Originally Posted by
kronan
Originally Posted by
TonyC
Originally Posted by
kronan
What happens to our B plan if the IRS DC limit is lowered? Oh wait, we've already got protective language in our CBA should that happen. (Think it also protects us if the DB limit is ever lowered as well)
CBA Section 28 RETIREMENT (PENSION BENEFITS)
Paragraph E. Federal Express Corporation Pilot Non-Qualified Plans
2. In the event the compensation limit of Code § 401(a)(17) and/or the
annual addition limit of Code § 415(c) is decreased legislatively, the
Federal Express Corporation PRSP Non-Qualified Plan for Pilots
(“PRSP Non-Qualified Plan”) shall be established.
§ 401(a)(17) of the IRS code refers to the annual compensation limit for DEFINED CONTRIBUTION plans
§ 415(c) of the IRS code refers to the
Limitation for DEFINED CONTRIBUTION plans
So, No, we don't have a CBA provision to establish a non-qualified plan in the event the IRS lowers the DEFINED BENEFIT limit. If you could stick to the facts instead of what you "think" it is, it might be less confusing.
So, here you’re quoting the CBA to show that we already have protective language should the DC limit be lowered. Doesn’t that mean it would be realistic to assume that similar protective language would be added to protect a PSPP style plan if we tied the compensation to the DC limit.
First of all, there is no IF when it comes to the Defined Contribution Compensation limit. It's the law.
Second, it would be realistic to want similar protective language, but there is no guarantee that we would get it. It would be -- once again -- negotiable.
Originally Posted by
kronan
And, you elected to bypass Paragraph 1 which discusses the Non-Qualified Pension Plan for pilots. Only downside is that plan limits our protection to the FAE max of $260k. Which I assume would also be negotiated upwards if our Traditional A plan is improved.
Here's why I "bypassed Paragraph 1. It talks about 2 non-qualified plans that would be provided in the event the Compensation Limit or the Contribution Limit, both which apply to our Defined Contribution ("B") Plan, are lowered. Sentence #1 says, "The terms and conditions of [the plans] shall be as provided in [the plans]." The "Non-qualified Pension Plan for Pilots" is the "Compensation Limit Plan". The last sentence of that paragraph just reminds us that the combination of those non-qualified plans and our "A" Fund Defined Benefit Plan cannot exceed $260,000 Final Average Earnings. There is no suggestion of any protection for our "A" Fund should the IRS Defined Benefit limit be reduced.
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