Ok, so is it not limited up to a certain amount? There has to be a limit. 9.3 vs. 10.5 at the limit is the same.
No, there's no limit.
It's not a 401(k) plan. It's a DEFINED CONTRIBUTION plan.
The old-style traditional "pensions" at a Legacy carrier were Defined BENEFIT plans. The company contributed a certain amount every pay period into a general fund that was invested by THE COMPANY in different mutual funds, bonds, stocks, whatever. The COMPANY owned the fund. The problem came when the stock market BOOMED in the late 90's and management took all the extra "profits" and cashed them out into management bonuses. When the stock market later collapsed, there wasn't enough cash left to pay the defined "benefits" to the employees already retired, and the DB fund was declared insolvent and turned over to the PBGC for pennies on the dollar to payouts (which is why my dad to this day still gets $3,300 a month when he was supposed to get over $10k a month in retirement).
Seeing the problem in that, the National Pilot's Association back in 2000 negotiated a Defined CONTRIBUTION fund. This fund isn't EVER contributed into by a pilot. It's strictly contributed by THE COMPANY every paycheck (so it's all post-tax dollars the company already paid taxes on for us) into a self-directed investment fund. WE own our own individual fund once we're fully vested (4 year cliff vesting). WE control which stocks, bonds, and mutual funds it gets invested in (that are inside the plan at any rate, that's a whole different argument and if you hear us use the name Steve Restifo, this is what it's referencing).
We also have a 401(k) that doesn't presently have a match but will if this integration takes more than 2 years (doubtful), and IT has the IRS contribution limits you're thinking of.
Hope that helps explain it better. The 10.5% B-fund is something we don't have to contribute a dime and get automatically with no cap. Your profit sharing, from my understanding of the payouts has, over the last 10 years, paid more than our F/O's would make in B-fund under our new contract, but not more than what our CA's make in B-fund.
That and our ability to specify "call-first / call-last" on reserve (you may have that, not sure) and guaranteed 125% or 150% premium pay for ALL trip pick ups inside 48 hours would be about the only major things in our contract that I'd like to see retained. A lot of the things in our new contract that are good protection provisions seem to be unneeded at Southwest with the way your company does business. The rest of it, yeah, your contract wins hands-down.
