Bainite

Northwest had a MD-80 category with only 8 aircraft in MSP for a while. Got rid of them around 2000 - 01 timeframe.

BobZ

yup. its a 16% pay raise each month once the 401 limit is reached.

there is going to be a lot of movement over the next few years, reliably counting on the spot you want, being there when you want it, is a bit of a big 'if'.

now, if one had a 99.9% certain MD in their future....the calculation to pick your spot will be much simplified and assured.

Chakerik

That's a pretty good deal. M88A sounds better and better...

Imapilot2

How long does that LTD last? If your 25 does it last till 65?

MSP7ERB

I'm finally senior enough to get LCA trip buys and a GS per month so it's not really much of a pay raise to go MSP88A. The extra work and crappy plane/trips isn't worth it to me. I make equal $$ in the right seat of the 7Er. My 401 limit has been reached by Oct the last 2 years. As far as the MD golden ticket you can only go where your seniority can hold. At a 10Kish seniority #, it doesn't buy my much as someone who lives in MSP. To each their own but the math doesn't work for me. I'll hold out and want nothing to do with MSP88A.

FL370esq

Yup....so long as you can't hold an FAA Class One.

Gunfighter

The 415C limit is what triggers the payout of your 16% retirement contribution. The two are vastly different.

Denny Crane

In essence, the money received after your 415c limit has been met is NOT a pay raise. It's just another way you receive compensation that is due to you when an arbitrary government limit has been met. You are going to get that 16 percent whether it goes towards 401k or comes in your paycheck.

Denny

BobZ

had used the exact code section in the past....but it generated some confusion, hence the simple 401 reference.

It is the 415c cap that triggers the excess 16% to the paycheck. There are a couple component part to this calculation. If anyone is not clear it would be a good idea to read the irs publication on the subject.

A pilots contribution is limited to $18k/yr. This must be accomplished before ytd income reaches $270K. A 7% contribution level should accomplish this if one expects to exceed $270K in annual earnings.

The total annual contribution limit, excluding make up contributions, is $54K. So $54K total - $18K pilot contribution = $36K of annual employer contributions. $36K / 16% delta contribution level will be reached at ytd income of $225K.

The annual increases in the 415c limits are probably the best chance for high w2 earners to realize an effective tax cut. It would be worth the call to remind our cba of that reality.

excerpted:

Section 415 of the Internal Revenue Code (Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost‑of‑living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under Section 415. Under Section 415(d), the adjustments are to be made following adjustment procedures similar to those used to adjust benefit amounts under Section 215(i)(2)(A) of the Social Security Act.

Effective January 1, 2017, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $210,000 to $215,000. For a participant who separated from service before January 1, 2017, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2016, by 1.0112.

The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2017 from $53,000 to $54,000.

The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of Section 415(b)(1)(A). After taking into account the applicable rounding rules, the amounts for 2017 are as follows:

The limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) remains unchanged at $18,000.

The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $265,000 to $270,000.

BobZ

True statement. But its still a good feeling to have filled the retirement account and now have that money in the hand each paycheck to maybe then go buy that new boat.

The point of my suggestion is it may be prudent to approach ones career plan from both a strategic as well as tactical decision and thought process.

We all should appreciate how quickly this industry can turn. And opportunity and runway behind us are not of much use.