Originally Posted by
Denny Crane
No, it wouldn’t. DC is not subject to profit sharing. We do not earn profit sharing on the 16% DC. Do you think you get profit sharing on DPSP-CSH listed on your paycheck? (If you reach the 415c limitand get your DC excess in straight pay) The answer is no, you don’t. That’s one reason why it’s listed separately.
That DC contribution on your PS check is the company contribution to your DC based on 16 percent of your PS amount. Again, the company DC contribution is not subject to PS.
Denny
We DO earn retirement on profit sharing. If ALPA lowers the % of DC to fund a DB plan, when profit sharing comes, less will be paid out in DC dollars.
Yes, I realize the semantics of what you are saying: "the company DC contribution is
not subject to PS." In other words, you are correct in that the "16"% integer value does not fluctuate up or down with different PTIX. And you are correct that you don't add up all your DC for the previous year and then get profit sharing from that. Your statement hinges on how you are using the word "subject".
You are skipping over the fact that if the DC % is lowered, the retirement dollars that you make off profit sharing is cut. Profit sharing is pensionable. That is not some insignificant amount of money. It is also money that I did not make directly through wages like other DC dollars, it is compensation from the company's profitability. It is also a clean and unchanged benefit that was fought for with tremendous effort. (ie MIP exclusion)
Let me give an example.
If Profit sharing for a pilot is $10,000; an additional $1,600 would be paid out as DPSP. (16% DC)
If the DC % is dropped to 10%, in the above example only $1,000 would be paid as DPSP. $600/$1600 is -37.5%.
If strat planning thinks the pilot group would let this go unnoticed, they would be making the same mistake from TA1.
(None of this has happened, I'm merely responding to the idea floated from Scoop above. Perhaps ALPA would have some sort of mechanism to compensate for this loss).