Notices

Dalpa R&I Roadshow

Old 09-11-2018, 07:53 PM
  #1  
Gets Weekends Off
Thread Starter
 
Denny Crane's Avatar
 
Joined APC: Sep 2008
Position: Kickin’ Back
Posts: 6,966
Default Dalpa R&I Roadshow

Today I attended the R&I roadshow on Enhanced Retirement and, before I make any other comment, I want to encourage everyone to attend one of these roadshows. It will be well worth your time. It doesn't matter whether you are young or old, a brand new hire or a 30+ year employee.

The following is a synopsis of the meeting. Much more was discussed but I wanted to throw this out there. First they started out by saying any type of enhanced retirement needs to be equitable for everyone. Then they discussed the two types of "Qualified," meaning pretax, retirement plans, DC & DB. A DC has a maximum contribution of $18,500 this year. It doesn't matter what kind or how many DC plans you have, the max you can defer is $18,500/year and the max that can go into a DC is $55,000 including contributions by the company. Any excess DC is paid out as DPSP CSH.

The roadshow was essentially about how to protect this DPSP CSH from being taxed. The only way to do this is to have some sort of DB. Now I know everyone out there thinks "DB" is a dirty word. If you think so, you really need to go to one of these briefings. Modern DB's are nothing like the old, traditional DB. They talked about an option called a "Market Based Cash Balance Plan." Pros: This plan is always 100% funded and assets remain in a pilots estate if s/he dies before retirement. It is also safe from the company in case of a bankruptcy. There are more than 23,000 of this type of plan out there. Cons: Participation is not voluntary and it is not self-directable.

Here is an analogy. Think of all our money in the plan as many individual bubble within one big bubble. Each individual bubble be a pilot and his particular contributions. The plan would be targeted conservatively to make an average 5% return/year. The contributions would come from DPSP CSH. This would avoid the taxes and Alpa dues.

Establishing this type of DB plan would more than likely not be difficult to negotiate with the company and here is why. Right now Delta pays more than $132 million a year in DPSP CSH. Since this is paid as ordinary income it is ALSO subject to the payroll tax paid by Delta. This payroll tax money now being paid could go towards establishing and maintaining the plan.

Well, that's all I'm going to write now and I will try and answer any questions anyone has. There was so much information given that I cannot do it justice.

Denny
Denny Crane is offline  
Old 09-11-2018, 07:58 PM
  #2  
Gets Weekends Off
Thread Starter
 
Denny Crane's Avatar
 
Joined APC: Sep 2008
Position: Kickin’ Back
Posts: 6,966
Default

They talked about other forms of enhanced retirement such as a variable annuity plan in the qualified retirement arena. They also talked about non-qualified ways such as deferred compensation.

One thing I forgot to say about the plan talked about in my first post. You are always 100% vested in it. When you retire/leave the company you would rollover your entire balance into an IRA.

Denny
Denny Crane is offline  
Old 09-11-2018, 08:07 PM
  #3  
Gets Weekends Off
 
Joined APC: Jun 2014
Posts: 681
Default

Did they say how someone would be treated for a 64 year old who put DPSP monies in for a month or two before retirement? Doesnít sound good for the ďdeadzonersĒ

Sounds similar to a deferred comp program but the money that is deferred should at least earn some returns.
Ray Red is offline  
Old 09-11-2018, 08:31 PM
  #4  
Gets Weekends Off
Thread Starter
 
Denny Crane's Avatar
 
Joined APC: Sep 2008
Position: Kickin’ Back
Posts: 6,966
Default

This roadshow was strictly looking at enhanced retirement options for the entire group. Nothing was talked about or discussed regarding any type of plus up for the deadzoner group.

Denny
Denny Crane is offline  
Old 09-11-2018, 08:55 PM
  #5  
Gets Weekends Off
 
Joined APC: Jun 2014
Posts: 681
Default

Originally Posted by Denny Crane View Post
This roadshow was strictly looking at enhanced retirement options for the entire group. Nothing was talked about or discussed regarding any type of plus up for the deadzoner group.

Denny
I can imagine they would want to wait till the last possible moment to light that fuse
Ray Red is offline  
Old 09-12-2018, 02:21 AM
  #6  
Gets Weekends Off
 
Joined APC: Apr 2014
Posts: 768
Default

When the retirement age was raised from 60 to 65 that gave all pilots, including deadzoners, at least another 1.5 million of income...Everyone should have plenty for retirement, but I'm all for getting more money.
3 green is offline  
Old 09-12-2018, 03:58 AM
  #7  
Gets Weekends Off
 
Joined APC: Nov 2011
Posts: 3,861
Default

Denny, while I agree that it could be a benefit...at the end of the day it's still your money that's contributing right? It's not company money. It's nice in the aspect of it forces you to "save" and saves on some taxes and dues but it's still your money just going from one hand to the other. I'd much rather see something company funded.


Sent from my iPhone using Tapatalk
tunes is offline  
Old 09-12-2018, 04:59 AM
  #8  
Gets Weekends Off
 
Joined APC: Sep 2015
Posts: 631
Default

Originally Posted by tunes View Post
Denny, while I agree that it could be a benefit...at the end of the day it's still your money that's contributing right? It's not company money. It's nice in the aspect of it forces you to "save" and saves on some taxes and dues but it's still your money just going from one hand to the other. I'd much rather see something company funded.


Sent from my iPhone using Tapatalk
Ding ding ding
Peoloto is offline  
Old 09-12-2018, 05:43 AM
  #9  
Gets Weekends Off
 
notEnuf's Avatar
 
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 6,604
Default

Originally Posted by tunes View Post
Denny, while I agree that it could be a benefit...at the end of the day it's still your money that's contributing right? It's not company money. It's nice in the aspect of it forces you to "save" and saves on some taxes and dues but it's still your money just going from one hand to the other. I'd much rather see something company funded.


Sent from my iPhone using Tapatalk
Everything we get monetarily is company funded. This is just a single tax exemption strategy. If itís optional and useful for those close to retirement I donít 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.
notEnuf is offline  
Old 09-12-2018, 05:44 AM
  #10  
Gets Weekends Off
 
Joined APC: Nov 2011
Posts: 3,861
Default

Originally Posted by notEnuf View Post
Everything we get monetarily is company funded. This is just a single tax exemption strategy. If itís optional and useful for those close to retirement I donít 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.


He already said they said at the brief it wasn't optional...


Sent from my iPhone using Tapatalk
tunes is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
DALFA
Delta
30
09-21-2016 09:29 AM
newKnow
Delta
78
12-07-2015 08:03 AM
TonyC
FedEx
72
10-12-2015 05:46 AM
gzsg
Delta
10296
07-10-2015 01:42 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread