SWA Contract - How good is it?

[PCL_128]

What do you guys have at AirTran!

A 10.5% B-plan.

 

[Hose A. Jiminez]

A 10.5% B-plan.

Difference is we get to keep ours reguardless what happens to the company. I truly hope you still have yours at the end of your career, hard to tell these days.

 

[ROSWELL41]

Any more rumors on SkyWest flying RJ's for you guys?

 

[FatesPawn]

No 401k match is ever comparable to a B-plan. B-plans give you money without you having to contribute a dime of your own money. You only receive a 401k match if you contribute. There are also more restrictions on 401k contributions than B-plan contributions. B-plans are far superior to 401ks.

PCL,

Why are B-plans "far superior" to a matching 401k? - I mean, Besides the fact you have to contribute your own money to get the match (which is a very good idea in any case)

We have decent investing options (depending on your investing 'prowess' some might argue otherwise) and for those with more time on their hands to do more research we have a 50% Self directed brokerage option.

If your salary exceeds the $230,000 IRC limit you still get the company "match" even though it's beyond your own contribution. The extra money goes into a 401(a)(17) plan that, while non-qualified, has an S&P 500 option that IS essentially qualified (protected from creditors.)

If you exceed the $46,000 IRC limit, we have an "excess benefit" program that either pays you in cash or allows you essentially the same investing options as the 401(a)(17) plan.

These seemed to be the same provisions I remember from my UAL days? So, in all seriousness, why is a B-fund better?

-fate

 

[FatesPawn]

Hose,

B-funds get the same protections as a 401k. It's their money.

A-funds are the traditional pension.

-fate

 

[PCL_128]

Difference is we get to keep ours reguardless what happens to the company. I truly hope you still have yours at the end of your career, hard to tell these days.

There's no difference there. B-funds are in your own name and aren't at risk if the airline goes out of business or files bankruptcy. It's your money.

 

[PCL_128]

PCL,

Why are B-plans "far superior" to a matching 401k? - I mean, Besides the fact you have to contribute your own money to get the match

That is all the reason you should need. You shouldn't have to contribute a dime of your own income if you don't want to. That should just be icing on the cake, not your base retirement plan.

 

[momalley81]

That is all the reason you should need. You shouldn't have to contribute a dime of your own income if you don't want to. That should just be icing on the cake, not your base retirement plan.

In my AA 11% B-fund I had NO option where my money went.

At least in my SWA 401K I can control where my money goes.

B-fund's are nice but they are not "FAR SUPERIOR" to 401k's.

 

[PCL_128]

In my AA 11% B-fund I had NO option where my money went.

That's just a bad B-fund then. Most B-funds include many investment options and some even include self-directed brokerage accounts that allow you to invest in just about anything.

 

[BottomPlug]

... ... ...

 

[momalley81]

That's just a bad B-fund then. Most B-funds include many investment options and some even include self-directed brokerage accounts that allow you to invest in just about anything.

Exactly. My SWA 401k does. (It even has a self directed brokerage) My AA B-Fund does not.

But to say B-fund's are "FAR SUPERIOR" to 401k's is quite a bit misleading. All B-funds are not created equal.

However as a third year F/O, I would rather have 7.3% of $130,000 versus 10.5% of $65,000

 

[vixin]

However as a third year F/O, I would rather have 7.3% of $130,000 versus 10.5% of $65,000

Can you say? OUCH!

 

[momalley81]

Are there HCE vs NHCE rules for B-Funds?

Yes, there are HCE rules in place for B-funds.

B-Funds are far superior to 401K plans.

No they aren't. I have both. I should know.

BTW, why did you erase your snappy comment? Looked it up for yourself and realize you didn't know what you were talking about?

 

[PCL_128]

However as a third year F/O, I would rather have 7.3% of $130,000 versus 10.5% of $65,000

No argument there. But there's no reason why your wildly profitable company can't provide you a good B-fund so you don't have to contribute your own money to retirement if you choose not to.

 

[JoeMerchant]

No 401k match is ever comparable to a B-plan. B-plans give you money without you having to contribute a dime of your own money. You only receive a 401k match if you contribute. There are also more restrictions on 401k contributions than B-plan contributions. B-plans are far superior to 401ks.

I thought we don't compete with one another....You sure are worried about what SWA gets.....