Originally Posted by Wasatch Phantom

Sailing,

I'm really not trying to be obtuse or trolling, etc.

As my financial advisor says "It's the after tax income that's important..."

So in my example of say an L-1011 Captain who made say $275,000 a year in 1999 and he contributed zero to his defined benefit retirement plan. He was taxed on the $275K and netted $275K less federal and state income taxes, social security, and let's not forget ALPA dues. To make the math simple lets say a combined 35%. So he took home $275K less 35% ($96,250) =$178,750. And he had a defined benefit retirement plan that (in theory anyway) paid him a retirement of 60% FAE.

(Ill use myself as an example.) I had my DB plan taken from me and as a deadzoner I am doing my best to fund my retirement to the tune of the maximum allowable individual contribution. For 2012 that is $17,500 plus the $5,000 (over 50) catch up = $22,500.

So for me as an A-320 Captain my hourly rate is $175.00. Let's say $175K for the year. take away the (forced) retirement contribution of $22.5K and your down to $152,500 and lets say a combined tax/benefit rate of 35% ($53,375) and my take home is $99,125.

That's just over half of what the L-1011 Captain netted in my example above. HMMM not too good, is it?

My point is he didn't have to fund his retirement and we now do.