Tumi LOA...?
 

I thought the people that were saying this LOA is like the Tumi TA were being quite dramatic. Now it's seeming more like that's the case. ALPA voted on this with no feedback, and opened voting on it before any information was even available. Now every day we're getting more and more information slowly put out, but it seems like this is being sold to us instead of the LOA selling itself. Every concern that is brought up, the answer for why we are doing this is essentially "the company says so". This was how things felt with the Tumi TA, that the company just handed it to us and said sign here. We are not even getting any fact team inputs on this. The last piece of this seems to be next week when a pre-recorded Q&A with prior selected questions will be posted. It looks like the sell job is in full force. I'm trying to find any personal angle where the benefits of this LOA will offset the negatives, but I'm struggling to find anything. I'd love for anyone to chime in with one part of this LOA that is positive for the majority of pilots.

The CON letter from the C33 guy had quite a few numbers on it showing why this is a bad deal for most people . The PRO letter was the equivalent of "trust me bro, we will make it better eventually". This is why I immediately voted NO.

If you're over 59 with a fully funded RHA and don't mind taking away retirement options from those coming behind you than this is your LOA!

I'd say if you're ~55 or older, this LOA is for you. 100% of the company's 17% contribution spilling into a tax deferred account??? Accessible within 4 years to roll into your PRAP or IRA to invest as you see fit??? Sheeeot. Meanwhile, you can still get the max into the PRAP (77.5K in 2025) with your 31K contribution. There is NO downside. The meager returns of the tax deferred CBP will still beat the PRAP cash with a 30% tax hit up front... at least for 3 or 4 years, then you can roll it out. I'm a yes please! But I don't think it will pass, not enough of us old dudes to get it over the line.

No downside? RHA gone for 2-3 years is a huge downside for many older pilots. You talk the 30% tax hit, RHA money is never taxed. So if you planned to fund your RHA when you were making max money at the end of your career based on a contract provision that's been in place since 2012, well you're hosed with no chance to recover.

so much for unity, but hey as long as you get yours right? this is what all the emails seem to say as well, to vote for what is only personally best for you

Guppie, why did you create a new account?

I'm in the under 50 group with a modest RHA so far and still love the idea of shoving as much as I can into a CBP for over a decade plus hitting 415c limit plus catchups in your 50s plus backdoor Roth IRA before rolling it over at 59.5. Doing the math on that it's an opportunity to stash an astonishing amount in a relatively short period. But I also don't think it will pass and understand it could use a few tweaks for many.

I've got a decade on you and I too want the CBP. Just not this LOA version. I just want the CBP we were sold on with our UPA. IOW a mirror of DAL. I'd prefer to wait on the right one, not the right now one. It was my understanding that this would be an option with somewhere to put the 17% spill as an alternative to the RHA. This LOA isn't that.

Hope you don't hurt your back pulling up that ladder.