Dalpa R&I Roadshow

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09-12-2018 | 08:30 AM

#21

Denny Crane

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From: Kickin’ Back

Quote:

Originally Posted by notEnuf

Everything we get monetarily is company funded. This is just a single tax exemption strategy. If it’s optional and useful for those close to retirement I don’t see anything wrong with it but it has to be a 0 in both ledgers of the terms sheet. This literally costs both sides nothing. As always though the details of the plan rules matter.

Because it's a Qualified Plan, it would not be optional. The thing is it's not as advantageous to older pilots as it is to younger pilots because of the time value of money. I had to leave but the last thing they were talking about was money in retirement for younger guys. Assuming an annual raise of 3% and IRS limitations on DC contributions changing on the scale they have for the last few years, a pilot with 25/30 years to go (I forgot the exact years) will be able to save and FAE of 30% in the 401K alone. If you throw this Market Based Cash Balance Plan in the mix, over the same career it adds another 30+ percent to that FAE for a total of 60+ percent.

For the older guy without that time frame, yes, it saves money but obviously not anywhere near as much.

Denny

09-12-2018 | 08:33 AM

#22

Denny Crane

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From: Kickin’ Back

Quote:

Originally Posted by Peoloto

Short term it costs you your DPSP cash. Keyword your, so it is self funded.

If you want to look at it as a whole, your 401k is self funded too. We don't have to have a negotiated retirement plan but we do. The way you get the company to fund this is thru and increase in DC, not a direct funding percentage to the plan itself.

Denny

09-12-2018 | 08:36 AM

#23

Denny Crane

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From: Kickin’ Back

Quote:

Originally Posted by notEnuf

Skimmed too fast, sorry.

Then NO. This is VEBA all over again. I wasn’t able to attend but this sounds too familiar.

NO, it is NOT a VEBA. A VEBA is not part of your estate, this is. This is NOT subject to takeover by the company in event of a bankruptcy. When you retire, you roll it over, the entire amount, to an IRA.

You need to go to a roadshow.

Denny

09-12-2018 | 08:43 AM

#24

Denny Crane

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From: Kickin’ Back

Quote:

Originally Posted by Trip7

Cons: Not voluntary and Not self directable

Targeted 5% return? After inflation thats a 2% return. That’s not wealth building.

I’ll rather pay the taxes and allocate the money as I see fit.

Absolute No

Did you not get that you are saving 40% on taxes? That is huge!

I know there will be people like you that automatically say NO without even exploring the idea. With your investment ability you might even do better. The thing is, if you are indeed a union member, you need to consider what is best for the group as a whole. I was at this meeting and there were some guys there who where in their first few years. They were enthusiastic about this plan as long as it was funded thru an increase in DC.

I cannot explain this like they do at the roadshow. You really need to attend one and ask questions etc. Do not pass up the opportunity. My gut feeling was everyone at the meeting really thought this would be a great opportunity.

Denny

09-12-2018 | 08:47 AM

#25

Denny Crane

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From: Kickin’ Back

Man, I'm very disappointed in the close-mindedness of the responses here. You all really need to attend one of these roadshows.

Again, I will bet this plan gets A LOT of support from the line pilots in general.

Denny

09-12-2018 | 08:47 AM

#26

Hank Kingsley

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From: Power top

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Originally Posted by JamesBond

Thanks Denny.

Ditto, nice job. Thanks.

09-12-2018 | 08:49 AM

#27

Hank Kingsley

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From: Power top

Quote:

Originally Posted by notEnuf

Skimmed too fast, sorry.

Then NO. This is VEBA all over again. I wasn’t able to attend but this sounds too familiar.

One tongue, two ears, there's a reason.

09-12-2018 | 09:12 AM

#28

notEnuf

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From: N60.4858 W149.9327

Quote:

Originally Posted by Hank Kingsley

One tongue, two ears, there's a reason.

At least I admitted it. Thanks for the humble pie. Tough to be in 2 places at 1 time. I’ll review the material online. If it’s as good as stated the group will identify that.

My angle is my money, my problem. I want absolutely nothing to do with a voucher for future use. Call it what you want but promises have been broken. Bird in the hand etc.