Originally Posted by
johnso29
Slow,
Can you dumb this down a little for me please? I'm reading Sec 3.I Profit Sharing Plan. It says the payout calculation is based on PTIX which is pre-tax income levels, right? So if the company makes $0-2.5 billion then 15% of the PTIX is paid.
Does that mean 15% goes to the pilot group, & then the pilots split that 15%? Is our individual shares then based on PTIX, or is split evenly among all pilots?
Thanks for putting it in simple terms.
If you look through the table that shows the profit sharing plan, you'll see that it is for
all employees. Incomes are totaled (with the exclusions in the definitions), then each employee is paid their percentage based on their income to the total pool. Pilots are a little more than 1/3 of the income pool. Everyone sees the same percentage increase to their income, and then DC contributions are made on that additional money.
Remember also that while it's called "profit sharing", it's actually pre-tax income sharing. Those write downs (among others) that ACL mentioned earlier in the thread are specifically excluded from the calculation.