ITEM 5: ALPA National Updates
5a: In light of the recent or impending loss of a large number of
pilots from ALPA, including those from US Airways, America West,
Skyway, Aloha, ATA, and Champion, ALPA faces a significant shortfall
in its operating budget from diminished dues revenues. The ALPA
Executive Council and Executive Board, at its recent meeting this
week, took action on two items that will help close the gap on this
funding shortfall.
The first initiative passed by the Council and the Board were the
adoption of two resolutions to change both the Constitution and By-
Laws and the Administrative Manual to allow 401(k) contributions to
be subject to ALPA dues for all ALPA pilots. Current policy exempts
401(k) contributions from dues if a 401(k) plan is the only form of
retirement plan available to a pilot group, such as here at PSA. If a
pilot group had access to a Defined Contribution or similar plan,
their 401(k) contributions would be subject to dues. With the
freezing or elimination of virtually all of these available plans at
those carriers, the pilots of those carriers find themselves paying
dues on 401(k) contributions while that plan is their sole remaining
retirement vehicle. In the interest of fairness and with
consideration of the fiscal shortfall, the Council and Board adopted
the proposed resolutions to subject all 401(k) contributions to ALPA
dues. This change will not take effect until it is approved by a 2/3
majority vote of the Board of Directors.
The second initiative passed by the Council and the Board was the
adoption of a resolution to change the way LEC surpluses are handled
by the Association. Currently, LEC budgets are funded from the
Administrative and Support (A&S) account based on a per capita rate
for each pilot in that domicile, with any LEC budget surpluses at the
end of the year being credited to that airline's MEC account for use
in the future. The resolution adopted by the Council and Board will
change policy to direct any LEC budget surpluses back to the A&S
account at the end of each year. This change will help close the
shortfall in A&S account funding and preserve the services available
to pilots, LEC's, and MEC's from the Association.
5a: In light of the recent or impending loss of a large number of
pilots from ALPA, including those from US Airways, America West,
Skyway, Aloha, ATA, and Champion, ALPA faces a significant shortfall
in its operating budget from diminished dues revenues. The ALPA
Executive Council and Executive Board, at its recent meeting this
week, took action on two items that will help close the gap on this
funding shortfall.
The first initiative passed by the Council and the Board were the
adoption of two resolutions to change both the Constitution and By-
Laws and the Administrative Manual to allow 401(k) contributions to
be subject to ALPA dues for all ALPA pilots. Current policy exempts
401(k) contributions from dues if a 401(k) plan is the only form of
retirement plan available to a pilot group, such as here at PSA. If a
pilot group had access to a Defined Contribution or similar plan,
their 401(k) contributions would be subject to dues. With the
freezing or elimination of virtually all of these available plans at
those carriers, the pilots of those carriers find themselves paying
dues on 401(k) contributions while that plan is their sole remaining
retirement vehicle. In the interest of fairness and with
consideration of the fiscal shortfall, the Council and Board adopted
the proposed resolutions to subject all 401(k) contributions to ALPA
dues. This change will not take effect until it is approved by a 2/3
majority vote of the Board of Directors.
The second initiative passed by the Council and the Board was the
adoption of a resolution to change the way LEC surpluses are handled
by the Association. Currently, LEC budgets are funded from the
Administrative and Support (A&S) account based on a per capita rate
for each pilot in that domicile, with any LEC budget surpluses at the
end of the year being credited to that airline's MEC account for use
in the future. The resolution adopted by the Council and Board will
change policy to direct any LEC budget surpluses back to the A&S
account at the end of each year. This change will help close the
shortfall in A&S account funding and preserve the services available
to pilots, LEC's, and MEC's from the Association.
