Southwest pilot talks proceed quietly

[FlyingSig]

That's all true, but like you said, the 401k limit is only $15,500. If you only had a 401k, then you'd max out your retirement contributions much quicker than with a B-plan.

Not quite.

The $15500 is an EMPLOYEE contribution limitation. If AirTran wanted to put $45K in your 401K, they could without any penalty to you.

$45K is the max of all the sources, $15.5 is your personal limit of sheltering your own cash.

Every airline has their own deal. At SWA, it's a matching plan...employees have to give to get. At Delta, we get 2% in our 401K no matter what, no employee contributions required.

 

[FlyingSig]

B-funds are always protected. The money is in your own account. It's not at all like an A-fund (what people usually call a "pension"). The B-fund money is out of the reach of management, the bankruptcy courts, or anyone else. Basically, a B-fund is a 401k without a required employee contribution and with higher limits for yearly contributions.

Almost, but not quite here too.

Employer contributions are allowed to be in company stock instead of cash. While it is in your name, should you not move that once you're vested (if your company does that) and your company goes bankrupt a.) the value of your DC tanks and b.) withdrawls and transfers will be limited until the bankruptcy is settle as to what the true value of your account is.

Perhaps some former Midway pilots can pipe in here but I believe their 401K's were frozen during their bankruptcy and they were not allowed to roll them over to their new employers until all the dust settled... Not a big deal if you're young but if the ch11/7 happens around retirement time you're hosed.... not to mention all the lost returns of not being able to reinvest the money elsewhere.

 

[BobbyB]

There's no reason for SWA pilots to be responsible for funding their own retirements when every other major has either an A-fund or a B-fund that requires no employee contributions.

I think the last thing we need to do is run SWA like "every other major." The B fund is a sweet deal, but the vast majority of pilots at SWA are extremely happy with our compensation IN CONJUNCTION with a company that continues to make money. Only 31-ish years of profitability, and we'd like to see lots more. You won't see a B plan in the new contract, and just about everybody will approve it.

 

[Sluggo_63]

Tell him what?

I'd tell him the same thing I'd tell the $400,000 SWA Captain...

...Go spend some time with your family

 

[IslandDriver]

Do you think thay will lower the new hire pay....to give management a bone?

 

[Babylon]

In correct.

Lets say you make 200k and put away 8% That will get you roughly 15500. Company matches appx 8% (SWA plan) of your salary. Thats another 15500. Profit share of 10%, thats another 20000.

Thats a total of 51K. 45k is the max this year so 6k will have additional tax.

A salary of 100k (2nd year pay) will get you about 33,500 if you max out.

True, we have to save some of our own money, but if you are not doing that anyway youre fool enough to end up broke one way or another.

I didnt understand it at first either. Hope this helps.

Hose what are you smoking? $100K for second year SWA pilot? I've got 5 guys in my squadron that are all 2-3 year pilots at SWA and none will make $100K this year (their words).

 

[vixin]

Hose what are you smoking? $100K for second year SWA pilot? I've got 5 guys in my squadron that are all 2-3 year pilots at SWA and none will make $100K this year (their words).

I did my second year without working that hard. Maybe the boys from your squadron are getting trips pulled for reserve duty.

 

[Reebo]

Hose what are you smoking? $100K for second year SWA pilot? I've got 5 guys in my squadron that are all 2-3 year pilots at SWA and none will make $100K this year (their words).

It's pretty easy to make 100K 2nd year.

2nd year pay is 77.45 per trip.

77.45 X 108 trips = 8365

8365 X 12 = 100,380

Averge line is around 95 trips.

With proper bidding you can get 110 trips on your vacation months.

EPT and recurrent training can also become high paying months.

Pick up one trip a month and you get your 100K

 

[ivauir]

I hope our ground breaking new contract shows what valued 'internal customers" the pilots at SWA are. But a "B" plan hasn't even come up. Hope for a better match, Pay and work rules. Hope.

 

[Hose A. Jiminez]

Hose what are you smoking? $100K for second year SWA pilot? I've got 5 guys in my squadron that are all 2-3 year pilots at SWA and none will make $100K this year (their words).

I went to college Babylon, but I havent smoked since. 100k is avg for second year. Not much variance. Probably 95 to 108.