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Know Your Benefits - April 12, 2011
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Know Your Benefits - April 12, 2011

What is the maximum amount that may be contributed each plan year in the Pilots' Money Purchase Pension Plan (PMPPP) or "B" fund? The plan year is from January 1 through December 31 for this plan. 

"Know Your Benefits" - April 12, 2011

What is the maximum amount that may be contributed each plan year in the Pilots' Money Purchase Pension Plan (PMPPP) or "B" fund? The plan year is from January 1 through December 31 for this plan.

Per the contract:

Section 28.C. Retirement - Pilots’ Money Purchase Pension Plan

2. Effective on the date of signing of this Agreement, the Company shall continue to contribute monthly for each pilot plan participant in the prior month an amount equal to 6.0% of that pilot’s eligible prior monthly earnings, subject to the Code Section 401(a) (17) compensation limit. Effective as of the first anniversary of the date of signing of this Agreement, the Company shall contribute monthly for each pilot plan participant in the prior month an amount equal to 7.0% of that pilot's eligible prior monthly earnings, subject to the Code Section 401(a)(17) compensation limit.

What is the Code Section 401(a)(17) compensation limit?

The 401(a)(17) limit refers to the annual maximum amount of compensation that the IRS allows for determining benefits in a qualified retirement plan, which is subject to annual indexing. For 2011, that limit is $245,000.

$245,000 x .07 = $17,150 maximum contribution to the PMPPP for 2011.


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