Originally Posted by Davidmon5

I’m confused...are you saying those are the numbers that people will be earning at the top of the pay scale? Or that those are the income levels where you max out a 401K? If it’s the latter, you’re not even close.

the 2021 IRS annual 401K contribution limit for an individual (the portion YOU contribute) is $19,500. The max on all contributions (what both you AND the company contribute) is $58,000.

If you contribute $0, the company can contribute $58,000. If the company insists you pull your weight and max out your $19,500, the max company contribution would be $38,500.

A pilot making $300,000 would hit the IRS 401K limits at either:
- A Direct Contribution of 19.3%
- A DC of 6.3%, plus a matching of 6% (6 from them and six from you
- Matching at a 2-to-1 ratio

A DC of 6% doesn’t come anywhere close. At a DC of 6%, you have to make $967K/year before the IRS caps come into play.


If it was a DC of 6% *on top of the matching we already have*, that’s another story.
2.5% pay increase and a 1% retirement increase may not even keep up with inflation. The Consumer Price Index (CPI) for 2019 was 2.3%, and may be lower in 2020 only because of the crash in oil prices. But with all of the stimulus money that has been printed, I’d honestly rather have annual raises pegged to the CPI over the next few years than the meager 2.5% raise being offered (the CPI would just be flat pay of what we have now by buying power, not even a raise in real terms). Then take the meat of our “raise” in a vastly improved retirement, more in line with the 16% industry standard.
A 1% (eventual 2%) increase is not a “vast improvement” in retirement. While the company has made record money this year running us ragged and sending out daily emails with a dozen OT offerings.
There better be some amazing QOL offerings to make this anything other than a slap in the face, taking advantage that we’re in a disadvantaged bargaining position due to Coronavirus furloughs at the majors.