ALPA DISCOURAGES RETIREMENT SAVING TOUTS AS RATE CUT
Herndon, October 18 -The 44th Board of Directors meeting of the Air Line Pilots Association, Intl closed today. Of note was the presentation of Agenda Item #17 to eliminate the exemption from dues of pilot wage deferrals into 401(k) or Canadian RRSP plans (the exemption currently applies if such a plan is the only pension plan within a given pilot group). The original proposal as approved by the Executive Board and subject to approval by a 2/3 vote of the Board of Directors, was to eliminate the exemption effective January 1, 2014.
Flying in the face of ALPAs long held beliefs, representatives of several of the largest carriers voted overwhelmingly to stick it to their weakest, lowest compensated brothers; while securing a rate cut for themselves. One representative, speaking under condition of anonymity, stated: Sure some of these pilots only make $26K per year, so what? When youre only making 26 grand, how much extra are you really paying? Beside, do you know how much they save by sleeping in their cars in the employee lot? Its about time these free-loaders pay their fair share! Now if youll excuse me, I need to go hit the links.
A spokesman for the bargaining unit noted that ALPA was pleased to do their part to lower these parking lot dwellers tax burden by raising their dues. Yes, it is going to cost them slightly more to contribute to their 401(k), but by eliminating this exemption we are raising the itemized deductions our members enjoy. After all, the name of the game when it comes to 401(k) is tax savings, right? When asked if he expected any pushback from the members of these smaller carriers, he replied: What can they do about it? Theyre lucky we allow them here in the first place; but no, I dont expect to hear any complaints from the kiddie table. Its a moot point anyway. We are going to headline it as a dues rate cut. Nobody reads the past the headline. If they still dont like it, they can stop contributing to their 401(k), or get themselves a B plan.
Herndon, October 18 -The 44th Board of Directors meeting of the Air Line Pilots Association, Intl closed today. Of note was the presentation of Agenda Item #17 to eliminate the exemption from dues of pilot wage deferrals into 401(k) or Canadian RRSP plans (the exemption currently applies if such a plan is the only pension plan within a given pilot group). The original proposal as approved by the Executive Board and subject to approval by a 2/3 vote of the Board of Directors, was to eliminate the exemption effective January 1, 2014.
Flying in the face of ALPAs long held beliefs, representatives of several of the largest carriers voted overwhelmingly to stick it to their weakest, lowest compensated brothers; while securing a rate cut for themselves. One representative, speaking under condition of anonymity, stated: Sure some of these pilots only make $26K per year, so what? When youre only making 26 grand, how much extra are you really paying? Beside, do you know how much they save by sleeping in their cars in the employee lot? Its about time these free-loaders pay their fair share! Now if youll excuse me, I need to go hit the links.
A spokesman for the bargaining unit noted that ALPA was pleased to do their part to lower these parking lot dwellers tax burden by raising their dues. Yes, it is going to cost them slightly more to contribute to their 401(k), but by eliminating this exemption we are raising the itemized deductions our members enjoy. After all, the name of the game when it comes to 401(k) is tax savings, right? When asked if he expected any pushback from the members of these smaller carriers, he replied: What can they do about it? Theyre lucky we allow them here in the first place; but no, I dont expect to hear any complaints from the kiddie table. Its a moot point anyway. We are going to headline it as a dues rate cut. Nobody reads the past the headline. If they still dont like it, they can stop contributing to their 401(k), or get themselves a B plan.