Originally Posted by
Richard Head
All-
I know that our union has provided us with ample smoke to help break down how our MBCBP would work. I have been reading about these plans in an effort to keep an open mind and educate myself. The IRS document below provides a GREAT explanation starting on page 9 of how a real life example would work for a 35 year old participant.
They do a better job here than any ALPA email I’ve read yet on the topic!
https://www.irs.gov/pub/irs-tege/epchd1104.pdf
Thanks for posting. I lost interest on p.4 with "hypothetical accounts" and PBGC, but kept reading.
The example used end of year contributions vs per pay period contributions. Under that example, we are losing an average of 6 months earnings on every annual contribution. I don't know if the DALPA plan used EOY or pay period credits to each Hypothetical Account.
There was some language in the section on uniformity requirements that would seem to eliminate any Plus Up or Min Balance provision, as it would not be a consistent allocation for all participants.
The Cooper V IBM example seems to make a further case against a Plus Up or Min Balance.
Thanks for taking time to look this up and post a link.