The CBP option seems too advantageous on the whole to let it push out to 2026 IMO. Mostly because most of us are probably trying to maximize those savings in the first place. For the sky is falling crowd, this puts you in conservative funds until the world's economies inevitably collapse at which point you can take that protected cash and push it into your PRAP to buy NVDA or dinars if that's your thing for $1 a pop.

 

Delta pilots have the choice of taking cash when they hit the IRS limits. Why didn't we get that choice?

 

It's rather disappointing that we negotiated to get an MBCBP equal or better than DL and instead it seems like we're getting forced into a PRAP contribution reduction. Looking like a no vote from me.

 

Where's it say that? What I see is 22-B-2:

"The Company shall establish a new market-based cash balance plan for Pilots (the “MBCBP”) that is acceptable to the Company and the Association, as soon as reasonably practicable after receiving a favorable determination letter ruling from the IRS, but no earlier than January 1, 2024."

Haven't decided how I'm voting yet, but we aren't contractually obligated to rush into anything.

 

This is an IRS rule that limits employees with both a 401k and CBP. A Delta guy would need to answer this for sure but I’m guessing any employee that falls into this category would be limited the same way. The final product will absolutely be better if we can swap spill into either account every year.

 

Thanks for pointing this out. Maybe it was one of the explainer briefs the retirement committee did during the road shows last year that put it out there.

 

Not in our UPA, no idea.

 

I have a conservative “safe” fund at Betterment with 35% stocks that has better returns then the RHA this year. It won’t be like that in the long term but this year everyone is a Wall Street genius.

 

The Delta CBP (MBCBP) had a 1 time opt out period in July of 23. Plan started October of 23. All new hires since inception of the plan are in the plan. Optionally currently does NOT exist. You are in or you were eligible to go out. We do not utilize a RHA. The company DC money hits the 401k first and once hitting 415c or 401a17 the “spill” goes to the MBCBP. For 2025 the company can contribute $59.5k (17% x $350k) and it’s up to the pilot to utilize the 402g contribution limit and/or 401A (after tax contribution) to get more dollars in. The 414 limits (catch up contributions) are still separate than any company contributions. Our 60/40 (equity/fixed income) allocation is up double digits so far this year on performance. We do allow in-service withdrawals once a year to those 59.5YO+ so those pilots can take the money and roll it into a qualified account (IRA or back into the 401K) and invest it themselves. Not getting involved in the UA stuff, but that’s the Delta plan for those asking.

 

I was told your fund mirrors the LIRIX. How is it up double digits YTD? The LIRIX is up 7% YTD. S&P is 25% since we are talking returns.