Airline Pilot Central Forums - Expect 50% pay cuts next week

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- - Expect 50% pay cuts next week (https://www.airlinepilotforums.com/united/128169-expect-50-pay-cuts-next-week.html)

Quote:

Originally Posted by horrido27 (Post 3000570)

Mods-

How the hell do you allow people to create a profile and then their first posts are an inflammatory thread?

Ya actually sent me an infraction last week because I told a Mar2020 join date thread starter (TinCup) that he was a tool and to **** off.
Then you banned me afterwards based on another thread?!

Now a 'new' Mar2020 join date poster starts a panic thread.
Do you, as Mods.. not have any responsibility for that?!

How about this-
Everyone who has an account on here has to also have their emails listed in their profiles?
There has GOT to be a way to prevent people from creating a profile at 10am, and then starting inflammatory threads or writing BS/lie posts.

FS, FP & FtC
Motch

PS) Remain Calm, this too shall pass

This forum is 100% dogsh1t for this reason^^^. anyone reading this thread that gets a spike in blood pressure/anxiety should immediately punch themselves in the crotch for falling for the banana in the tailpipe. To the OP:

Quote:

Originally Posted by ugleeual (Post 3000459)

I’m pretty sure if you are furloughed they expect the repay immediately...

no

if furloughed payments continue

Quote:

Originally Posted by SlickMachine (Post 3000662)

"We're not gonna fall for the banana in the tailpipe!"

Quote:

Originally Posted by ugleeual (Post 3000459)

I’m pretty sure if you are furloughed they expect the repay immediately...

You have 90 days to repay the loan after getting furloughed. If you don’t make the repayment, its treated as a redemption. You pay a 10% early withdrawal penalty and get a 1099 because it is treated as income.

From the loan page...
“When you leave your job indefinitely, your loan typically becomes due and payable. If you cannot repay the loan within the required time period, it is assessed as an early withdrawal subject to income tax and penalties. Contact Participant Services at 1-800-724-7526 immediately after leaving your job for instructions on paying off your retirement plan account’s outstanding balance. Representatives are available from 7:00 a.m. to 11:00 p.m. ET, Monday through Friday.”

The the word indefinitely in the first sentence seems critical to your answer and may be worth a call if your interested. You’ll still have to make the monthly payments though. And any money you have in there is going to be down a LOT at this point unless it was a money market acct or something. If you borrow it now you’ll likely be selling at a huge loss. I guess it depends on how bad you need cash. perhaps look at a refinance cash out option (rates are low) if you have the a home with equity before using your PRAP at this point. Good luck!

Quote:

Originally Posted by Yermom (Post 3000450)

Since this thread has touched on monetary issues, I have a questions about our PRAP. This is a hypothetical, worst-case scenario, so please understand I'm not running to the bank as I type this. Just wondering if it's even possible to tap into PRAP retirement savings? I understand all the penalties and implications of early withdrawal. I just don't know if the PRAP is different than a standard 401K, and if we do, or do not, have the ability to make early withdrawals. Thanks to anyone who responds.

Yermom

Quote:

Originally Posted by Yermom (Post 3000450)

If you are over 55, you can roll your PRAP (401k), into an IRA or some other qualified investment account. Once there, I believe the IRS has exemptions for pre-retirement disbursements without penalty. Also, as much as I dislike annuities, you could also roll the 401(k) into a variable annuity which could begin to pay out monthly.

Quote:

Originally Posted by SlickMachine (Post 3000662)

When they let little girls like Tin Cup (Big John) pretend to be airline pilots, this is what you get. Look at the wisdom....with 9 posts. She/he says they are experienced but spouts misinformation that any experienced airline pilot at major knows is absolute crap. I see her posts for what they are, meant to inflame and rile people.

Quote:

Originally Posted by Big John (Post 2999851)

Everyone,

With all the news and reduction in flying, emergency measures have to be taken. Cash burn is going to kill off the industry, and the government bailout will be too slow to save us if things remain status quo. United has 75-80 days of cash.

As such, I expect the following in the next few days:

1) Massive surplus reduction lines in the neighborhood of 40% of pilots

2) 50% pay cuts on top of those. You won’t get a vote.

3) Furlough announcement of 20-30% of all employees.

The break even on pilot furloughs is one year.

These measures are all preferable to a Chapter 11 Bankruptcy filing, but they might take it into CH11 anyhow so they can renegotiate all of our lucrative union contracts.

After 9/11, flying was halted for three days, and everyone besides SWA and AA was driven into Chapter 11. Management will ensure the survival of the corporation first, but once they have accomplished that they will also find a way to screw the employees.

The government will give us money this time, but not without the unions getting crushed in the process. They wouldn’t give us a $2.1B loan guarantee in 2004, which led to the dissolution of the pensions and another $1.5B in pilot givebacks, but they had no problem giving AIG a $120B bailout four years later.

They (AIG, Merrill Lynch, etc.) then gave themselves bonuses with government money. For the banks and Wall Street, no problem. Unions? Take a number.

Get ready. It’s coming.

Why would anyone agree to a 50 percent paycut? Why agree to any paycut? A contract's a contract. If the company files for banruptcy, fight with the judge from a higher starting point. Have you not learned anything? There is no pension to protect anymore. Talk about stupid. The company's going to do what it needs to do. It is what it is.

Quote:

Originally Posted by hockeypilot44 (Post 3000962)

Its eye watering isnt it? Never underestimate stupidity/fear. Mngmnt usually sells it on an emotional level and its uncanny how people fall for it over and over and......