Originally Posted by
Rickce7
Another pay issue (I know. . pay isn't the entire contract). . . The current 5% which is PS, as well as monthly input to our 401k. Now that we are getting a 15% direct contribution, where will this 5% go? Will we get it with the rest of the PS at the end of the year? If not, then we haven't really gained anything other than the guarantee from the contract that we will get it rather than Board approval. We will have gained 2% but then lost 5%. Am I seeing something wrong there?
We don't get 5% of PS in our 401k now. Yes, the company rebranded it that way but it's not profit sharing. It's just 5% of your up to 13% (AIP 15-16%) contribution. The 5% PS cliff is simply gone; we don't get it anywhere, including in the AIP. The only thing the AIP does for us in this regard is increase the company contribution 2% (3% in 2021) without the requirement to match funds. That's it, there's nothing else there.