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05-10-2021, 01:27 PM
#191
Gets Weekends Off
Joined APC: Jan 2016
Position: Left
Posts: 1,189
Originally Posted by RJSAviator76
Flying with plenty of senior dudes who would use their PS excess as a paycheck while they'd max out their individual 401k contribution by the end of 1st quarter, and then they'd be maxing out their Top Hat right to 50k limit. Makes sense... but having lost my A-plan in a bankruptcy and being entitled to a whopping $200-something bucks a month when I retire, I'm not sure how much I'd trust Top Hat.
05-10-2021, 02:41 PM
#192
At your mom's house
Joined APC: Jun 2008
Position: cpt 737
Posts: 2,665
Top hat is ok for those in the last few yrs with a good outlook that the company won't go under.
not a great deal for those who have 30 yrs left.
I'm all for profit sharing going into retirement. My third yr I got some back as cash. Most FO on 4th yr pay will max out their 401k and get some back.
I would, however, fully support the right to choose if we could swing it.
not a great deal for those who have 30 yrs left.
I'm all for profit sharing going into retirement. My third yr I got some back as cash. Most FO on 4th yr pay will max out their 401k and get some back.
I would, however, fully support the right to choose if we could swing it.
05-11-2021, 10:03 AM
#193
Gets Weekends Off
Joined APC: Mar 2015
Posts: 1,110
Originally Posted by RJSAviator76
Good question, but better directed at the IRS.
05-11-2021, 10:38 AM
#195
Gets Weekend Reserve
Thread Starter
Joined APC: Jul 2007
Posts: 3,617
Originally Posted by Profane Kahuna
Are you saying the IRS has a rule that says all airline pilots get a choice where their money goes, EXCEPT those pilots at Southwest Airlines?
https://www.swapa.org/news/article/o...nd-calculation
05-11-2021, 10:49 AM
#196
Gets Weekends Off
Joined APC: Nov 2012
Posts: 2,030
If it’s given in cash it’s all yours immediately, as it is now it’s vested over five years at 20%. Not that it would keep someone from leaving within their first couple years to go to another carrier.
That goes for PS and NEC.
That goes for PS and NEC.
05-11-2021, 10:55 AM
#197
Gets Weekends Off
Joined APC: Mar 2015
Posts: 1,110
Originally Posted by RJSAviator76
Pretty much. At every other airline, profit sharing is a cash bonus. At Southwest Airlines, it is a qualified retirement plan.
Delta has the choice and they even have a way to avoid taxes with their excess cash over $55k per year if they put it into their “Market Based Cash Balance Plan”.
American hasn’t turned a profit in so long nobody remembers how it works.
So I’m pretty sure it can be done, and the blame for why it isn’t done at SWA does not lie on the IRS boogeyman.
05-11-2021, 11:52 AM
#198
Gets Weekend Reserve
Thread Starter
Joined APC: Jul 2007
Posts: 3,617
Originally Posted by Profane Kahuna
United has the choice of cash or qualified retirement plan (tax deferred).
Delta has the choice and they even have a way to avoid taxes with their excess cash over $55k per year if they put it into their “Market Based Cash Balance Plan”.
American hasn’t turned a profit in so long nobody remembers how it works.
So I’m pretty sure it can be done, and the blame for why it isn’t done at SWA does not lie on the IRS boogeyman.
Delta has the choice and they even have a way to avoid taxes with their excess cash over $55k per year if they put it into their “Market Based Cash Balance Plan”.
American hasn’t turned a profit in so long nobody remembers how it works.
So I’m pretty sure it can be done, and the blame for why it isn’t done at SWA does not lie on the IRS boogeyman.
Delta has the similar scheme for profit sharing, and again, it's a cash bonus plan. They also get 16% NEC on top of their profit sharing.
Yes, ours can be changed, but it would require switching from a qualified retirement plan to a cash bonus plan. That's a contractual change and would involve the IRS.
SWAPA had a nice presentation about this. I actually wouldn't mind exploring the change.
05-11-2021, 12:22 PM
#199
Furloughed Again?!
Joined APC: Aug 2007
Position: Boeing 737
Posts: 4,796
I'm sure I'm missing something, but if you're exceeding the IRS max, the remainder spills back as cash anyway. So why do most of us even care? Is it worth expending negotiating capital on this?
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05-11-2021, 01:08 PM
#200
Gets Weekends Off
Joined APC: Nov 2012
Posts: 2,030
Originally Posted by ZapBrannigan;[url=[url
tel:3233445]3233445]I'm sure I'm missing something, but if you're exceeding the IRS max, the remainder spills back as cash anyway. So why do most of us even care? Is it worth expending negotiating capital on this?
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I don’t feel anything we pursue expends negotiating capital. We are so far behind other carriers in almost every aspect and the staffing challenges are already moving back into the forefront, especially with the furlough debacle, that no issue should be abandoned in favor of another. Every demand can be negotiated on its own merits and not compromised for other priorities.
As far as dispensing of funds, we all have different situations and should have flexibility in how we manage our benefits to meet our needs.
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