I used the 12 year MD88B pay rate by mistake. Still using the MD88B rate after 4 years with the company is very conservative and should more than offset my error.

Look at the definition of annual compensation under section 2 and you will see it excludes the DC as well as the previous years PS, amongst other things.

Or you can work backwords from last year and see 14.2% of your gross income (including the DC contribution) is clearly not included in the PS payment.

You're not wrong, my 3+ decades of compounding interest still comes after 8 years making less than 40k with a 401k match that was "2% of the first 5%" or some made up number that meat pennies. Saved as hard as a could and only had 30K in my retirement account when I left the regionals. Age 65 was a huge part of that. The difference is I have time to recover.

Your PS amount is determined by adding together your Flight Pay and Flight Pay Advance from your Dec. 31 pay check. Then multiply that by what ever the PS percentage turns out to be. DC excess is not part of that number.

Denny

...and I for some crazy reason used 6th year rates. Bonehead move on my part so it actually makes my posted numbers higher than they should be by a few thousand bucks.

I get you were trying to figure out sailings math, but I would strongly disagree with including DC in any annual compensation calculation. For comparison or any other reason. Did anyone include the company DB (non) funding when it was in play?? Would you access it to pay your bills? Nope.

Hmmm....if my straight line pay rate is $200/hr...and I pick up a 2 day trip worth 10 hours....did I make $2000 more....or did I make $2000x1.16(DC) or $2320 more......or did I make $2000(1.16)(1.16)....which is the extra DC AND PS for a total of $2691 more?

And to answer you question....yes, I think to a degree they did include DB "funding"....that is why pilots tried to bump up their top 3 years prior to retiring

Personally, when I look at picking up any extra flying I use the top end number because that is how much my net worth increased

How many times are we gonna rehash this "version" of PS/(DC) is not pay? There is no correct answer that fits all

Profit sharing doesn't include the DC contribution - it's just your regular pay - add FLT ADVANCE and FLT PAY on your paystub then multiple it by the PS percentage.

It comes out to around $189,000 in your example above - but I've been here more than a decade and only hit more than 900 hours in a year a couple of times. I've been on reserve a fair amount of that, but even when I was senior and had a line on the 737, getting above 82 hours or so a month was pretty hard to do.

The biggest advantage to a higher DC % is that people who aren't topping out the contributions do it earlier in their career, reap the tax benefits and TVM makes it good for them. For the people who are maxing out the 401(k) limits already, they can still invest the money, it's just taxed. Which is what they could do with a higher payrate away.

But, actually, it is a hit to those already maxing out the DC contribution because they WILL NOT receive PS on the DC excess.

So good deal for the more junior pilots...bad deal for the more senior when compared to straight line pay increases

Exactly right. Tax avoidance is a 401(a) contribution rolled into a Mega Backdoor Roth IRA. Tax evasion is contributing to a child’s IRA under the guise of earned income when the child did not in fact have any legitimate earned income.

So everybody that thinks cute to have their 2-year-old “mowing lawns” or their infant “influencing” on social media is obviously comfortable with committing ongoing felonies. I mean, if your kid is actually a child actor, then good on ya for securing their financial future. Everybody else, you’re gonna have to choose between waiting until your kids can legitimately have earned income to start the IRAs and smiling and winking while you break the law. I’m not judging anyone that does this, just asking them to be honest about their conduct.



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