The Question of “Optional”
01-26-2020 | 06:36 AM
#1
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From: Kickin’ Back
The Question of “Optional”
Ok, I posted this in another thread but feel like it needs its own thread for pilots to comment on:
The following is my opinion. From what information I can gather the "optional" choice is very complicated and there is a process that has to be adhered to. My understanding is Dalpa can say it will be optional because, at this point, it hasn't been determined yet that it can't be optional.
The first step is that something has to be negotiated with regards to the proposal. Lets just assume the proposal is negotiated as is. Once this is done then both Delta and Dalpa submit this Plan to the IRS and tell the IRS what they intend to do. It is then up to the IRS to approve or reject all or part of the Plan.
Since an MBCBP is legal in and of itself, the only thing that is possibly in question would be the "optional" nature of the the Plan.
The above brings me to a question. Why would the IRS not agree to the Plan being optional? If they don't and it applies to everyone then that will lead to more money that is tax deferred (not a good thing in the IRS's eyes) than if the Plan were optional where the IRS could collect more taxes now and on future investments of that money.
Standing by for incoming!!!
Denny
The following is my opinion. From what information I can gather the "optional" choice is very complicated and there is a process that has to be adhered to. My understanding is Dalpa can say it will be optional because, at this point, it hasn't been determined yet that it can't be optional.
The first step is that something has to be negotiated with regards to the proposal. Lets just assume the proposal is negotiated as is. Once this is done then both Delta and Dalpa submit this Plan to the IRS and tell the IRS what they intend to do. It is then up to the IRS to approve or reject all or part of the Plan.
Since an MBCBP is legal in and of itself, the only thing that is possibly in question would be the "optional" nature of the the Plan.
The above brings me to a question. Why would the IRS not agree to the Plan being optional? If they don't and it applies to everyone then that will lead to more money that is tax deferred (not a good thing in the IRS's eyes) than if the Plan were optional where the IRS could collect more taxes now and on future investments of that money.
Standing by for incoming!!!
Denny
01-26-2020 | 06:50 AM
#4
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If it’s not optional, I don’t want it. I don’t see how ALPA can sell it as optional now because it hasn’t been shown that it is possible to be optional. Why would the IRS object to the optional part? Because, as I understand it, it would take a tax law or at least rule change to make it so. This is our government we’re talking about and we all know nothing happens quickly with any .gov agency. I guess it’s a difference of perspective on those points.
01-26-2020 | 07:11 AM
#6
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A 20% pay raise would benefit me, but I wouldn't take that pay if it were a quid for caving on scope, training or work rules.
You oversimplify a decision point drastically with this post.
01-26-2020 | 07:18 AM
#8
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Why would the IRS not agree to the Plan being optional? If they don't and it applies to everyone then that will lead to more money that is tax deferred (not a good thing in the IRS's eyes) than if the Plan were optional where the IRS could collect more taxes now and on future investments of that money.
If approving an optional plan makes implementation of the whole thing more likely, the IRS actually reduces revenue over status quo.
01-26-2020 | 07:57 AM
#9
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Isn't that like saying he's guilty until it's proved that he's innocent?
The above brings me to a question. Why would the IRS not agree to the Plan being optional? If they don't and it applies to everyone then that will lead to more money that is tax deferred (not a good thing in the IRS's eyes) than if the Plan were optional where the IRS could collect more taxes now and on future investments of that money.
The above brings me to a question. Why would the IRS not agree to the Plan being optional? If they don't and it applies to everyone then that will lead to more money that is tax deferred (not a good thing in the IRS's eyes) than if the Plan were optional where the IRS could collect more taxes now and on future investments of that money.
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