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Old 08-29-2020 | 08:26 PM
  #148  
NotMrNiceGuy
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Joined: Oct 2015
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Originally Posted by DLax85
Long time, no see...

With that said, I propose...

Keep current A Fund structure (High 5 FAE, 25 years at 2%) with 2 changes:

Index current $260K cap to the 401(a)(17) limit.
(Currently $285K)

This limit is adjusted annually by Federal Govt using an inflation index similar to that used by Social Security and Military Retiremets. Not huge, but not zero and wouldn’t require renegotiation

Additionally, allow 1% increase for YOS between 26-30 years

So 30 year career pays (25 x 2% + 5 x 1%) = 55% of High 5 FAE

(Note: This alone is a 10% increase for guys who want to work longer),

And increase B fund from 9% to 12% over the life of the next contract

(Note: Our B fund has grown from 5% to 9% over the past 14 years)

And finally, Increase/remove B Fund limit paying out “Cash over Cap”

In this plan, there are reasonable increases for all pilots - immediately and in the future

In Unity,
DLax
I don’t think you’ll find any disagreement with your proposal on this board. I think it would be ideal.

One thing I’ll mention in regards to indexing to the IRS Limit is that is not guaranteed to always index up. As part of the Omnibus Bill in 1993, it was actually indexed down from $235,000 to $150,000. This regulation would not affect the VBP.

Max Compensation Limit


Variable Benefit Plan March 2018
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