Originally Posted by
george7117
The MEC is voting on this LOA in the next two days. My opinion: The LOA is severely slanted towards the most senior and limits how much the company can put into your PRAP (not opinoin). Someone is trying to "preload" the MBCP balance as to drive down initial fees. So basically, all of us will have to pay so those that want the MBCP can have lower ancillary fees. Give that some thought. Text and email your reps accordingly. If they vote against the majority, hold them accountable. I ain't saying how to vote, I'm just saying educate yourself and have your reps work for you.
I don’t think this is true. How is this slanted toward the most senior? I’ve only been here 5 years and plan to take absolute full advantage of this as soon as possible. I think many of our pilots will love this option, old and new.
This sets up rules starting in July 2025. It is very likely by this time the IRS will have made their judgement on our CBP setup. Almost the only outlying difference between ours and Delta’s (and literally dozens of other non-airline businesses) is the option to change our spill from/to the RHA/CBP every year.
Directly from the LOA companion guide:
”Company contributions (including the 17% and Vacation Forfeiture) contributed to the Pilot
Retirement Account Plan (PRAP) will be capped at the PRAP Direct Contribution Limit, which is
determined as IRC 415(c) minus IRC 402(g). For 2025, this limit is $46,500 ($70,000 - $23,500). This
provision is to comply with the IRS Contingent Benefit Rule.”