UPS Pilots Reach TA
07-01-2016 | 08:43 AM
#21
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From: 767 FO
FDXLAG,
Are you guys at 9% now? I thought you just got bumped up to 8%? Even so, with the federal limit of $265k, 12% is $31,800 a year and 9% is $23,850 and 8% is $21,200. Even $8k a year over 25 years is $200k and that doesn't count the time value of money and compound interest.
Where are you getting $50k?
Are you guys at 9% now? I thought you just got bumped up to 8%? Even so, with the federal limit of $265k, 12% is $31,800 a year and 9% is $23,850 and 8% is $21,200. Even $8k a year over 25 years is $200k and that doesn't count the time value of money and compound interest.
Where are you getting $50k?
I got the 50 K by adding up the difference between 8 and 12% over the first 10 years of employment at our respective companies. It is just a wag probably low. But like I said we will have guys on 3rd year pay making 200+ an hour, that will even out the 8% vs 12% pretty quickly.
Not a pi$$ing contest, Your TA is probably a good one. Best of luck however you vote. Ours contract did not make anyone happy, but it is not as bad as some would let on.
07-01-2016 | 09:33 AM
#22
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No we are at 9% in 2020. Yes we are at 8% now. I use 9% just like I use 4200 when talking about you multiplier for retirement. It is what it will be eventually. The B Fund caps are not tied to the percentage in the contract. Otherwise you could negotiate a 100% B fund and cap it out at 260K. The B fund cap (at least when I talk about it) is the 54K (I think, 56 if over 50) limit on max contributions for 401K and B Plan limits. I am not sure what your contract allows for 401K contributions so I can't answer what your real B fund cap is. I do know that B fund contributions don't stop when you hit 260K of income but when you hit the IRS limit.
I got the 50 K by adding up the difference between 8 and 12% over the first 10 years of employment at our respective companies. It is just a wag probably low. But like I said we will have guys on 3rd year pay making 200+ an hour, that will even out the 8% vs 12% pretty quickly.
Not a pi$$ing contest, Your TA is probably a good one. Best of luck however you vote. Ours contract did not make anyone happy, but it is not as bad as some would let on.
I got the 50 K by adding up the difference between 8 and 12% over the first 10 years of employment at our respective companies. It is just a wag probably low. But like I said we will have guys on 3rd year pay making 200+ an hour, that will even out the 8% vs 12% pretty quickly.
Not a pi$$ing contest, Your TA is probably a good one. Best of luck however you vote. Ours contract did not make anyone happy, but it is not as bad as some would let on.
But, I do think our current 8% stops completely when you hit (this year) $265,000 in income. Any income earned over that IRS cap gives us zero B fund benefit. That's why cash (vice B fund contribution) over this cap is a feature both UPS and FedEx miss in their contracts.
If you'll recall the NC put out a primer on this shortly after the CBA came into force. They explained the "safe" level of after tax 401(k) contributions so you wouldn't hit the $54k cap ($53k?...going off of memory here). They took B fund 8% x $265,000 added in your $18k Max 401(k) contribution added in the DSA over 686 payout and showed the max after tax 401(k) you could safely stash away was 5%. Over that 5% level you would have to figure out if you were going to get DSA over 686 to see if you could increase your after tax amount. This is a quick and dirty explanation without looking back at that product. Perhaps someone who isn't on their iPhone could find that and post the accurate info?
Remember the $265,000 IRS limit and $54,000 IRS limits are two different things, but related in retirement planning.
07-01-2016 | 09:49 AM
#23
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Joined: May 2005
Posts: 1,286
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Meh, still not industry leading pay...
No slight to our UPS brothers, at all, but I would still take our retirement over their new one even. It's an improvement to theirs, but I still think it falls short of ours. But that's just my opinion at first glance, without taking too deep of a look at it. I could be wrong.
Sluggo,
Without getting too detailed the A-plan has two formulas, one is 1% multiplied by number of years served (max 30 years) of Final Average Earnings, the other is a flat dollar amount multiplied by years served (max 30 years) , this flat dollar amount was increased in this T/A. So if you worked for 30 years, you'd take 30% of your final yearly paycheck and that's your yearly payout, or you can calculate the flat $ amount of $4000 (Capt) x 30. Whichever one is higher is your A-plan yearly payout. Personally my B-plan plus 401 is where the big bucks are, and that's my money, that no bankruptcy can take away from me or my HEIRS, the A-plan is great, the B-PLAN lets me sleep at night
Without getting too detailed the A-plan has two formulas, one is 1% multiplied by number of years served (max 30 years) of Final Average Earnings, the other is a flat dollar amount multiplied by years served (max 30 years) , this flat dollar amount was increased in this T/A. So if you worked for 30 years, you'd take 30% of your final yearly paycheck and that's your yearly payout, or you can calculate the flat $ amount of $4000 (Capt) x 30. Whichever one is higher is your A-plan yearly payout. Personally my B-plan plus 401 is where the big bucks are, and that's my money, that no bankruptcy can take away from me or my HEIRS, the A-plan is great, the B-PLAN lets me sleep at night
07-01-2016 | 09:56 AM
#24
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Joined: Nov 2006
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From: 767 FO
I'll never bet my paycheck as I'm never 100% certain of anything!
But, I do think our current 8% stops completely when you hit (this year) $265,000 in income. Any income earned over that IRS cap gives us zero B fund benefit. That's why cash (vice B fund contribution) over this cap is a feature both UPS and FedEx miss in their contracts.
If you'll recall the NC put out a primer on this shortly after the CBA came into force. They explained the "safe" level of after tax 401(k) contributions so you wouldn't hit the $54k cap ($53k?...going off of memory here). They took B fund 8% x $265,000 added in your $18k Max 401(k) contribution added in the DSA over 686 payout and showed the max after tax 401(k) you could safely stash away was 5%. Over that 5% level you would have to figure out if you were going to get DSA over 686 to see if you could increase your after tax amount. This is a quick and dirty explanation without looking back at that product. Perhaps someone who isn't on their iPhone could find that and post the accurate info?
Remember the $265,000 IRS limit and $54,000 IRS limits are two different things, but related in retirement planning.
But, I do think our current 8% stops completely when you hit (this year) $265,000 in income. Any income earned over that IRS cap gives us zero B fund benefit. That's why cash (vice B fund contribution) over this cap is a feature both UPS and FedEx miss in their contracts.
If you'll recall the NC put out a primer on this shortly after the CBA came into force. They explained the "safe" level of after tax 401(k) contributions so you wouldn't hit the $54k cap ($53k?...going off of memory here). They took B fund 8% x $265,000 added in your $18k Max 401(k) contribution added in the DSA over 686 payout and showed the max after tax 401(k) you could safely stash away was 5%. Over that 5% level you would have to figure out if you were going to get DSA over 686 to see if you could increase your after tax amount. This is a quick and dirty explanation without looking back at that product. Perhaps someone who isn't on their iPhone could find that and post the accurate info?
Remember the $265,000 IRS limit and $54,000 IRS limits are two different things, but related in retirement planning.
I am sure tony will chime in with the manners of drill instructor to correct us.
07-01-2016 | 10:32 AM
#25
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Joined: Apr 2006
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From: MD-11 Captain
Does this mean the UPS MEC should be buying the FedEx pilots dinner?
In all seriousness, it's good for all of us when one of us gets an improved CBA. I'm glad they can finally go back to concerning themselves with other important issues!
Congrats!*?
MM
07-01-2016 | 10:42 AM
#26
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Joined: Aug 2006
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From: leaning to the left
No we are at 9% in 2020. Yes we are at 8% now. I use 9% just like I use 4200 when talking about you multiplier for retirement. It is what it will be eventually. The B Fund caps are not tied to the percentage in the contract. Otherwise you could negotiate a 100% B fund and cap it out at 260K. The B fund cap (at least when I talk about it) is the 54K (I think, 56 if over 50) limit on max contributions for 401K and B Plan limits. I am not sure what your contract allows for 401K contributions so I can't answer what your real B fund cap is. I do know that B fund contributions don't stop when you hit 260K of income but when you hit the IRS limit.
I got the 50 K by adding up the difference between 8 and 12% over the first 10 years of employment at our respective companies. It is just a wag probably low. But like I said we will have guys on 3rd year pay making 200+ an hour, that will even out the 8% vs 12% pretty quickly.
Not a pi$$ing contest, Your TA is probably a good one. Best of luck however you vote. Ours contract did not make anyone happy, but it is not as bad as some would let on.
I got the 50 K by adding up the difference between 8 and 12% over the first 10 years of employment at our respective companies. It is just a wag probably low. But like I said we will have guys on 3rd year pay making 200+ an hour, that will even out the 8% vs 12% pretty quickly.
Not a pi$$ing contest, Your TA is probably a good one. Best of luck however you vote. Ours contract did not make anyone happy, but it is not as bad as some would let on.
The defined contribution limit is $53,000 in 2016. So, the only way to reach that limit , with just B plan contributions, would be to have a 20% B plan.
The defined contribution limit, $53,000, includes B plan, RSP, after tax, company match and sick bank overage contributions.
If you're 50, you get an additional $6,000 to the limit.
07-01-2016 | 10:52 AM
#27
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Joined: Mar 2016
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Meh, still not industry leading pay...
No slight to our UPS brothers, at all, but I would still take our retirement over their new one even. It's an improvement to theirs, but I still think it falls short of ours. But that's just my opinion at first glance, without taking too deep of a look at it. I could be wrong.
No slight to our UPS brothers, at all, but I would still take our retirement over their new one even. It's an improvement to theirs, but I still think it falls short of ours. But that's just my opinion at first glance, without taking too deep of a look at it. I could be wrong.
From thier new TA
F. Benefit Security
The Association has expressed its their desires to continue to tie the security of their crewmembers’ defined benefit pension to that of UPS managers and supervisors. To that end, the Company agrees that the UPS Retirement Plan to will continue to provide the retirement benefits provided for under Article 15D. The Company further agrees that to the extent the Company continues to provide a defined benefit pension to the population of UPS managers and supervisors that is currently eligible to participate in the UPS Retirement Plan, it will do so through the UPS Retirement Plan.
07-01-2016 | 10:59 AM
#28
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Joined: Nov 2006
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From: 767 FO
Seriously? You don't know that our 8% B fund contributions stop when you reach $265K?
The defined contribution limit is $53,000 in 2016. So, the only way to reach that limit , with just B plan contributions, would be to have a 20% B plan.
The defined contribution limit, $53,000, includes B plan, RSP, after tax, company match and sick bank overage contributions.
If you're 50, you get an additional $6,000 to the limit.
The defined contribution limit is $53,000 in 2016. So, the only way to reach that limit , with just B plan contributions, would be to have a 20% B plan.
The defined contribution limit, $53,000, includes B plan, RSP, after tax, company match and sick bank overage contributions.
If you're 50, you get an additional $6,000 to the limit.
Last edited by FDXLAG; 07-01-2016 at 11:09 AM.
07-01-2016 | 11:59 AM
#29
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Joined: Nov 2013
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