Originally Posted by
ohaiyo
Sorry to be "slightly" off topic here, but can someone explain to me what "pensionable" means? Or at least what the implications are when it comes to earnings that are pensionable vs. non-pensionable? I've looked at the MW definition of the term and it doesn't really give insight into what it means as far as benefits like the MBCBP are concerned. TIA.
I’m sure there’s a more complicated, specific definition, but I’ll try to simplify it. It’s basically any form of income that can earn credit for direct contributions by the company.
For example, take the profit sharing at SWA and DAL for example. Let’s say that both companies have pilots that earn $20,000 in PS. Since PS is pensionable at DAL, their pilots will earn 18% DC in 2026. That means that their PS will credit another $3,600 (20,000 X 0.18) into the 401(k). OTOH, SWA PS is not pensionable, so they do not earn any extra credit to the 401(k).
As another poster pointed out, per diem is not pensionable and FDX doesn’t not include it in per diem DC calculations.
Thats my understanding of it anyway. Maybe a DAL pilot can chime in.