Originally Posted by
tunes
Denny, while I agree that it could be a benefit...at the end of the day it's still your money that's contributing right? It's not company money. It's nice in the aspect of it forces you to "save" and saves on some taxes and dues but it's still your money just going from one hand to the other. I'd much rather see something company funded.
Sent from my iPhone using Tapatalk
Yes, it is your excess DC funds going into a qualified plan.
There are two ways to look at how it gets funded. We could negotiate to fund this type of plan by a separate company contribution. I don't think that is the way to do it. The backdoor way to fund this program is thru an increased DC contribution above 16%. This works for both younger/newer and older pilots.
For our retirement funding, the first thing that needs to be fully funded is the 401k. Right now well over 9000 pilots reach that goal and get DPSP CSH. The goal is to get everyone to fill that up and more. If you have a plan like this, an increase in DC helps EVERY pilot save more for retirement.
Denny