Locking funds in a retirement account isn't the only way to have money for retirement. There are numerous tax efficient options available for DPSP Cash. In many instances, those options provide income before retirement age. A portfolio of assets producing dividends, partnership distributions, royalties and rental income is a fantastic way to have retirement income before mandatory retirement age.

 

EXACTLY!!! No need for a min balance option for pilots who had 17 years to plan for it.

 

The MBCBP is a win for everyone. Whether you participate now or later regardless of the minimum balance option being suggested. For those of you who were a UNA don’t forget that those so-called greedy pilots (who got pensions canceled or frozen) voted to not send you to the street without payment, that would’ve come out of their pockets. Instead during a period of unprecedented world strife and the unknown future of the airline industry those pilots didn’t want the UNA’s to suffer like they had personally did in the past (B scale, furlough in 90’s and post 9/11 where zero furlough pay was given). As far as min balance…. I’m sure there will never be a way to convince some of you, even if you were a UNA that sometimes some on the list benefit more than others. There are selfish people at all ages. And all seniority.

 

just so that I’m sure, you’re saying that anyone opposed to the minimum balance is “selfish?”

 

Some impressive revisionist history here. Nobody on property gave up anything to save the UNAs. Instead we got a lower TLV, positive space commuting, ARCOS batch size control, and ARCOS violation pay. You make it sound as if we took up a collection from our monthly pay to pay affected pilots their 30 hours a month.

There’s also no way to prove this, but I bet the vast majority of vocal min balance proponents now were the ones in 2020 saying “I had to go through it, so why shouldn’t you. It’s a tough industry.”

 

My concern with the MCBP. It's "deferred compensation"

Although ALPA would LIKE for it to be optional, my understanding of current IRS policy is it won't be. We all pay excess in or none of us do.

I have 21 years until retirement.

There are pilots on property with 40 plus to retirement.

Who is to say the MCBP will be there or properly funded if Delta goes bankrupt when I'm 63.

The Pension was bankruptcy resilient until it wasn't. There is also the concern of where the money goes if you don't live long enough to get it. That, based on my family history is a valid concern of my dependents. My father lived the longest of all my male ancestors. He died a week after his 66th birthday after losing his medical at 59.(not an airline pilot but still)

I, as a granted fairly junior Captain don't hit the IRS limits. It unless I am borking up the math is just under $381k gross to hit the 2022 $61k limit (ignoring over 50 catchup limits for now)
$381,250* 16% = $61,000
$381,250 at $271 and hour is a bit over 1400 hours pay.

Granted this is year 5 321 A pay (even more hours if I ever touch a 319/20)

Even in a year where I had 2 months rolling thunder, fairly high ALVs and a couple one or two day GS most months, i'm not getting close to that.

Im not seeing where the benefit is.

If I have dorked up some assumption, or my numbers are wrong, (got from irs.gov, but I'm not a CPA or tax guy) please correct me.

 

For 2022, the IRS compensation limit is 305k, so you will start getting dpsp cash then. Next year it’s $330k.

What will be interesting about the optionality is how they handle it if the irs says it’s all or nothing. They have stated it will need to be voted on again. Would they combine that vote with a contract vote if the events occurred at the same time? I sure hope not.

 

don’t forget a lower GS trigger.

To your second point the biggest FB advocate for the min balance was probably the most vocal opponent to 20-04, and I think that soured a lot of UNAs. but that does not mean there are not plenty of others who would be candidates for the min balance who also would have helped out us UNAs.

 

I keep seeing “DPSP.” Only a year on property here, but I assume that differs from the DC 401k? If so, where can I read more about it?

 

Do you know where in the IRS regs the compensation limit is 305/330? I can find the "max is 61k" and "no more than 100% of your compensation" but I haven't done an exhaustive search of IRS regs.

Non related to contract, but I'd almost prefer if the IRS took X percent off the top and I never had to worry about having some record from 6 years ago, audits, filing, nothing. Just here is XX percent of your gross, have a nice life. Our tax code sucks. But back to contract limits.

Did not know there was a max limit, other than can't exceed 100%. Thank you.