How does retirement pay structure work. The APC synopsis is a little confusing. What is the actuall 401k match? Defined contribution?? Vesting requirements?

APC says;
401K:

January 1, 2022, 401K match is now 59% up to 80% of eligible compensation. Contributions above 20% will be matched with a one time 'true-up' the following February.

Increases to 60% in Jan 2023 and 1% per year through Jan 2026.

33% of all pay earned as part of the Flight & Duty Pay Program will be deposited into a pilot’s 401(k) as a non-discretionary contribution; participation is not optional.



401K Matching: Yes

What compensation is "eligible"?

Does this mean that if I contribute my max $30,500 annual contribution then NJ will contribut 60% ($18,300) plus 33% of my FDPP? what is a good average for FDPP one could expect to earn?

 

any answer to this question?

 

Netjets matches 61% of your 401k contribution. Depending on your contribution percentage, some of the match may not hit your account until February of the next year. 1/3 of FDP gets put into your 401k and does not count towards the personal contribution limits (probably $15,000 or $20,000/yr).

 

As illinipilot said, the current match is 61% (increases to 66% on 1/1/25, then 1% each year thereafter) of your elected contribution to your 401(k). If you contribute more than 20% of your paycheck, they will match up to 20% of your paycheck in real time. The remainder of the 61% match is deposited by in of February the following calendar year. I do not see anything about "80% of eligible compensation" in the contract.

For example - If you make $1000 per paycheck and contribute 50% to your 401(k), the company will deposit a $100 match into your 401(k) on the date of your paycheck. The remainder of the match, $205, will be deposited in February of the following year.

Yes, using your example, if you contribute $30,500 you will receive a match (possibly completed in February of the following year depending on your total income) of $18,605. Any FDP non-elective contribution is in addition to this $49,105.

Vesting is complete at 6 years of contribution.

There is no DC plan.

Regarding FDP, 33% of your FDP total is a non-elective contribution that will go straight into your 401k. If you reach $27,395 of FDP deposited into your 401(k) (total max $76,500 minus $49,105), the 33% will roll over into your paycheck. I have made several posts with a way to calculate a rough estimate of FDP based off some older data, feel free to find those posts to get an idea on what FDP might look like. There are way too many variables to throw out a number of what to expect for FDP, especially in your first year.

**These maximum numbers were based off age 50 or older 401(k) limits. If you are under 50, the numbers will be different.**