AA retirement settlement

[banger]

Flew yesterday with a great guy who is an AA furloughee. Told me he heard that AA guys would be getting a nice $80K-$100K settlement from the pension closeout and that you need to be on the property by this fall to be eligible for it. He is thinking about heading back. Don't know exactly how many AA guys we have here at Bluejet but if they all headed back in 2013 it would really put a dent in the operation.

 

[i fly boxes]

How are they going to call all 1500 back by this fall

 

[Turtle21]

The 100k is the value of stock to be distributed to pilots on the active list now or on it pronto.. Some additional stipulations are in the proposal but you are correct that AA pilots that want it have to be active.

 

[Draginass]

Believe that $80k-100k when you see it in the bank account. I think that's very optimistic, especially when how it's going to be divided up isn't released yet.

 

[Daddy]

And especially with them in ch 11

 

[General Lee]

And especially with them in ch 11

Wrong. When the DL pilots came out of BK, they were essentially creditors, and got a piece of the company. Each pilot was given a large chunk, which most of it was spread out over the previous 3 years 401K allottment (to fill up each year to the max allowed by IRS---maybe up to $45K per year?), and then the rest was given in cash, which was taxed. (that was the bad part) The min given to the most junior pilot (even on furlough) was about $200K, and senior Capts were given about $500K. Sounds great, but remember anything left over after the 401K allottments was taxed at 35%, so a big chunk was given to the Gov't. If you were junior, on furlough, and hadn't contributed to your 401K in the previous 3 years, then $135K was thrown into the 401K to cover those 3 years, and then you got $65K in cash, which again was taxed. This was also a replacement for the pension plan, which didn't have a frozen pension (like NWA). Now there is a DC plan (direct contribution) that puts the equivalent of 12% of what you make each month (if you make $10K one month, the company puts in $1200 in your name into your account) into a 401K account, and then an additional 2% match to your own seperate 401K. So, you really don't have to contribute anything, and 14% of what you make is put in for you.


Bye Bye---General Lee