MBCBP
 

Dudes -

I'm an outsider, but trying to get clarification on your market based cash balance plan.

The argument is that there doesn't seem to be any talk about it with regard to the AIP, so concern if my buddies is that you may not have achieved it.

My argument is that it was already achieved and implemented as part of your LOA #20-04, thus there's no reason for it to be discussed as part of the AIP.

Last I saw, as of this time last year, it was going through the regulatory process with the IRS and Dept of Treasury.


SO, bottom line, what's the status? Do you have a MBCBP (even if still in the works) or not?

Thanks

Ohhhh boy…lots to unpack.
The market based balance plan was an LOA that we haven’t heard much about since it was agreed upon. Whether it comes to fruition has a couple of obstacles.
1) The IRS
2) The company who is selective in which bargains to uphold.

The minimum balance (a few hundred grand to a small portion of the seniority list) has not been mentioned in the AIP. This has been much of the uproar.

Time will tell. We continue to wait on word on both accounts.

MBCBP was part of our Covid deals but it was only to be implemented as an optional plan that each pilot could opt in/out of. The irs, i believe, doesn’t allow that plan to be optional within a company. So it doesn’t look like it will be part of our retirement planning options any time soon. The big argument with the AIP was that a lot of soon to be retired pilots were planning on getting it implemented with a large cash infusion to their individual accounts. They are claiming that this was promised to them by the union. They were wrong on both accounts and are now decrying the entire AIP over it.

Last we heard about it was about this time last year. They said they IRS cannot confirm or deny if it will be optional. It appears we have to set it up to find out. We don’t have the AIP yet, but it was not in the cliff notes.

Also the “Minimum Balance” concept is a separate idea within the MBCBP. The idea that no pilot would retire without a minimum amount in their respective MBCBP account. If a pilot was below this number the company would plus up the pilot to the agreed amount. No mention of that in the AIP.

Quick answer? It will never happen. Why? The IRS will never allow it to be optional. Complete waste of time and resources. The end.

^ beat me to it. Unless the IRS has a change of heart to make it optional.

Thank you. EOT.