.
01-09-2019, 06:43 AM
#98
Banned
Joined APC: May 2014
Position: Tom’s Whipping boy.
Posts: 1,182
It is currently, to a degree. Don’t know about other carriers, but a UAL captain could have upwards of 75k in the fund now. Problem is, that fund is administered by an joint ALPA/mgt. committee that aren’t professional investment managers. It’s investments are losing money even for those who are already retired.
My reference to the A fund was not to bring it back, it to make those of us whole, or nearly so for what we gave up/lost- however you want to characterize it. The other option is to raise the retirement age again.😱
If a AA rated insurance company goes bankrupt, there is protection from an industry pool. If that fails, SS will be sending plug nickels.
01-09-2019, 06:51 AM
#99
Gets Weekends Off
Joined APC: May 2009
Posts: 1,860
What’s problematic?
Defined benefit plans, while regulated, are in the control of others. So how many BKs, freezes, PBGC grabs do you need to validate that?
The only good plan is one whose control is in your hands and not that of the robber barons of this world.
Since they all cost money, and there are limits to before tax money, I want my funds where the Kirby, Icahn, Ferris, Lorenzo and all those cast in the same cloth have no say what-so ever!!!
Lessons learned from 40+ years of this stuff. But I’m a short timer so have at it you young guys and remember, or examine, what happened when we changed our A Plan assumptions in contract 2000.
The PBGC grab didn’t happen in a vacuum. But, what do I know I’m in the irrelevant minority these days.
Defined benefit plans, while regulated, are in the control of others. So how many BKs, freezes, PBGC grabs do you need to validate that?
The only good plan is one whose control is in your hands and not that of the robber barons of this world.
Since they all cost money, and there are limits to before tax money, I want my funds where the Kirby, Icahn, Ferris, Lorenzo and all those cast in the same cloth have no say what-so ever!!!
Lessons learned from 40+ years of this stuff. But I’m a short timer so have at it you young guys and remember, or examine, what happened when we changed our A Plan assumptions in contract 2000.
The PBGC grab didn’t happen in a vacuum. But, what do I know I’m in the irrelevant minority these days.
01-09-2019, 07:07 AM
#100
Gets Weekends Off
Joined APC: Jan 2017
Posts: 156
The company will drag this out. Why you ask? A recession is coming and its in their interest that they do the deal in a down cycle. It's MBA 101. Expect small raises and work rule changes. We will NOT SEE big raises like the past that put us back to were we should have been. The problem for the union is all the new folks that have no clue what happened after 911 and are drinking the juice. Times are up and down. Its been up for 4 years or so and soon will be down. This will be a good education for those types and they have more and more voting power every year and are the least educated to corporate greed. This means the company will try to sway these folks to 51% vote. The union must educate. These new guys are tired of hearing about lost A funds and that is proof enough to believe times will change as they become the majority.
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