Originally Posted by
pony172
Merely an interested UPS observer here guys. Our B Plan contributions are 12% but the IRS limits that to $34,200 for 2020. That means at $285,000 you hit the max contribution. A lot of our FO's will hit this number this year and for Cpt's the contribution will be mostly in the 7-9% range. I like your cash over cap ideas like Delta.
Also, our pension numbers went up in our contract extension ratified in March. $4400 per year of service up to 30 years for a Cpt. We also gained a VEBA plan that puts $1 for every credit hour into a tax free account for health care costs that you can use starting at age 60. That seems to be the best way to gain some extra tax free cash that will be useable in retirement. I know our EB talks with your MEC frequently on a variety of issues. We're watching this with interest.
All good info. We currently have an HSA plan that the company puts 4k in annually and then you are allowed another 2,500ish pre tax contributions and a wellness benefit. So total of 7,200ish annually. The number you can put in annually goes up per IRS regulations. So having another account that can only be used for health care wouldn't be a huge advantage for many since we already have an account to do this in my opinion. I would be more interested in just doing cash over cap and having a C plan that way the money is not pigeon holed into only being used for healthcare.
We also have a disability sick account that has spill over once its full. Many outsiders don't know about this. You accrue 72 hours of sick time annually and it maxes out at 686 hours. It takes about 9 years to fill it up then 72 hours of pay every year after that is paid to you and you can front load you 401k with it. A WB Capt is getting 23,400k annually spillover from this. Then at the end of said pilots career they get paid 50% of its value paid in cash. At current rates thats 111,400k. So think if you have 30 years at purple and you fill it up the first 9 years you will on average get an additional 25k annually for the last 20 years plus the 110,000k plus at retirement. Do you guys have this at Brown?