Originally Posted by
Pilot7576
FDXLAG,
Are you guys at 9% now? I thought you just got bumped up to 8%? Even so, with the federal limit of $265k, 12% is $31,800 a year and 9% is $23,850 and 8% is $21,200. Even $8k a year over 25 years is $200k and that doesn't count the time value of money and compound interest.
Where are you getting $50k?
No we are at 9% in 2020. Yes we are at 8% now. I use 9% just like I use 4200 when talking about you multiplier for retirement. It is what it will be eventually. The B Fund caps are not tied to the percentage in the contract. Otherwise you could negotiate a 100% B fund and cap it out at 260K. The B fund cap (at least when I talk about it) is the 54K (I think, 56 if over 50) limit on max contributions for 401K and B Plan limits. I am not sure what your contract allows for 401K contributions so I can't answer what your real B fund cap is. I do know that B fund contributions don't stop when you hit 260K of income but when you hit the IRS limit.
I got the 50 K by adding up the difference between 8 and 12% over the first 10 years of employment at our respective companies. It is just a wag probably low. But like I said we will have guys on 3rd year pay making 200+ an hour, that will even out the 8% vs 12% pretty quickly.
Not a pi$$ing contest, Your TA is probably a good one. Best of luck however you vote. Ours contract did not make anyone happy, but it is not as bad as some would let on.