PRAP
11-22-2024 | 10:40 AM
#81
Gets Weekends Off
Joined: Sep 2006
Posts: 2,610
Likes: 6
From: Bus driver
1. it’s a mirror in composition of asset class and exposure.
2. LIRKX is the closest tracking ticker
3. Add yield plus return
4. since inception of our plan we are up over 13% within the plan.
5. Each pilot will have different notational returns within the trust due to different entry points. (Ex- a guy who started MBCBP deposits in March will have a different total return compared to someone who doesn’t start spilling until August.
11-22-2024 | 12:42 PM
#82
New Hire
Joined: Dec 2019
Posts: 7
Likes: 0
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.
11-22-2024 | 04:53 PM
#83
Gets Weekends Off
Joined: Mar 2018
Posts: 3,633
Likes: 209
If the Delta plan doesn’t have a similar provision to satiate the contingent benefit rule, I certainly would need a reason from ALPA as to why we need one before voting yes on this.
They should have lead with a comparison between to the two plans since we already know what is possible.
The LOA and the accompanying guide also do not delve deep enough into the administration of the plan. In-service withdrawals-how often? Portability—if you leave before age 59.5, the IRS allows you to roll a CBP into an IRA. Is that allowed here? Plan administrator? This is basic stuff.
They should have lead with a comparison between to the two plans since we already know what is possible.
The LOA and the accompanying guide also do not delve deep enough into the administration of the plan. In-service withdrawals-how often? Portability—if you leave before age 59.5, the IRS allows you to roll a CBP into an IRA. Is that allowed here? Plan administrator? This is basic stuff.
11-22-2024 | 06:36 PM
#84
Line Holder
Joined: Jul 2018
Posts: 532
Likes: 10
If the Delta plan doesn’t have a similar provision to satiate the contingent benefit rule, I certainly would need a reason from ALPA as to why we need one before voting yes on this.
They should have lead with a comparison between to the two plans since we already know what is possible.
The LOA and the accompanying guide also do not delve deep enough into the administration of the plan. In-service withdrawals-how often? Portability—if you leave before age 59.5, the IRS allows you to roll a CBP into an IRA. Is that allowed here? Plan administrator? This is basic stuff.
They should have lead with a comparison between to the two plans since we already know what is possible.
The LOA and the accompanying guide also do not delve deep enough into the administration of the plan. In-service withdrawals-how often? Portability—if you leave before age 59.5, the IRS allows you to roll a CBP into an IRA. Is that allowed here? Plan administrator? This is basic stuff.
11-22-2024 | 08:50 PM
#85
Line Holder
Joined: Jun 2019
Posts: 599
Likes: 46
The company is irrationally terrified the IRS will have a problem with the Delta Plan and said this is the best they could do. For some reason this got put before MEC and it passed to the pilot group.
11-23-2024 | 01:15 AM
#86
Gets Weekends Off
Joined: Jan 2016
Posts: 141
Likes: 0
If the Delta plan doesn’t have a similar provision to satiate the contingent benefit rule, I certainly would need a reason from ALPA as to why we need one before voting yes on this.
They should have lead with a comparison between to the two plans since we already know what is possible.
The LOA and the accompanying guide also do not delve deep enough into the administration of the plan. In-service withdrawals-how often? Portability—if you leave before age 59.5, the IRS allows you to roll a CBP into an IRA. Is that allowed here? Plan administrator? This is basic stuff.
They should have lead with a comparison between to the two plans since we already know what is possible.
The LOA and the accompanying guide also do not delve deep enough into the administration of the plan. In-service withdrawals-how often? Portability—if you leave before age 59.5, the IRS allows you to roll a CBP into an IRA. Is that allowed here? Plan administrator? This is basic stuff.
11-23-2024 | 06:36 AM
#87
Line Holder
Joined: Jun 2019
Posts: 599
Likes: 46
Go read the Contingent Benefit Rule at https://www.irs.gov/pub/irs-drop/rr-08-40.pdf. It prohibits the employer from incitivizing one retirement/benefit plan over another in a meaningful way. By limiting the amount of direct contribution in to the PRAP, the company is going beyond giving an incentive, and is forcing me to funnel more cash in to the PRAP. I am not smart enough to know why the company is actually doing this, but I am positive this isn't good for the pilot group.
Read LEC 33 Vice Chair update. Excellent summary of why this thing is a dud. Should never have got out of MEC.
11-23-2024 | 07:04 AM
#88
Gets Weekends Off
Joined: Mar 2018
Posts: 3,633
Likes: 209
Go read the Contingent Benefit Rule at https://www.irs.gov/pub/irs-drop/rr-08-40.pdf. It prohibits the employer from incitivizing one retirement/benefit plan over another in a meaningful way. By limiting the amount of direct contribution in to the PRAP, the company is going beyond giving an incentive, and is forcing me to funnel more cash in to the PRAP. I am not smart enough to know why the company is actually doing this, but I am positive this isn't good for the pilot group.
Seems like they have really missed the mark by not copying an industry precedent.
Last edited by ThumbsUp; 11-23-2024 at 07:18 AM.
11-23-2024 | 07:19 AM
#90
Gets Weekends Off
Joined: Mar 2018
Posts: 3,633
Likes: 209
https://www.alpa.org/ual/-/media/UAL...-loa-24-05.pdf
Last edited by ThumbsUp; 11-23-2024 at 07:42 AM.
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