As of now what is being put out by our 'experts' is based on an unapproved proposal.

I would suggest one base their thinking and analysis on the existing approved plan language in the government source documents.

We are not a business owner...so we will not hold the dbcb trust as a principle. It will be held by a sponsor...likely our employer.

Any car sales sales pitch only highlights the good. I didnt read a single point in that press release that cited not one potential liability or risk.

Thats not reality.

If im trying to sell you a tax dodge the pitch of 'incremental' rate on the component im trying to squeeze out of the mark is highly effective.

An individual pays a net effective rate. The last dollar earned is taxed at the highest bracket achieved.

But that last dollar rate is balanced and offset by the first dollar of earnings which is taxed at the minimum rate.

Im 100% certain most tax filers pay a net effective rate less than the rate on the last dollar of earnings.

Whats your source its other than i suggest?

You arent buying it? Did you buy the previous db plan was 'fully funded'? At ANY point?

I'll bet my whole retirement that if I took the excess 401k DC cash and invested it in an s&p index I'd have significantly more money when I retire (after tax) than if I were to do this MBCP.

Maybe for guys with less than 10 years until retirment MBCP is appealing but anything more than that it's not worth it.

Heres the rub. If the trust fails to meet minimum ROI numbers to pay the contracted benefits...delta is gona have to cough up cash from annual earnings to make the cbdb trust solvent.

So ill say thanks now to all you young pilots for kicking in the dough from your paychecks.

I have not see anything in print from ALPA on this,but numerous sources that speak about cash based plans state you receive a statement at the end of each year.

https://www.emparion.com/cash-balance-plan-pros-cons/

People should at least read the link. An annual statement.....on your "hypothetical" account.

Gee...sign me up. Lol..

Exactly. At a great cost to the plan administrator aka Delta. Between $2000 and $10,000 per pilot. Plus the 1% administration fee. Should get my series 7 back and "help out."

Denny, I will not claim to be an expert but I was a licensed and bonded broker with a series 7 and 63. I also wrote for The Economist intelligence unit on mergers and acquisition.... And for Reuters. Disregard my advice at your own peril.

Fees are generally the killer in cash balance plans. Buyer beware. And they're typically used by partnerships where the owners and employees are one in the same, and approaching retirement. A real benefit is the ability to roll it over to an IRA when you go. The risk by the sponsoring company to have to make up any returns below the target return makes the scheme less appealing to corporations. Sounds like some good salesman have gotten ahold of your reps. Will be interesting to see if Delta is supportive. Probably best to hang your hat somewhere else..

At this point I'm not sure if I'm for or against a MBCBP. But I get the impression that it's being dismissed out of hand as an option by a lot of you. The devil will be in the details.

Denny