Cash over Cap?
 

OK, so I've talked to some people that say we don't get paid cash over cap for the B-Plan.

Then I talked to a union P to P person, and he said we did.

Has this been covered in the road shows?

Is it somewhere in the Q and A?

If we don't get paid cash over cap, our B-plan is not really 9%.

I am already voting no, but I would think no cash over cap would be a major selling point to get others to vote no as well.

Anybody got any proof one way or the other?

I'll start looking for the answer, but I thought someone may have already researched it.

You could read the Q&A

The P to P person was incorrect, or did not understand your question.

B-plan stops when we hit the IRS limits, both in current language and in the TA.

What is in the TA is cash over cap protection should the IRS limit be reduced. Something that has been proposed several times as a method of insuring those greedy 1%'s pay their fair share. And if you read some of the propaganda, you learn that the greedy 1% start at 100k of income. So why should 50+k of their compensation be tax free. (want to say the current limit is 53k of deferred compensation, and yes, that includes your 401 contributions as well)

So basically, for any who make over 260k, a 1% B fund increase actually just means a $2600 B fund increase. Hard to believe that cap wasn't raised at all.

The Cap is usually raised annually by the IRS I think it went up about 1k a year the last couple of years which roughly equals the rate of inflation.

We do have a cash over cap when you think about our excess sick leave buy back.

BS. Going ten years without calling in sick is not a Cash over Cap system. It is a bribe by the company to not use your negotiated benefit of sick time accrual.

I get it, the no voters are trying to decide between joining the Sons of Harpy or the sparrows, but how they pay excess sick leave is a loose example of cash over cap. Don't have me arrested, I don't fly sick and am still about 14 years away from ever reaching my chance for excess sick leave buy back.

Cash over Cap
 

The 2015 IRS compensation limit is $265000. Currently Max B fund is 7% of the compensation limit ($18550). A salary of $300000 receives the same. The TA raises the percentage but the IRS compensation limit 401(a)(17) still limits the payout. The 2016 limit hopefully will be $270000 so 8% yields $21600. The max amount increases but it's not a true 7/8 percent of salary...never has been.

Some are confusing IRS limits when using the term "cash over cap". The current SBB (sick buyback bank) is an example of cash over cap. With a full sick bank, 72 hrs of pay is deposited under the umbrella of RSP unless the IRS Defined Contribution Plan limit ($53000 for 2015) is exceeded. In that case, the amount exceeding the cap is paid to the pilot in taxable cash. So an incentive not to call sick has been provided for many years. This is the only cash over cap in our current contract.

If you are ~50% or better on the seniority list, there is NO CHANGE to your retirement! The B Fund increase only helps the bottom half of the seniority list. After you reach the IRS limit, contributions stop.

The TA provides a "Cash Bonus" for retirement instead of the traditional .02% bump in the 2% multiplier. Neither of these are good for the WHOLE SENIORITY LIST.

Lag,
Don't try and sell one piece of the retirement strategy already in the CBA as reason to justify accepting the TA. That makes no sense!