Purely FYI, as an update to this. The DL MEC just announced a 2024 dues refund from its internal funds, similar to last year (for 2023), in the amount of $5M. While I don't know my exact share of that, a reasonable estimate of my 2024 effective dues rate will probably be around 1.48- 1.5%.

 

Solid info thanks

 

The under reported downside of the tax free LTD (particularly for a younger pilot) is that while you will receive your company 401k contribution in either case (calculated from your pre disability income level) if you opt for the tax free LTD then that contribution comes to you as taxable income and NOT into your 401k. For a younger pilot that could be forgoing some significant gains.

Should you not have the tax free LTD then it goes into your 401k. I believe any post LTD sick, vacation, or ESB payouts are seen as taxable income and you may have the ability to direct those into your 401k.

As always, consult someone much smarter than me before making financial decisions.

 

The general math works like this. If you are close (<10 years) to retirement, could use a little more in the ole 401(k) but aren't buried in expenses then pre-tax is probably good. You'll end up with 40% of your gross income as take home but keep similar retirement contributions. If you are younger (broker), then post-tax is probably better because the extra income will help you keep your house. If it turns out you stay disabled forever (this is extremely atypical) then the loss of the heavy DC could be detrimental in retirement. But generally not being able to work for most of your life is very detrimental to retirement. So more likely you get more money to live (but less tax sheltered savings) for a few years then get back to flying with no debt or foreclosure and continue until retirement a little less well off than the lucky ones who didn't have health problems but still far better off than 70-80% of the population.

 

AS did as well. Between national and MEC, I got a couple grand back.

 

Not an opinion one way or the other, just an FYI. APA is on an indefinite dues holiday. I’ve avoided $900 in dues since the last time they were deducted on 6/15.

 

At AA we will end up paying around 0.5% this year if the dues holiday continues through the end of the year.

 

Isnt the the APA dues holiday is just them dispersing funds after a financial judgment against the company over a grievance?

 

Yep, really nothing to brag about. There was also a couple month dues holiday last year after the contract with the excess money collected during negotiations (our rates go way up whenever we are in section 6)

 

• “Until such time as the Committee cannot come to an agreement on merger terms, the Board of Directors does not approve a tentative merger agreement for submission to the membership, or the pilot group votes on a tentative merger agreement, or such time as APA reserves are depleted to an amount of $50M, APA shall be on a dues holiday.”