Loa 24-05 mbcbp poll
 

How is everyone feeling about this thing.

company shouldn’t be capped on 401k contributions. If pay x 18% fills out the 401k then it should do that without employee contribution. Unless I’m looking at this wrong it requires the employee to contribute. That seems like a concession to me.

You're looking at it correct. This will permanently change our contract so that everyone will have to put in personal max in order to maximize your yearly PRAP and everything after $275kish will go into the CBP with only 30% equity exposure until you're 59.5.

For the record I already voted NO.
I agree with you, but $350,000 of an employee's income that can be considered for salary deferral into a qualified retirement plan, like a 401(k).

and 18% is only $63,000. Not $70,000.

I m like learning this all in the past 3 days but I believe the law about only the first $350 K being what that 17% soon to be 18% can be based on is an IRS thing not a Company thing.

I recommend reading the Con letter that came in email from MEC yesterday.

No matter what you won't tax protect all 18% in your 401k if you're making CA pay, top widebody FO pay or I/E pay once you hit the max compensation limit of about $345k. If you can push that to CBP you avoid upfront taxes on it and for many of us, you eventually pax taxes in retirement after it's had a chance to be invested (59.5) and you're likely in a lower tax bracket. If RHA is your thing great. If not PRAP cash is great except you're getting slammed with your marginal tax rate. But do recognize that the latter parts of your 17%, soon 18% are not going to be going into your 401k once over that comp limit.

If you have to contribute it is a concession. The current contract Prap is great!

First of all.. voting no.

Second your lack of knowledge is showing.

The current contract and PRAP contributions already require you to contribute in order to max it out due to IRS income limits... soooooo the by your logic the current contract is a concesssion.

There is no way to hit the 415c limit without individual contributions... fact. The LOA just makes it so the amount of individual contributions to get there is higher.

Then go lobby your congressman to raise the income limit for 401ks because even without this LOA, you wll never max your PRAP based soley on the company contribtuons due to the IRS income limts of 350,000 (for 2025).

Now that being said the LOA increases that amount you would have to put in which affects a large portion of the pilot group which is why its not a good deal.

everyonce in awhile someone gets it. Clear concise facts. Thank you. Well said

With the next UPA if we get 19-20% DC we will basically max the 401k with company contributions alone. However, if we vote in this LOA cap, then that will never happen, and you'll be stuck with 30% of your company contributions in a bonds account.