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 weren’t really getting that 5%, it was counted twice but we were obviously only getting it once. We’re gaining 2% and losing nothing (toward retirement), plus we don’t have to put in any of our own money if we don’t want to.
Unfortunately, if I understand correctly, the 5% profit-sharing cliff remains with the AIP, so that 5% just evaporates-it’ll be counted toward profit sharing, but we won’t actually get it (but again, we don’t lose anything compared to current practice). I like the fact that the AIP decouples our retirement from profit-sharing, so they shouldn’t have anything to do with each other going forward (based only on my understanding of the bullet-points)