Originally Posted by
NuGuy
Explanation I was given is that SAP calculates our paychecks, and they won’t display anything on the pay stub that they don’t calculate themselves. To comply with IRS rules, Fidelity calculates the contribution (which is not a simple 16/17/18%) and sends the bill to Delta to contribute. That payment is once a month, which is standard for DB plan funding, and the results posted by the subsequent 15th, however interest accruals start back to the date of contribution. So while SAP could calculate a contribution number based on a percentage, it’s not the same number that Fidelity calculates, even though the value is identical.
There are no fund allocations listed because there aren’t any. The funds are invested according the investment strategy required by the PWA. Last I read, the company chose not to invest in any specific commercial/retail funds and elected to self-manage, which if you’ve been following the NWA DB plan, they’ve got a reasonably successful track record.
This. DB plan funding works differently than a DC (which actually can be only once a month -think 401k-, DL does it per pay period) but a DB plan is journaled at the end of the month. Easiest analogy is when someone talks FAE, it's 12/24/36/etc months. Not per pay period. In the end the money moves and the balance of your "part" is displayed. These plans are new to the airline world (pretty sure DL is the first, others are now implementing) but cash balance plans aren't new to the likes of other professions that hit the 415c1A limit or 401A17 limit (total contribution or income; whichever first). Fidelity knows what they are doing and it all gets back checked along the way. Payroll companies (SAP for DL) have to be able to figure out taxable income (current year) to display on a stub, and tax form...well; as previous poster mentioned, it's now not taxable and a DL to Fidelity function instead of showing excess/excess plus previously, which was taxable. Can't post outside the math you can't show. Still work to be done there, but the math can be figured out. Let it go for another month and you will be able to do the math on the journaling to see the 401K DC contribution hitting the MBCBP DBfund. Looked at this post for a bit to try and keep it clean and concise. Best I have to explain.