Jimmie Mathis Treasurer
Joel Funfar Secretary
Brent McFarlane NW Regional VP
Shannon (Moriarty) Deacon NW Regional VP
Nikki Wagener N W Regional VP
Keith Covert MW Regional VP
SPEEA Council Officers
Theryl Johnson Chair
Matthew Joyce Treasurer
Sandra Hastings Secretary
Midwest Regional Council Officers
Mark Gayer Chair
Matthew Joyce Treasurer
Emily Forest Secretary
Northwest Regional Council Officers
Tony Hickerson Chair
Orlando De Los Santos Treasurer
James Raskob Secretary
Bill Dugovich Communications Director
Lori Dupuis Graphic Designer/Web Developer
Karen McLean Publications Editor
Amber Musselman Communications Support
email@example.com • www.speea.org
published monthly by:
Society of Professional Engineering Employees
in Aerospace, IFPTE Local 2001, AFL-CIO, CLC
15205 52nd Ave S • Seattle, WA 98188 • (206) 433-0991
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POS TMASTER: Address changes to: The SPEEA SPOTLI TE,
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Periodicals Postage Paid at Seattle, Washington
Volume 60, Number 7, July 2016
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Phone: (316) 682-0262
Voluntary Investment Plan (VIP)
New VIP plan options
SPEEA-Boeing Professional and Technical contracts
By Matt Kempf
SPEEA Benefits Director
Two changes recently took effect for SPEEA-represented engineers and tech- nical workers related to retirement savings options.
• The maximum amount that an employee
may defer from his/her paycheck is
increasing from 25% of base salary up to
30% of their base salary.
• Employees may elect to defer their
401(k) savings into a new Roth option.
The Roth option is an addition to the existing
pre-tax and after-tax deferral options for retire-
ment savings. This gives SPEEA engineers and
techs three ways to save. Each option is eligible
to receive the applicable company matching
One of the potential benefits of deferring your
salary into the Roth option is that you pay
income tax at the applicable marginal tax rate
today and are protected from increases in mar-
ginal tax rates, because you won’t pay income
tax when you retire.
This would be very beneficial if you knew that
marginal tax rates were going to increase between
your deferral and your retirement and/or if you
expect to retire in a higher marginal tax rate.
Unfortunately, the addition of the Roth option
will not increase how much you may defer. The
Roth deferrals share the same Internal Revenue
Code (IRC) limitation on elective deferrals
(402(g)) as the pre-tax limit, so the most that
can be contributed between the Roth and the
pre-tax combined is no more than $18,000 for
2016 (plus catch up, if applicable).
If you are contributing at least 8% into the
Boeing 401(k) (to receive the maximum match)
and are under the Roth Individual Retirement
Account (IRA) AGI phase-out contribution limits, you may wish to contribute to a Roth IRA
instead of deferring your base salary into the
Boeing Roth 401(k) option.
Roth IRAs tend to have more advantages than
the Roth 401(k). Once your Roth IRA has been
opened for five years, you can withdraw your
contributions without penalty or taxes. You can
leave your gains in IRA, which makes a five-year seasoned Roth very useful in circumstances
where you want to invest the money, but may
have a need for the money before retirement.
Pre-tax After-tax Roth
(reduces taxable income)
(does not reduce taxable income)
Investment Gains Income tax deferred Income tax-free
Maximum Contribution 30% of base salary - subject to IRC*
*Internal Revenue Code (IRC)
Spirit sets WTPU and WEU raises
WICHITA - Salary raise pools for 2016 are set at 3% for the Wichita Engineering Unit (WEU) and 2.9%
for the Wichita Technical and Professional Unit
The raise effective date is July 8, with increases
reflected in the July 28 paycheck.
The raise pools are tied to the market for both
WTPU will have 0.5% retained from the pools
for out-of-sequence (OOS) raises and promo-
tions and has $244,000 left over from last year’s
unspent promotional funds. This brings the total
WTPU pool to 2.6%.
Managers determine raises based on individual
Performance Management scores and employees’
compa-ratio (ratio compared to Salary Reference
SPEEA-represented employees are eligible for
raises or lump-sum bonuses (depending on
their compa-ratio) if they are on active payroll
or Leave of Absence as of April 1.
See Article 12 (Job Classifications and Salaries)
in either SPEEA-Spirit contract. Both contracts are online at www.speea.org.