Originally Posted by
krudawg
You have not come up with any written proof of what you are saying. Show us where you came up with why the ps will be paid on the March 1st earnings because of the cost of cutting an extra check or that the company sent us an email explaining why they are changing it to the First of March because it is their right to do so. You accuse me of putting this on ALPA and you are saying no way it's the MEC's request. Just show us your proof. As I stated over again in other posts, I'd like mine sooner rather than later and I'm betting there are others that want the same things.
No written proof is needed other than the MEC email that you quoted earlier in this thread. You need to REREAD that email. You'll find that it's no more than an explanation of what the company envisioned from those that mistakenly try to put 100% in the PRAP will likely eat up their monthly pay to cover the required deduction. If you can't understand that maybe you should ask a F/O to explain it or draw you a picture. I know several have tried to explain it to you on this thread.
Originally Posted by
krudawg
Ok, here's a cut and paste of the MEC's letter:
Profit Sharing 401k Elections
In prior years, profit sharing payments were made by a separate check rather than being included in the regular paycheck. That meant that pilots who elected 100% of their profit sharing payment to go into the 401k did not actually see all of their profit sharing payment go into the PRAP. This was because amounts contributed to the PRAP under 401k elections, though not subject to income tax, are subject to FICA tax. The company had to hold back enough of the profit sharing payment to cover the FICA tax on the 401(k) contribution, and the amount held back to cover FICA withholding was itself subject to Federal, State, and local income taxes, so the hold back had to be increased to cover those taxes as well.
This year, profit sharing will be included in your regular 3/1/2016 paycheck. As a result, if you elect 100% of your profit sharing payment to go into the PRAP, you will actually get 100% of your profit sharing payment into the PRAP. But you will still owe the FICA taxes on that contribution so, instead of being held out of the profit sharing payment as in the past, those taxes will come out of your regular pay. In other words, if you elect 100% of your profit sharing payment to go to the PRAP this year, your regular March 1 take-home pay will be reduced.
To avoid decreasing your 3/1/2016 take home pay, the company is recommending that pilots elect no more than 65% of their profit sharing payment go into the PRAP.