IRS TAX ISSUES

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Legislation submitted in Congress that would increase the age at which commercial pilots must retire from service as pilots has raised concern that enactment of such legislation would interact with the provisions of Section 415 of the Internal Revenue Code to the detriment of commercial pilots. Consulting Actuary Edward E. Burrows puts to rest the myth that any change to the Age 60 Rule will adversely affect Defined Benefit Plans. It puts to rest the ALPA scare tactic used in the past that a change in the age 60 rule would seriously endanger special provisions of the Internal Revenue Code which ALPA had worked so hard on. In point of fact, the provisions give special financial help to the airlines themselves who have agreed to pay "non-qualified" or "excess" amounts contractually agreed to in Defined Benefit Plans. Pay particular attention to Line 5 of the Abstract. Note that ALL ALPA carriers have agreed to pay out of their treasuries any of these "non-qualified" or "excess" payments. The story ALPA ran in the Air Line Pilot a few years ago on this topic was misleading at best and an outright knowingly false statement at worse.

Burrows Report     (.pdf format)

Burrows Report Abstract     (.pdf format)