As many of you know by now, the company unilaterally made the decision to continue paying L-CAL pilots on December 31, 2013 rather than on January 2, 2014. This infraction to the contractual provision posted above was not discovered until the company posted the L-CAL payroll data on CCS and pilots reported them through the PDR system. This presents a myriad of issues and most of them cannot be reversed.

The 16% contribution to the B-Plan will be made for the 2013 year unless you’ve already reached the 415c limit or have surpassed the 401(a)(17) limit. If you have reached those limits, the 16% will be spilled over into your RHA VEBA. Recall ALPA engaged the company during May 2013 and asked for relief on the 401(a)(17) limits as it pertains to spillage into the RHA VEBA. The company has never responded to our numerous promptings.

Pilots' income in 2013 is already inflated due to the lump sum payments and this adds to the income and increased taxes. It also may trigger the Medicare surcharge.

Under the company’s plan, profit sharing amounts may have an overall impact on all pilots.

Then finally the dues for ALPA are reduced beginning 2014, yet the dues for the L-CAL pilots will be calculated at the higher rate. We will address this issue with ALPA National.

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Just the tax implications of this are going to be a mess. Since the company paid you in 2013 its income earned in 2013. This also means in 2014 you will have one less pay check, so if you are removing a portion towards your 401k you have to take more out.

Plus now ALL of our profit sharing is going to be less (even the LCAL pilots) because the expense being in 2013 means less profit.