gzsg

I’ve asked our pilot BOD member repreatedly for this information.

They make what they make and that’s fine, but keeping it a secret is unacceptable. They need to own it and be proud of their compensation.

We never should have let them buy back one share of stock until these retirement shortfalls were corrected.

IMO we are not going back to the old DB plan. I always hated it from the first because I knew it could evaporate.

That being said, we must make gains.

badflaps

Their heart is in the right place. Not a month goes by that they don't send me a coupon for Mighty Dog (Large).

gredenko

It's pretty simple. 21 guys are on the MIP plan (management incentive program). They achieve a bonus of 100% to 200% of their salary. For non Marines, that is twice or three times their salary. It starts with the regional directors and goes on up.

We get 15% profit sharing, they get 200% their base pay. So these guys are at a lower limit pulling down 1M a year.

C2019?

Taildragger1

I’m just thinking out loud now. What if there was a choice... two options.

One, an industry leading DC. Attractive to young pilots.

Two, An annuity calculated to make Deadzoners whole.

You get to pick the one that makes you happiest and leave the other one on the table. Your choice.

Superpilot92

agreed, i think the best option going forward is combination plan. Company ensures max 401k and we get something like fedex. Since there are limitations on 401k contributions theres only so much % wise the company can contribute before having to give it in taxed cash.

If we can ensure everyone is maxed out and come up with a vehicle to ensure a simulated DB plan at retirement for say 100K a year for 10 years minimum on top of your 401k. Theres bound to be a combo method to maximize our retirement outside of just maxing out 401k.

BMEP100

Being a United (former L-Cal) I have no dog in your fight. I am one of the Cal dead zone guys that got hit with the DB plan freeze in 05.

Don't be so quick to rule out some kind of DB plan till you know the details.

If you think the only plan worth having is a DC plan that relies on equity market returns and your skill as an investor- you must not understand sequence of return risk or historic market return risk.

With a DC plan your retirement is subject to risks such as the lost decade of 2000 to 2010. In a DB plan that risk is taken on by the plan and the company. (If they don't go bankrupt and drop it in the PBGC lap). AA tried that and failed however.

The laws have changed recently regarding DB plan funding and accounting, lightening the load on employers and Plan funding levels. Our Cal pilots plan in 2014 was considered "at risk" by IRS and was clos to shutting down lump sums. Congress quietly re-wrote the law and majically our plan became 100% funded without any additional payments from the company.

Ideally, a combination of both type plans would IMO, serve retirees best. Think of it like an annuity some pilots get talked into buying when they retire, but without the buy in part.

You are wise to keep an eye on your RI committee as well. They are subject to a lot of pressure to do what is popular with National, for political reasons sometimes at the expense of sound financial choices.

Our RI committee got talked into permanently freezing our DB plan, and replacing it with a DC plan, (without any snap back or make up), because DB plans had a bad name at ALPA national, and "everyone was going that way". It was shallow reasoning and hurt a lot of pilots.

Point of this missive; don't be dismissive till you have all the facts. And all the facts may not reside with your R&I chairman.

tomgoodman

You’re lucky! Last year the F/As got it changed to Meow Mix.

badflaps

Meow mix makes me want to whizz on couches and chairs, not to mention an urge to hide in closets.

Planetrain

https://www.daveramsey.com/blog/retirement-crisis-annunities

Dave's not a fan

Gunfighter

No matter how you slice it, annuities are loaded with fees. As Planetrain points out in the linked article, the expected returns are lower than an equity mutual fund. Additionally as BMEP100 points out, ALPA National or even DALPA's best interest may not serve our individual best interest. We have a responsibility to keep our eye on the R&I folks.

I applaud the efforts by our R&I team in finding enhancements to our retirement plan. The first step should be a 20% DC, so we can hit the IRS max with company funds. Subsequent steps can explore less efficient options like annuities.