Originally Posted by
1234
I did not work under C2K as I was at NWA. I have to say that this contract puts the pay rates above the NWA pre bk rates (restoration?). With C2K, how much was put in your 401K account by the company, which is your money not matter what the company decides to do?
During C2K we had 2 DC plans. The first was a MPPP that was held by the company and invested in our names. The contribution was 5% of pay and it offset the earned benefit of the DB plan upon retirement, non-qualified monies first, then qualified money. It was only in existance from 1996-2004 when it was hard frozen, then it was terminated an distributed to pilots as part of our bankruptcy agreement.
Editorial, had this plan been in existance at the start of the DB, or had there been no lump sum provision in our DB we'd probably be participating in an ongoing plan rather than a terminated one...
The second DC plan was our 401K. C2K increased the company contribution from 2% to 3% of eligible salary, but the first (approximate, as it varied by member) $1500 was in company ESOP stock. That stock was valued at $72 per share and just before bankruptcy was converted to common at about 1.7-1. It was sold by the trustee for next to nothing, so all those company contributions were wiped out.