Originally Posted by
JohnnyBekkestad
you are wrong, the current is 10% matching +2% DC to 22k and the new proposal is 12% DC to 66k.
you are right though that it really doesn’t affect people that make under 225k.
there are other people, other than aussies, that just want to be able to go to work. That live In other places like Europe and Asia. This would help them in the same manner it would help you. However the international gateway has to be under 1250$ an American based pilot has no limit to the gateway price
Maybe my math is off? A 100k income with a 10% contribution has a pilot pay in 10k, the company matches 10k and a 2%DC of 2k hits the annual limit of 22k. With a 12%DC that same pilot would hit 22k with that same10k pre-tax contribution from the pilot. Above an income of about 100k per year, the LOA seems to pay out more either by using the higher limit or by reducing the required contribution from the pilot. So it seems to me that 100k per year is the crossover income, not 225k.
Am I missing something?
I=Pre-Tax Income
P=Pilot Contribution
M=Match
D=Company Direct Contribution
R=Total Retirement
Currently: R=P+M+D --> If we assume 10% pilot contribution: R=(0.1(I))+(0.1(I))+(0.02(I)) --> If I =100k: R=22k=10k+10k+2k
LOA: R=P+D --> If we assume 10% pilot contribution: R= (0.1(I))+(.12(I)) --> If I =100k: R=22k=10k+12k