Cash balance plan 3.0
05-20-2025 | 02:48 PM
#21
Line Holder
Joined: Apr 2018
Posts: 399
Likes: 49
because those who actually use it for medical reason will see the double tax advantage that the CPB doesn’t have. It would really depend on how much you Put in and if you can use it all.
05-20-2025 | 06:08 PM
#22
On Reserve
Joined: Mar 2024
Posts: 20
Likes: 11
So while you are correct that they will continue to fund the PRAP, perhaps a more appropriate wording on my part would have been to push to "back-fund" rather than backpay the MBCBP to what it would have been if they had actually opened the plan on a reasonable timeline.
05-20-2025 | 06:38 PM
#23
Line Holder
Joined: Apr 2018
Posts: 399
Likes: 49
One of the key benefits to the MBCBP is that the company absorbs more of the risk vice a standard 401k, meaning they are on the hook to pump cash into the fund in down year(s) to make the employee whole. This is what allows it to be categorized as a defined benefit plan vice DC and coexist with 401k. This is why it had to be negotiated for over and above the standard spill cash.
So while you are correct that they will continue to fund the PRAP, perhaps a more appropriate wording on my part would have been to push to "back-fund" rather than backpay the MBCBP to what it would have been if they had actually opened the plan on a reasonable timeline.
So while you are correct that they will continue to fund the PRAP, perhaps a more appropriate wording on my part would have been to push to "back-fund" rather than backpay the MBCBP to what it would have been if they had actually opened the plan on a reasonable timeline.
I do not see any type of “back fund” for two reasons:
1. The delay is not on the company at this point, it’s on getting the determination letter from the IRS.
2. It’s not like anyone has been shorted their 17% so in order to “back fund” they would have/want/need to calculate how much to remove from your RHA or collect back from PRAP cash payments. The second not ever gonna happen due to tax implications for prior years. In other words no way are they gonna say “our bad for the delay, let us double pay out the money “
05-21-2025 | 04:30 AM
#24
Bent over by buybacks
Joined: Feb 2017
Posts: 1,581
Likes: 564
Delta pilots never had and never wanted a VEBA.
05-21-2025 | 04:34 AM
#25
Bent over by buybacks
Joined: Feb 2017
Posts: 1,581
Likes: 564
05-21-2025 | 04:48 AM
#26
On Reserve
Joined: Dec 2005
Posts: 131
Likes: 8
From: CA
05-21-2025 | 07:15 AM
#27
On Reserve
Joined: Mar 2024
Posts: 20
Likes: 11
Ok .. I get what you are saying now.
I do not see any type of “back fund” for two reasons:
1. The delay is not on the company at this point, it’s on getting the determination letter from the IRS.
2. It’s not like anyone has been shorted their 17% so in order to “back fund” they would have/want/need to calculate how much to remove from your RHA or collect back from PRAP cash payments. The second not ever gonna happen due to tax implications for prior years. In other words no way are they gonna say “our bad for the delay, let us double pay out the money “
I do not see any type of “back fund” for two reasons:
1. The delay is not on the company at this point, it’s on getting the determination letter from the IRS.
2. It’s not like anyone has been shorted their 17% so in order to “back fund” they would have/want/need to calculate how much to remove from your RHA or collect back from PRAP cash payments. The second not ever gonna happen due to tax implications for prior years. In other words no way are they gonna say “our bad for the delay, let us double pay out the money “
My understanding is that they've done precisely nothing. Meanwhile our wonderful MEC decided to take it upon themselves to negotiate concessions to get this thing moving.
05-21-2025 | 10:25 AM
#28
Gets Weekends Off
Joined: Jan 2018
Posts: 2,826
Likes: 232
Ok .. I get what you are saying now.
I do not see any type of “back fund” for two reasons:
1. The delay is not on the company at this point, it’s on getting the determination letter from the IRS.
2. It’s not like anyone has been shorted their 17% so in order to “back fund” they would have/want/need to calculate how much to remove from your RHA or collect back from PRAP cash payments. The second not ever gonna happen due to tax implications for prior years. In other words no way are they gonna say “our bad for the delay, let us double pay out the money “
I do not see any type of “back fund” for two reasons:
1. The delay is not on the company at this point, it’s on getting the determination letter from the IRS.
2. It’s not like anyone has been shorted their 17% so in order to “back fund” they would have/want/need to calculate how much to remove from your RHA or collect back from PRAP cash payments. The second not ever gonna happen due to tax implications for prior years. In other words no way are they gonna say “our bad for the delay, let us double pay out the money “
05-22-2025 | 04:12 AM
#29
Line Holder
Joined: Mar 2005
Posts: 410
Likes: 3
That is the argument the pilot group has been having. Some don’t like that it isn’t part of your estate and want the program ended ASAP.
My view is that if my wife and I die with money in the account, that means we never had to spend a penny on medical care out of our own pocket. It’s nice to have a large account in the background that is triple tax free.
As I mentioned in a previous post, I’ve already used a sizable portion of the account as an active employee.
Hopefully a new MBCBP LOA doesn’t touch the VEBA as it’s set up now or I suspect it will fail - again.
05-22-2025 | 04:36 AM
#30
Line Holder
Joined: Feb 2017
Posts: 1,631
Likes: 80
That is the argument the pilot group has been having. Some don’t like that it isn’t part of your estate and want the program ended ASAP.
My view is that if my wife and I die with money in the account, that means we never had to spend a penny on medical care out of our own pocket. It’s nice to have a large account in the background that is triple tax free.
As I mentioned in a previous post, I’ve already used a sizable portion of the account as an active employee.
Hopefully a new MBCBP LOA doesn’t touch the VEBA as it’s set up now or I suspect it will fail - again.
My view is that if my wife and I die with money in the account, that means we never had to spend a penny on medical care out of our own pocket. It’s nice to have a large account in the background that is triple tax free.
As I mentioned in a previous post, I’ve already used a sizable portion of the account as an active employee.
Hopefully a new MBCBP LOA doesn’t touch the VEBA as it’s set up now or I suspect it will fail - again.
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