Retirement and Commuter Policy
11-27-2013, 09:45 AM
#1
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Thread Starter
Joined APC: Nov 2010
Posts: 118
Retirement and Commuter Policy
Prospective pilot here. Looking at the new contract it appears the only option for retirement is the DC plan. Am I right to assume the company will contribute 16% of your Gross Earnings for every pay period into the 401K? Is there any requirement for employee contribution? Just curious what pilots are doing for retirement going forward. Also looking at the commuter policy, it appears that if you don't make your second flight, you can call crew sked and be taken off the trip or reserve with no jeopardy, just want to make sure I have that correct too. Lastly, are you commuters able to combine trips or reserve for larger blocks of time off? Thanks for your help everybody!
11-27-2013, 10:17 AM
#2
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Joined APC: Nov 2013
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Posts: 1,168
Originally Posted by bigmacdaddy
Prospective pilot here. Looking at the new contract it appears the only option for retirement is the DC plan. Am I right to assume the company will contribute 16% of your Gross Earnings for every pay period into the 401K? Is there any requirement for employee contribution? Just curious what pilots are doing for retirement going forward. Also looking at the commuter policy, it appears that if you don't make your second flight, you can call crew sked and be taken off the trip or reserve with no jeopardy, just want to make sure I have that correct too. Lastly, are you commuters able to combine trips or reserve for larger blocks of time off? Thanks for your help everybody!
Read the book "Millionaire Next Door". Best book ever. I"m in my 40s and I can stop working if I wanted because I've saved.
Lots of pilots own rental houses, some have military retirements, others have businesses or have just saved money over the years.
If you can't make the 2nd commute flight just call the crew desk. You will be removed without pay, but they won't hassle you. I've only had it happen once in 13 years of commuting and they were very cool about it.
Most commuters either bid 4 day trips, or put trips back to back (i.e. 2 trips that are 2 days each). With PBS you can select options that help you maximize blocks of days off for commuting.
Hope that helps.
11-27-2013, 10:26 AM
#3
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Joined APC: Aug 2008
Position: UAL FO
Posts: 122
401K: you re correct, no employee contribution required to get the company's 16%.
Commuter policy: correct also, no jeopardy just loss of pay for that res day or trip
As far as combining trips.. Depends on your seniority.. I ve seen
756 lines with 2 or 3 trips in a row followed by 10 or so days off.
Commuter policy: correct also, no jeopardy just loss of pay for that res day or trip
As far as combining trips.. Depends on your seniority.. I ve seen
756 lines with 2 or 3 trips in a row followed by 10 or so days off.
11-27-2013, 10:32 AM
#4
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Joined APC: May 2009
Position: The GF of FUPM
Posts: 3,073
16% is correct. Your contribution optional. Brain scan mandatory if you elect to skip it, unless you can prove a giant pile of funds elsewhere, extraordinary need or sickly well heeled relatives.
Its probably the last good deal at UAL. Well...that and delicious and generous crew meals. Can you spell Barf? That's from the Blue perspective. I'm not sure how the CAL guys feel. Yo Black... Bark!
Prudent commuter policy is still in effect as far as I know. I don't spend as much time scrutinizing the FOM as I used to thanks to the wonderful treatment I've received as an employee of the big tulip....er...hairnet. Just remember this - no matter what's in the book, if you commute and have issues making a trip, you'll have issues with the crew desk and the CP. I don't care what the book says, experience and the experience of MANY others dictates otherwise. Jump through all the hoops, dot all the i's, get your prudence on....and still get in more than lukewarm water. The lines are thin, so squint. Glad to hear others have had better luck, but I am one leery pastel psycho.
Of course there is a silver bullet. But, you'll steep for that too.
Its probably the last good deal at UAL. Well...that and delicious and generous crew meals. Can you spell Barf? That's from the Blue perspective. I'm not sure how the CAL guys feel. Yo Black... Bark!
Prudent commuter policy is still in effect as far as I know. I don't spend as much time scrutinizing the FOM as I used to thanks to the wonderful treatment I've received as an employee of the big tulip....er...hairnet. Just remember this - no matter what's in the book, if you commute and have issues making a trip, you'll have issues with the crew desk and the CP. I don't care what the book says, experience and the experience of MANY others dictates otherwise. Jump through all the hoops, dot all the i's, get your prudence on....and still get in more than lukewarm water. The lines are thin, so squint. Glad to hear others have had better luck, but I am one leery pastel psycho.
Of course there is a silver bullet. But, you'll steep for that too.
Last edited by oldmako; 11-27-2013 at 10:50 AM.
11-27-2013, 10:35 AM
#5
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Joined APC: Oct 2010
Posts: 2,639
Note that the commuter policy requires one to contact crew scheduling after the first missed flight. It's not explicitly stated, but if they want you for the the trip they will place you positive space on the next UA flight at their option. If it's not a big deal to them (i.e. there is plenty of coverage) and you miss the second flight it's no-harm, no-foul. The downside to the pilot is the potential loss of pay for the trip.
Ditto everything pilot64golfer said about maximizing retirement contributions.
Ditto everything pilot64golfer said about maximizing retirement contributions.
11-27-2013, 11:30 AM
#6
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Joined APC: Feb 2011
Posts: 3,866
Originally Posted by pilot64golfer
If you exceed the IRS limits (Its close to $50k) then you get it paid out as income and taxed.
The actual max B Plan contribution is $40,800 which is $255,000 x 16% ($255,000 is the IRS limit for compensation eligible for qualified plans). There is a myth that the max 401(k) limit is $17,500 but that too needs context. $17,500 is the max tax deferred/Roth 401(k) combined contribution (for someone less than age 50, add $5,500 to someone over age 50). The actual contribution could greatly exceed $17,500 because one is permitted to make after-tax contributions up to the $51,000 limit which also includes B Plan contributions. ($56,500 if over age 50). Here is a suggested strategy: For one who does not want large spillovers from the B Plan into the RHA VEBA, 1) estimate what your B Plan contribution will be for the year, 2) Subtract that from your $51,000 (or $56,500) limit, 3) giving yourself some wiggle room (because you can adjust your 401(k) contribution anytime), fund your 401(k) with what you came up with in step 2. If you want to max out RHA VEBA accumulations: 1) max out your 401(k) contributions, both tax deferred/roth and after-tax early in the year causing max spillover from the B Plan.
Last edited by APC225; 11-27-2013 at 12:05 PM.
11-27-2013, 01:13 PM
#7
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Joined APC: Aug 2010
Posts: 66
Originally Posted by pilot64golfer
For every $1 you earn they put in 16 cents. There is no requirement for you to do anything. However, you can put up to $17,500 ($22,500 if you are 55 or older) in per year yourself and not pay taxes on that. I've done it every year since 2000 and its the smartest thing I have ever done. If you exceed the IRS limits (Its close to $50k) then you get it paid out as income and taxed.
Read the book "Millionaire Next Door". Best book ever. I"m in my 40s and I can stop working if I wanted because I've saved.
Lots of pilots own rental houses, some have military retirements, others have businesses or have just saved money over the years.
If you can't make the 2nd commute flight just call the crew desk. You will be removed without pay, but they won't hassle you. I've only had it happen once in 13 years of commuting and they were very cool about it.
Most commuters either bid 4 day trips, or put trips back to back (i.e. 2 trips that are 2 days each). With PBS you can select options that help you maximize blocks of days off for commuting.
Hope that helps.
Read the book "Millionaire Next Door". Best book ever. I"m in my 40s and I can stop working if I wanted because I've saved.
Lots of pilots own rental houses, some have military retirements, others have businesses or have just saved money over the years.
If you can't make the 2nd commute flight just call the crew desk. You will be removed without pay, but they won't hassle you. I've only had it happen once in 13 years of commuting and they were very cool about it.
Most commuters either bid 4 day trips, or put trips back to back (i.e. 2 trips that are 2 days each). With PBS you can select options that help you maximize blocks of days off for commuting.
Hope that helps.
Thanks... But the "catch up". Starts at age 50 and is $5500 above the 17500 for a total of 23 for those of us over 50
11-27-2013, 02:31 PM
#8
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Joined APC: Nov 2013
Position: Gets weekends off
Posts: 1,168
Originally Posted by Bluesky1
Thanks... But the "catch up". Starts at age 50 and is $5500 above the 17500 for a total of 23 for those of us over 50
11-27-2013, 02:57 PM
#9
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Joined APC: Jun 2010
Position: 747 Captain, retired
Posts: 928
Originally Posted by bigmacdaddy
Prospective pilot here. Looking at the new contract it appears the only option for retirement is the DC plan. Am I right to assume the company will contribute 16% of your Gross Earnings for every pay period into the 401K? Is there any requirement for employee contribution? Just curious what pilots are doing for retirement going forward. Also looking at the commuter policy, it appears that if you don't make your second flight, you can call crew sked and be taken off the trip or reserve with no jeopardy, just want to make sure I have that correct too. Lastly, are you commuters able to combine trips or reserve for larger blocks of time off? Thanks for your help everybody!
11-27-2013, 03:25 PM
#10
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Joined APC: Nov 2013
Position: Gets weekends off
Posts: 1,168
Originally Posted by krudawg
I also want to mention that 16% is negotiated every contract. It was not too long ago we were at 11% and even dropped down to 1% during our glorious ESOP years of the roaring 90's.
