WestJet Pension

[aboveclouds]

Does WestJet have a Pension option? What are the Pension details? Is it in addition to the WestJet savings plan or is it either or?

[Airbrake]

No pension at this point, options are being researched and will be presented when a program that matches the requirements is found.

[Protonpilot]

Any news or timeline on this? It's been a year since the TA was ratified.

[ozone]

The company puts in a 10% contribution at the moment towards an rrsp or tfsa. Your choice. No match required. This will continue until a pension program is sorted out.

[boeingboy]

The company puts in a 10% contribution at the moment towards an rrsp or tfsa. Your choice. No match required. This will continue until a pension program is sorted out.

Are they flat taxing the TFSA at 40%?

[phenix]

The company puts in a 10% contribution at the moment towards an rrsp or tfsa. Your choice. No match required. This will continue until a pension program is sorted out.

Are they flat taxing the TFSA at 40%?

What does that mean?

[boeingboy]

The company puts in a 10% contribution at the moment towards an rrsp or tfsa. Your choice. No match required. This will continue until a pension program is sorted out.

Are they flat taxing the TFSA at 40%?

What does that mean?

Simple.

Westjet is flat taxing their part of the TFSA (you know TFSA'a are after tax right?) at 40%. So whatever they pay you - they tax at 40% and whatever is left over from that is whats deposited...just wondered if the were doing that to your pension as well.

[fish4life]

Are they flat taxing the TFSA at 40%?

What does that mean?

Simple.

Westjet is flat taxing their part of the TFSA (you know TFSA'a are after tax right?) at 40%. So whatever they pay you - they tax at 40% and whatever is left over from that is whats deposited...just wondered if the were doing that to your pension as well.

It would be illogical to tax any pension or RRSP contributions since they are not taxable income. I’d imagine they are just doing reduced tax at source but I don’t know how it works at WJ just every other place does that.

[phenix]

Are they flat taxing the TFSA at 40%?

What does that mean?

Simple.

Westjet is flat taxing their part of the TFSA (you know TFSA'a are after tax right?) at 40%. So whatever they pay you - they tax at 40% and whatever is left over from that is whats deposited...just wondered if the were doing that to your pension as well.

You keep using that word, I’m not sure it means what you think it means.
10% of you gross base income is added on whatever account (TFSA, RRSP or non registered) as income. It’s taxable income for TFSA or NR, it’s tax deferred for RRSP. It’s quite simple. Taxes come from governments.

[boeingboy]

What does that mean?

Simple.

Westjet is flat taxing their part of the TFSA (you know TFSA'a are after tax right?) at 40%. So whatever they pay you - they tax at 40% and whatever is left over from that is whats deposited...just wondered if the were doing that to your pension as well.

You keep using that word, I’m not sure it means what you think it means.
10% of you gross base income is added on whatever account (TFSA, RRSP or non registered) as income. It’s taxable income for TFSA or NR, it’s tax deferred for RRSP. It’s quite simple. Taxes come from governments.

It's quite possible that I am misunderstanding...as of right now all I have is the WSP PDF the company has given us. In it - it specifically states

"Westjets contributions directed to your TFSA will be the net amount after a 40% flat tax rate is applied. (Example: You contribute $1000 between Jan1 and June 30, the Westjet contribution match of $600 ($1000 less 40% tax) will be deposited into your TFSA account on Feb 15th of the following calendar year.)

I realize this is pension is separate from the WSP - but am wondering if they are flat taxing that 10% before they put it in your TFSA?

[CaptDukeNukem]

Simple.

Westjet is flat taxing their part of the TFSA (you know TFSA'a are after tax right?) at 40%. So whatever they pay you - they tax at 40% and whatever is left over from that is whats deposited...just wondered if the were doing that to your pension as well.

You keep using that word, I’m not sure it means what you think it means.
10% of you gross base income is added on whatever account (TFSA, RRSP or non registered) as income. It’s taxable income for TFSA or NR, it’s tax deferred for RRSP. It’s quite simple. Taxes come from governments.

It's quite possible that I am misunderstanding...as of right now all I have is the WSP PDF the company has given us. In it - it specifically states

"Westjets contributions directed to your TFSA will be the net amount after a 40% flat tax rate is applied. (Example: You contribute $1000 between Jan1 and June 30, the Westjet contribution match of $600 ($1000 less 40% tax) will be deposited into your TFSA account on Feb 15th of the following calendar year.)

I realize this is pension is separate from the WSP - but am wondering if they are flat taxing that 10% before they put it in your TFSA?

Sounds like you need an accountant

[fish4life]

Simple.

Westjet is flat taxing their part of the TFSA (you know TFSA'a are after tax right?) at 40%. So whatever they pay you - they tax at 40% and whatever is left over from that is whats deposited...just wondered if the were doing that to your pension as well.

You keep using that word, I’m not sure it means what you think it means.
10% of you gross base income is added on whatever account (TFSA, RRSP or non registered) as income. It’s taxable income for TFSA or NR, it’s tax deferred for RRSP. It’s quite simple. Taxes come from governments.

It's quite possible that I am misunderstanding...as of right now all I have is the WSP PDF the company has given us. In it - it specifically states

"Westjets contributions directed to your TFSA will be the net amount after a 40% flat tax rate is applied. (Example: You contribute $1000 between Jan1 and June 30, the Westjet contribution match of $600 ($1000 less 40% tax) will be deposited into your TFSA account on Feb 15th of the following calendar year.)

I realize this is pension is separate from the WSP - but am wondering if they are flat taxing that 10% before they put it in your TFSA?

If they deposited 600 into TFSA then give the government 400 you have a much smaller tax obligation to the CRA at the end of the year instead of if they deposited 1000 into your TFSA then the $400 in tax would need to come out of your cheque. Government gets the money either way

[cdnavater]

Simple.

Westjet is flat taxing their part of the TFSA (you know TFSA'a are after tax right?) at 40%. So whatever they pay you - they tax at 40% and whatever is left over from that is whats deposited...just wondered if the were doing that to your pension as well.

You keep using that word, I’m not sure it means what you think it means.
10% of you gross base income is added on whatever account (TFSA, RRSP or non registered) as income. It’s taxable income for TFSA or NR, it’s tax deferred for RRSP. It’s quite simple. Taxes come from governments.

It's quite possible that I am misunderstanding...as of right now all I have is the WSP PDF the company has given us. In it - it specifically states

"Westjets contributions directed to your TFSA will be the net amount after a 40% flat tax rate is applied. (Example: You contribute $1000 between Jan1 and June 30, the Westjet contribution match of $600 ($1000 less 40% tax) will be deposited into your TFSA account on Feb 15th of the following calendar year.)

I realize this is pension is separate from the WSP - but am wondering if they are flat taxing that 10% before they put it in your TFSA?

It’s simple, the WJ contribution is a taxable benefit but once it’s deposited in the TFSA(Tax Free) it would not be subject to tax.
I’m sure it’s a CRA requirement to tax at the source in order to direct deposit into a TFSA.

[boeingboy]

You keep using that word, I’m not sure it means what you think it means.
10% of you gross base income is added on whatever account (TFSA, RRSP or non registered) as income. It’s taxable income for TFSA or NR, it’s tax deferred for RRSP. It’s quite simple. Taxes come from governments.

It's quite possible that I am misunderstanding...as of right now all I have is the WSP PDF the company has given us. In it - it specifically states

"Westjets contributions directed to your TFSA will be the net amount after a 40% flat tax rate is applied. (Example: You contribute $1000 between Jan1 and June 30, the Westjet contribution match of $600 ($1000 less 40% tax) will be deposited into your TFSA account on Feb 15th of the following calendar year.)

I realize this is pension is separate from the WSP - but am wondering if they are flat taxing that 10% before they put it in your TFSA?

It’s simple, the WJ contribution is a taxable benefit but once it’s deposited in the TFSA(Tax Free) it would not be subject to tax.
I’m sure it’s a CRA requirement to tax at the source in order to direct deposit into a TFSA.

Of course it is....but if your not in the 40% tax bracket - the company is just stealing money from you.

[cdnavater]

It's quite possible that I am misunderstanding...as of right now all I have is the WSP PDF the company has given us. In it - it specifically states

"Westjets contributions directed to your TFSA will be the net amount after a 40% flat tax rate is applied. (Example: You contribute $1000 between Jan1 and June 30, the Westjet contribution match of $600 ($1000 less 40% tax) will be deposited into your TFSA account on Feb 15th of the following calendar year.)

I realize this is pension is separate from the WSP - but am wondering if they are flat taxing that 10% before they put it in your TFSA?

It’s simple, the WJ contribution is a taxable benefit but once it’s deposited in the TFSA(Tax Free) it would not be subject to tax.
I’m sure it’s a CRA requirement to tax at the source in order to direct deposit into a TFSA.

Of course it is....but if your not in the 40% tax bracket - the company is just stealing money from you.

Not really how the tax system works, they will put on the T4 or T5008 that you had a taxable benefit of 1000, you paid 400 in tax. If you paid more tax than you were supposed to, you will pay less other tax or get a return.
It’s better than if they put all 1000 in you TFSA and then you were assessed the tax at the end of the year, you likely would not have paid enough tax already and the tax man needs their pound of flesh.

[CaptDukeNukem]

It’s simple, the WJ contribution is a taxable benefit but once it’s deposited in the TFSA(Tax Free) it would not be subject to tax.
I’m sure it’s a CRA requirement to tax at the source in order to direct deposit into a TFSA.

Of course it is....but if your not in the 40% tax bracket - the company is just stealing money from you.

Not really how the tax system works, they will put on the T4 or T5008 that you had a taxable benefit of 1000, you paid 400 in tax. If you paid more tax than you were supposed to, you will pay less other tax or get a return.
It’s better than if they put all 1000 in you TFSA and then you were assessed the tax at the end of the year, you likely would not have paid enough tax already and the tax man needs their pound of flesh.

Yup. Agreed. Any taxes paid in excess gets cleared up in April. As Cdnavater said, if you overpaid, and it’s all a wash cuz you can all of a sudden pay rent for May much easier.

[Protonpilot]

Sorry guys, didn't mean to send you down that rabbit hole. I was just curious if your team had chosen a retirement plan, or had a short list of possible plans. Looks like the answer is not yet. Thanks!

[cdnavater]

Sorry guys, didn't mean to send you down that rabbit hole. I was just curious if your team had chosen a retirement plan, or had a short list of possible plans. Looks like the answer is not yet. Thanks!

I’d like to talk a bit about rabbit holes, some are bigger than others, some you don’t even know they are there until a rabbit crawls out;)

[boeingboy]

Of course it is....but if your not in the 40% tax bracket - the company is just stealing money from you.

Not really how the tax system works, they will put on the T4 or T5008 that you had a taxable benefit of 1000, you paid 400 in tax. If you paid more tax than you were supposed to, you will pay less other tax or get a return.
It’s better than if they put all 1000 in you TFSA and then you were assessed the tax at the end of the year, you likely would not have paid enough tax already and the tax man needs their pound of flesh.

Yup. Agreed. Any taxes paid in excess gets cleared up in April. As Cdnavater said, if you overpaid, and it’s all a wash cuz you can all of a sudden pay rent for May much easier.

[cjet]

April 17 Westjet MEC Pirep podcast has lastest pension info. Free to listen to on youtube or wherever you get your podcasts.

Cjet

[JungleRiot]

From ALPA today:

Fellow pilots,



Pursuant to section 22-5 of the collective agreement, your MEC, ALPA consultants and the Pension Sub-Committee have been working collaboratively with WestJet Management to identify the best pension plan for our group. Following a comprehensive search and evaluation process, we are pleased to announce that the Colleges of Applied Arts & Technology (CAAT) Pension Plan has been selected to meet the retirement needs of our pilots, in their DBplus pension design. We are currently working with CAAT to finalize the terms of participation in the plan.



Subject to final participation terms being agreed to, and in coordination with CAAT (the plan Administrator), informational packages are currently being prepared and we are also planning ‘in-person’ educational roadshows, tentatively scheduled for the fall. Furthermore, the attached communication (pdf) from CAAT highlights some of the benefits of DBplus.



We strongly encourage attendance at one of the many ‘in-person’ sessions or webinars that will be offered in advance of the plans’ effective date of January 1, 2025. These will be presented by CAAT, with WJA ALPA representatives in attendance to assist and answer questions.



Per section 22-5.05 of CA2, current pilots will be afforded a one-time opportunity to ‘opt out’ of joining DBplus. This election must be made by November 30, 2024. We will work with CAAT to provide you with all the information that you need if you are contemplating ‘opting out’.



The MEC and CAAT will provide additional material for you to review, as well as communicate roadshow locations and times once all the details have been finalized. These sessions will help you understand the benefits of joining the pension plan, as well as the implications of opting out.



While we believe that CAAT’s DBplus pension is a great option for all pilots, the decision to opt-out is ultimately yours.



Note: If no election is made by November 30th, you will default to joining the CAAT plan as recommended by the MEC.



Please refrain from sending DARTs/emails or calling your MLO or union representatives about this subject until you have a chance to review the information packages/attend the roadshows in the fall.



This announcement is thanks to the hard work of both WestJet and WJA ALPA during CA2 negotiations and will help the WestJet Group attract and retain the best talent, continuing to make WestJet a career destination for Canadian pilots.

[QKZXKV]

I heard rumors of this plan a couple months back, really excited for you all to see it confirmed!

[Protonpilot]

CAAT DB Plus looks like a great plan. Well done.

Are you going to be contributing to it, or will it be only the employer contribution of 10%?

[seriousflyer]

10% employer contribution. Employee must contribute 1% on top as per the pension policy.

Captains will have excess cash contributions to contribute into another savings vehicle, as many step 12 Captains Gross more than 350K.

[twinpratts]

Employee also has to option to increase their amount above 1% if desired.