Finance - HL 163 (2)

 From: "Powell, Kevin, DALMEC" <Kevin.Powell@alpa.org>
Date: March 19, 2013, 12:10:31 PM EDT
To: "mark@pilotcommunication.net" 
Subject: Georgia Filing information

Mark,

As an FYI, the following is being sent to all Georgia resident pilots with an email address on file with ALPA. However, since you can reach so many more retirees, any dissemination you can do is greatly appreciated. Retired pilots who have already filed are also welcome to use the abbreviated process outlined below (submit name/SSN to DAL44@alpa.org).

Warm regards,

Kevin Powell, Chairman

Delta MEC Retirement & Insurance Committee

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Dear Delta Pilots who are Georgia Residents,

As you are probably aware, the FAA Modernization and Reform Act of 2012 (FAAMRA) provided you with the opportunity to roll bankruptcy-related claim and note proceeds into a traditional IRA and amend previously filed 2007 and/or 2008 federal tax returns to obtain a refund of previously paid taxes.

What you may not be aware of is the fact that federal law does not require comportment by state law. However, due primarily to the grass roots efforts of several Delta pilots, Governor Deal of Georgia has signed legislation permitting you to file an amended Georgia state tax return to recoup the state taxes that were paid on any IRA rollover transaction that was taken under the provisions of FAAMRA. The deadline for filing your amended Georgia state tax return(s) for 2007 and/or 2008 is November 15, 2013.

ALPA has worked with the Georgia Department of Revenue (DOR) to implement a streamlined process for the filing of your amended return(s). Please see attached for the filing requirements for those who have not yet filed. If you have already filed your amended Georgia tax return(s), Form(s) 500X, then all you need to do is forward your name and Social Security Number to DAL44@alpa.org. There is no need to contact the Georgia DOR. A Council 44 officer will confidentially collect this information, and then forward via an encrypted file to the ALPA contact working this issue in the Georgia DOR. As a reminder, you will receive approximately 20% additional in interest on your federal tax refund, but the Georgia legislation does not permit interest on your state refund.

 

If you opted to take advantage of the opportunity to roll bankruptcy claim and note proceeds into an IRA rollover account by the August 13, 2012 deadline, then please be sure to file your amended federal return(s) by no later than April 15, 2013, and your amended Georgia state return(s) by no later than November 15, 2013.

ALPA greatly appreciates the efforts of the Delta pilots that helped make this happen, and wanted to ensure all Georgia residents were informed of this development.

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In the last issue I received a note from Gene that stated he had lost over 90% of his pension and I should be careful not to understate our collective losses. I intuitively knew that Gene was thinking about ½ of his pension and specifically the annuity but I still  invited him to send in some level of documentation to verify his loss.  Below is his follow up, as he was indeed concentrating on the “annuity” not the whole pension.  This is an oversight many of us have used in our arguments about how much we have lost sometimes overlooking that the lump was approx 50% of our pension.  When we speak or argue about the pension we need to include the whole enchilada.  Likewise when we speak about monthly income loss we need to zero in on the “annuity”.   It is important, however, to be as accurate as we can be when stating our collective situation.  As I said in a prior issue, the 3500 lost far in excess of the 10-20% predicted during bankruptcy proceedings.  Instead the losses on average (when the whole pension including lump sum is taken into consideration) range between 30 and up to 50% of overall pension.  That actual level of loss is certainly significant enough to seek remedy, since no other group has suffered to this extent.  Our DP3 is addressing the annuity by seeking a corrected formulation by the PBGC on our qualified portion of that annuity.  The effort led by Rob Moser is seeking a hearing with the company concerning the non-qualified losses also within that monthly annuity.  Here is Gene’s follow up:

From: Gene Bates Date: 3/18/2013 7:57:16 AM To: Mark Sztanyo Subject: Re: Loss of Pension Income

I was speaking of the loss of the monthly income loss. Since that is the part that I thought we were attempting to recover, that was the amount that I had reference to.

I also received the lump sum sum. I suppose I read the statement incorrectly.

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