FDX Cost Reduction Actions
12-23-2018, 06:11 AM
#61
Line Holder
Joined APC: Dec 2016
Posts: 97
As you increase B Fund % for those making over $275k, more and more money will be left on the table.
As it stands, if you’re making $300k, you’re leaving $2,000 on the table at 8%.
If you increase it to 12%, you’re now leaving $3,000 on the table.
Increase that salary to $350k, it’s $6,000(8%) and $9,000(12%) of lost contributions.
But yes, you are correct, for those making <$275k (like me). you’re good. That wasn’t my point.
As it stands, if you’re making $300k, you’re leaving $2,000 on the table at 8%.
If you increase it to 12%, you’re now leaving $3,000 on the table.
Increase that salary to $350k, it’s $6,000(8%) and $9,000(12%) of lost contributions.
But yes, you are correct, for those making <$275k (like me). you’re good. That wasn’t my point.
12-23-2018, 06:44 AM
#62
Banned
Joined APC: Jun 2018
Posts: 1,838
Originally Posted by Reese
As you increase B Fund % for those making over $275k, more and more money will be left on the table.
As it stands, if you’re making $300k, you’re leaving $2,000 on the table at 8%.
If you increase it to 12%, you’re now leaving $3,000 on the table.
Increase that salary to $350k, it’s $6,000(8%) and $9,000(12%) of lost contributions.
But yes, you are correct, for those making <$275k (like me). you’re good. That wasn’t my point.
As it stands, if you’re making $300k, you’re leaving $2,000 on the table at 8%.
If you increase it to 12%, you’re now leaving $3,000 on the table.
Increase that salary to $350k, it’s $6,000(8%) and $9,000(12%) of lost contributions.
But yes, you are correct, for those making <$275k (like me). you’re good. That wasn’t my point.
12-23-2018, 06:46 AM
#63
Gets Weekends Off
Joined APC: Aug 2006
Posts: 1,820
Originally Posted by pinseeker
Not true, they will see the same exact amount of increase as those making $275K. They will even see more contributions to their B fund than those making less than $275K.
Admitting your lack of understanding is the first step in recovery.
Maybe with a little more understanding you'll see that this VB plan isn't worth giving up our current A plan for and that there are much better options out there. All we have to do is say "NO."
Admitting your lack of understanding is the first step in recovery.
Maybe with a little more understanding you'll see that this VB plan isn't worth giving up our current A plan for and that there are much better options out there. All we have to do is say "NO."
Originally Posted by Noworkallplay
Simple question for you. So lets say we compare a guy who makes 275k to a guy who makes 350k. Which guy will have the most company money contributed to his 401k? Or will they recive the same? Now what about the guy who makes 450k?
Last edited by pinseeker; 12-23-2018 at 07:08 AM.
12-23-2018, 07:06 AM
#64
Gets Weekends Off
Joined APC: Aug 2006
Posts: 1,820
Originally Posted by Reese
As you increase B Fund % for those making over $275k, more and more money will be left on the table.
As it stands, if you’re making $300k, you’re leaving $2,000 on the table at 8%.
If you increase it to 12%, you’re now leaving $3,000 on the table.
Increase that salary to $350k, it’s $6,000(8%) and $9,000(12%) of lost contributions.
But yes, you are correct, for those making <$275k (like me). you’re good. That wasn’t my point.
As it stands, if you’re making $300k, you’re leaving $2,000 on the table at 8%.
If you increase it to 12%, you’re now leaving $3,000 on the table.
Increase that salary to $350k, it’s $6,000(8%) and $9,000(12%) of lost contributions.
But yes, you are correct, for those making <$275k (like me). you’re good. That wasn’t my point.
You stated that "if we increase the B fund “significantly” with no cash over cap, pilots making over $275k see no increase...."
Based on the 2018 401(a)(17) limits, if we increase the B fund contribution to 12%, the pilot who makes $275K or more will see an increase in B fund contributions of $11K, or 50% more than they received this year.
Again, cash over cap would be great. I am all for it. But to state the an increase in the percentage for B fund contributions doesn't help those who make over the 401(a)(17) limit is false.
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