Our plan still allows IRA rollovers into the plan. Did it last month.

I'm voting no primarly because this suspends my ability to fund the active HRA until the IRS determination letter. For someone that has kids, or goes through any medical event for the year, this program is huge.

I don't understand the need to rush this. Yes, the VEBA RHA is a problem because it can be overfunded and isn't a willable asset. That does need to change, but why are we rushing it. Do it right the first time, even if it takes a little longer.

100% Agree. I'm not 59 years old, I choose to invest more aggressively. But with this new LOA, I do not have a choice where those additional funds are directed.

SPOT ON!

In Unity...

I'm a no on this as well. Quick back of the napkin math says over 25 years the difference between the amount the company is not contributing to the PRAP and instead putting into the MBCBP will be over $700,000. The MBCBP is too conservatively invested for serious growth. I understand the reason for it and it certainly serves a purpose. But this is not the way.

It's a great deal for old farts like me as we can put it all to work at 59.5 by sweeping it in our PRAP but I'm a hard no because of the gives. Forcing me to use my money to fill the PRAP? Um why did we get 17/18% B/C fund when I'm still going to have to put my own max money into it? I'll lose the option of funding the RHA (tax free retirement money) for 2-3 years at least according to the Podcast. The 2024 AHRA money will not be swept in January either which means it's sitting in a money market for 2-3 years earning nothing. At least the RHA made 8.5% this year and is tax free when I pull it. The UPA that we voted in says the company will do it and they even came up with a plan for the people who feel they've overfunded it by maxing the amount of spill to $10k and then it's paid cash. So now they're catering to them even further? The same ones pushing to pad their retirement by 2 more years as WB CAs? Hard pass.

Whether it’s now or in a year or two, we will get the CBP as an option instead of the RHA. As I’m all for this as an option to dump money into pretax, I feel like we should be focusing on what we want to actually change. Top things for me:

1. Less conservative investment, perhaps 50/50 or even 60/40 stock/bond portfolio.
2. Cash over cap option.
3. No PRAP company limits.

Yeah. Didn't even consider the fact that you can roll over into the PRAP at 59.5. So fair that it's great for older people. But you're point on the B/C fund drives to heart of my point. Why have the company DC 17/18% yet we still need to contribute $23,500? No way.

Compleetely agree with the above. It'll be an uphill battle on number 1 though when we've already agreed to 30%. My gut says it'll have to be next contract. I just don't like gives in order to rush this thing in before it's IRS approved when DAL has an IRS approved one without the gives this LOA proposes.

The UPA spells out approximately 30% equities.

22-B-2-c-(1) Except as set forth in Section 22-B-2-c-(2), a Company appointed investment
fiduciary will target an equity allocation of thirty percent (30%)

I agree it's overly conservative but it's what we've agreed to. It's something to work on probably next contract.

Number 2 seems like it could be a negotiated option, but 1 & 3 seem like a pretty hard sell to get from the company.
The CBP has to stay in the black or else the company is on the hook, so I’m sure they see it as significant risk to invest it in anything but the most conservative vehicles.
As for the PRAP limit, the company thinks they are just complying with an IRS rule. I don’t read it the same as they do, but my tax expertise accrues from handing some docs to my CPA once a year and occasionally staying at a Holiday Inn Express. I have to accept that UAL might have some lawyers who understand this better than I do. I don’t really see what incentive they’d have to invent this problem.