Anyone have any experience with the black hole fund? Basically I want to know what deductions are taken out of this when you receive the pay at the beginning of the year. Is it hit with the same TSP, OASDI, fed and state taxes, FERs and all the normal deductions? From what I gather, this is pure overtime. Anyone can shed any light on how this works? I’m sure the office will find a way to screw it up so I want to make sure it’s correct when it comes through.
If you are a permanent Chief Mate, 1st AE, 2nd Mate, or 2nd AE (typically these rates hit the pay cap) any $$$ that was deferred the last year will get paid out during the first pay period of the next year. So you could get $40,000 gross on payroll 01-25. It gets taxed like any other pay. This does not impact your TSP or FERS contributions.
If you are a permanent Captain or Chief Engineer than any deferred income remains in your “black hole” fund until you retire, switch agencies, or separate from federal service. These folks make the same amount every pay period throughout the year; anything over the automatic 1 hour OT/day gets deferred for them. This includes penalty pay, explosives pay, shipyard food money, “retention” bonus, comp time which have converted to OT, overdue award pay etc…
It is a crazy system which everyone has been complaining about for years. Another one of those “it takes an act of Congress” to fix MSC problems.
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Running numbers with some folks I’ve sailed with, a CIVMAR Captain or Chief Engineer would make $310,000-$330,000 a year if MSC actually paid them what they earn on paper. How can you offer a “retention” bonus if you don’t actually get it for another 15-20 years?
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