I think a lot of the decision boils down to how you invest. Are you an aggressive investor and enjoy spending time researching? If that is the case, you probably don't want your money tied up. I'm not an aggressive investor, but I am still on the fence. The extra cash has always been nice at the end of the year. But not paying the tax and dues may be enough of a benefit.

So the pilot gets no say in how this MBCBP money is invested, is that correct? It's all in the same fund? But we guaranteed it will never get less than what we put in.

I have to see about the withdraws. At age 59.5 you can withdrawal it, I am guessing at whatever your tax rate is. That isn't going to make much sense for most people here unless you are looking to retire early.

 

You are spot on with your assessment. There is a niche application of.in service withdrawal for pilots who file with a real estate professional election and IRC 469 combined activity election. IYKYK

 

O-U-T. no brainer for my situation.

 

Out as well. This is a pacifier for a very select group here who want their pensions back. That’s all. I’ll pass.

 

My gut tells me that at least half of the pilots who opt out with the intention of getting better returns through their own investments instead let those funds dissolve into everyday life expenditures. Costco runs, boat gas money, kids college money, vacation, etc. There’s nothing inherently wrong with those investments in one’s current life vs future life, but since I’ve met a few humans I’m confident they won’t all follow through every year through retirement. And of those who do keep the money invested into retirement, some percentage will make choices that underperform the MBCBP (particularly having paid ALPA dues first).

If 25% was the number DALPA told us we needed to replace the “stolen pension”, rising only to 18% leaves a shortfall made worse for those who won’t commit the full 18% to actual retirement. Of course some will make 401k contributions and far exceed 25% even while opting out of MBCBP. Naturally it’s a free country and I wish newbies could also make their own decision, but there’s a certain population for whom the MBCBP will be a forced-saving vehicle they may ultimately not regret.

 

this is a great and true analysis.

 

​​​​​​I doubt that. At our income level most pilots should be able to put away 15-25% of their yearly take home. Even more if a Delta pilot has a spouse that works.

 

I'd venture to guess that many of the pilots who end up with a lot of excess are getting there because they're loading up their 401a. Most people who do that, are doing so for specific reasons. The ones that actually take the time to opt out, will probably take action. I think many of the people your referencing are more likely to say they're going to opt out, but not actually do so.




Most current DAL pilots don't view the "stolen" pension as the benchmark for what their retirement should be, which is why it's odd that so many will be forced into something that was derived out of the desire to get back to the pension replacement.

 

At our income level, pilots shouldn’t be living paycheck to paycheck, or GS to GS, but some are.

It’s also much easier to say “I’ll invest that money” than it is to actually do it. If pilots aren’t methodically investing their spill cash now, it’s not likely that opting out of this new plan will change that.

 

​​​​​​Definitely some are, but the majority of Delta pilots aren't IMO