Originally Posted by
ClncClarence
I feel like some are overlooking that we still get the 9% DC to the PRSP in addition to the 11% MBCBP. In reality the combined company/pilot limit (in 2023) is $66k (PRSP) plus $36,300 (MBCBP). The two limits are based on the same income restrictions, but they fill up independently. Total tax-advantaged savings is up to $102,300 between company and pilot.
Based on this, the most money (from 2023 limits) one could get from the company is $66,000. You can fill up the rest of the space with your own $22,500 tradtional/Roth contribution limit plus any after-tax contributions that could then be converted to Roth. That’s where the $102,300 annual tax-advantaged number comes from.
I’m voting no regardless but the email sent out by the NC this evening does clarify how this works.
It’s a defined benefit plan but only guarantees you that all the company contributions will be in your account when you retire, no guarantee on returns. It targets a 6.5% return using a mix of stocks and bonds.
If you’re making over the IRS limit, you’ll never actually get 20% contributed because you’ll cap out. Rough math says contributions will be around 16-17% in those cases. It is not a replacement for a pension. And it’s not better than a 401k because you have no control over the investments and the money is held in a trust. Like everything in this TA, it’s a giant let down.