How the Pension Benefit Guaranty Corp. Enabled the American/US Airways Merger

[Buck]

It depends on how long you have been in the plan and what the multiplier is.

That would mean that AA Mechanics would have to given full credit and then as Scorpian 2 stated the AA plan rules...

 

[1AA]

That would mean that AA Mechanics would have to given full credit and then as Scorpian 2 stated the AA plan rules...

Given full credit is a risky promise. If the iam plan defaults and gets turned over to the pbgc they only pay the actual time in the plan. That also pay at a reduced payout. So if the iam pension will give you credit for time with the company that means they need more funds to pay out for every aa retiree. This is all a pipe dream to sucker us into the scam iam pension plan. Stick with the 401k that we have. As bad as it is it is better than the iam scam pension plan. We need to work on getting a higher match instead of looking at the iam plan.

 

[Phoenix]

and that pension is a replacement pension from what was terminated in BK. and those employees STILL will receive their US pensions - just that it will come from the PBGC.

 

correction.

only the original DL pilot pensions were terminated.

All other pensions at DL and NW were frozen, not terminated, and it is precisely because the Pension Protection Act worked to keep DL from terminating all but its original pilots' pensions that the PBGC came to AA armed with a case of how airline pensions could be saved.

and the PBGC did extract a $2 billion claim from DL for the pilot pension so the figure of $10 billion from AA for all pensions was probably about right when adjusted for inflation and AA's older workforce.

 
 
Thank you for confirming that the original Delta pilot pension was terminated.  
 
The PBGC contributed nothing to the LAA pension.  The New American is the only airline among the majors that no longer has profit sharing for its largest employee groups.  It is not a coincidence that the timing of the cessation of LUS profit sharing coincided with the preservation of the LAA pensions (especially in the most insane, historic, unfathomed, record profits in the entirety of the airline industry history).   Or maybe it is.  

 

[Real tired]

That would mean that AA Mechanics would have to given full credit and then as Scorpian 2 stated the AA plan rules...

You would only be given credit for your time served going toward your pension draw date.  30 and out, for example.  You would still have to pay into the system for at least 5 years before you would ever receive a monthly check.  Other than that, it would be a lump sum.
 
And for a monthly check for a USAir Mechanic retiring in 2015..... it would be $625.89 per month before taxes.  Our multiplier is $85.46 and we received no increase in our pension multiplier as promised by the IAM negotiating team in our last contract.
 
So, if I retire in 2016, my monthly check will be $ 711.35.

 

[Real tired]

Given full credit is a risky promise. If the iam plan defaults and gets turned over to the pbgc they only pay the actual time in the plan. That also pay at a reduced payout. So if the iam pension will give you credit for time with the company that means they need more funds to pay out for every aa retiree. This is all a pipe dream to sucker us into the scam iam pension plan. Stick with the 401k that we have. As bad as it is it is better than the iam scam pension plan. We need to work on getting a higher match instead of looking at the iam plan.

Not really.
If the IAMNPF defaulted, or was nearing default, before it ever went to the PBGC, other things would happen due to this:
 
http://www.pbgc.gov/about/factsheets/page/multiemployer-pension-reform-act-of-2014-faqs.html
 
The reform act would allow them to reduce your benefits to prevent the PBGC from taking on another liability.

 

[WorldTraveler]

Thank you for confirming that the original Delta pilot pension was terminated.  
 
The PBGC contributed nothing to the LAA pension.  The New American is the only airline among the majors that no longer has profit sharing for its largest employee groups.  It is not a coincidence that the timing of the cessation of LUS profit sharing coincided with the preservation of the LAA pensions (especially in the most insane, historic, unfathomed, record profits in the entirety of the airline industry history).   Or maybe it is.

given that UA is composed of PMCO employees who have non-terminated pensions and AA has PMUS employees who do have terminated pensions, all of the big 3 US airlines have employees that that both terminated and non-terminated pensions.

The difference, as you note, is that AA is the only carrier that doesn't have profit sharing for frontline employees.

I'm not sure there is really any connection between pension termination and profit sharing because every airline has a mixture of employees with and without terminated pensions.

termination of LUS profit sharing came because Parker succeeded at convincing both AA and US employees that if they supported the merger, he would give pay raises to both groups - which he did. but the total of profit sharing and salaries at other airlines is still higher than JCBA pilot and FA compensation.

AA will likely report nice profits every quarter this year - but employees don't get any more or less regardless of what they do to make AA succeed.

 

[swamt]

You would only be given credit for your time served going toward your pension draw date.  30 and out, for example.  You would still have to pay into the system for at least 5 years before you would ever receive a monthly check.  Other than that, it would be a lump sum.
 
And for a monthly check for a USAir Mechanic retiring in 2015..... it would be $625.89 per month before taxes.  Our multiplier is $85.46 and we received no increase in our pension multiplier as promised by the IAM negotiating team in our last contract.
 
So, if I retire in 2016, my monthly check will be $ 711.35.

Imagine that. And you guys were warned about it...