Originally Posted by
AKNGPilot
Go read the Contingent Benefit Rule at
https://www.irs.gov/pub/irs-drop/rr-08-40.pdf. It prohibits the employer from incitivizing one retirement/benefit plan over another in a meaningful way. By limiting the amount of direct contribution in to the PRAP, the company is going beyond giving an incentive, and is forcing me to funnel more cash in to the PRAP. I am not smart enough to know why the company is actually doing this, but I am positive this isn't good for the pilot group.
I understand the rule. Why in their interpretation of the rule, it requires a limitation to us and not Delta is a question that should be answered.
Seems like they have really missed the mark by not copying an industry precedent.