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Explain it to him Bob!
Current AA retiree health insurance ?
- Thread starter NewHampshire Black Bears
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Because over 20 years ago we started Prefunded our Retiree medical. A sum of money, after tax, was deducted from each paycheck.The deal was that for every dollar we put into the fund the company matched it. When we retired whatever was in the fund was to be considered payment in full for retiree medical and the money was used by the company to pay for it. This was a $300,000 plan from 55 till we got Medicare, then it switched to a bridge plan with a $50,000 lifetime cap. AA has benefitted for over 20 years by having employees Prefund their retiree medical while for most of that time the other carriers picked up the entire tab.
MCI transplant
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When AA signed it's last Contract agreement with it's Unions, AA agreed to pay "X" amount of $$, in compensation, to it's employees, plus benifits, which included the above mentioned health care plan, in exchange for services rendered! And, until a Judge says otherwise, leaves AA legally obligated to honor that agreement!
MCI transplant
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I don't know informer.------ If I was to guess, I'de say it might have something to do with the merger. But than that's just a guess on my part.
AANOTOK
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It sounds as though the TWU may be trying to use the awarded equity and or the match to subsidize current and future retiree health coverage. It also sounds as though the matching funds (pool) are still in play.
In the court process, at least one major issue remains unresolved: What happens to retiree health claims? Currently, retirees pay nothing for health care. Paul Mazzara, a former TWA and American mechanic who is chairman of the American Airlines Retirees Committee, worries that future premiums for health care might be around $1,000 a month. "Most retirees don't make $1,000 a month," he said.
In ongoing talks, attorneys for the airline and the retirees are negotiating the outcome of the retiree health care claim. The airline intends for retirees to be placed in an insurance pool with future retirees, where they would benefit from a group discount, according to a person familiar with the negotiations. The retirees would likely pay a monthly premium in the hundreds of dollars; the coverage would not be subsidized by the airline. So far, attorneys for the retirees have rejected this resolution.
Besides becoming part of the insurance pool, retirees may receive some amount of value in recognition of their claim, which is valued at around $1.2 billion, the person said. The resolution is being negotiated: retirees could receive a future subsidy to their premiums or they could be awarded value in the near term, which would diminish the pool of funds available to other creditors.
Along with the price of US Airways shares, the retiree health care claim is "the wild card that most affects the equity recovery," said CRT Capital Group analyst Kevin Starke, who was among the first to see that AMR Shares might have value. He described that likelihood in a Dec. 7 report, when shares traded at 51 cents. They closed Friday at $2.52.
AMR has three choices, Starke said. It can allow retirees to maintain their health care benefits, which would represent a $1.2 billion liability; it could dismiss retiree health care claims, as some other carriers have done; or it could place the retirees in a pool and also award stock to satisfy the claim.
"It's hard to get compensation up to the full amount of the claim, but my model shows the retirees getting something," Starke said. "The company can give away some stock and clean up the balance sheet."
http://business-news...y-ever/11857592
In the court process, at least one major issue remains unresolved: What happens to retiree health claims? Currently, retirees pay nothing for health care. Paul Mazzara, a former TWA and American mechanic who is chairman of the American Airlines Retirees Committee, worries that future premiums for health care might be around $1,000 a month. "Most retirees don't make $1,000 a month," he said.
In ongoing talks, attorneys for the airline and the retirees are negotiating the outcome of the retiree health care claim. The airline intends for retirees to be placed in an insurance pool with future retirees, where they would benefit from a group discount, according to a person familiar with the negotiations. The retirees would likely pay a monthly premium in the hundreds of dollars; the coverage would not be subsidized by the airline. So far, attorneys for the retirees have rejected this resolution.
Besides becoming part of the insurance pool, retirees may receive some amount of value in recognition of their claim, which is valued at around $1.2 billion, the person said. The resolution is being negotiated: retirees could receive a future subsidy to their premiums or they could be awarded value in the near term, which would diminish the pool of funds available to other creditors.
Along with the price of US Airways shares, the retiree health care claim is "the wild card that most affects the equity recovery," said CRT Capital Group analyst Kevin Starke, who was among the first to see that AMR Shares might have value. He described that likelihood in a Dec. 7 report, when shares traded at 51 cents. They closed Friday at $2.52.
AMR has three choices, Starke said. It can allow retirees to maintain their health care benefits, which would represent a $1.2 billion liability; it could dismiss retiree health care claims, as some other carriers have done; or it could place the retirees in a pool and also award stock to satisfy the claim.
"It's hard to get compensation up to the full amount of the claim, but my model shows the retirees getting something," Starke said. "The company can give away some stock and clean up the balance sheet."
http://business-news...y-ever/11857592
FYI - No one on the Retiree Committee is asking for a nickel of any active TWU employee’s prefunding or prefunding match or to interfere with the distribution of the Company match to employees as required by the contract. What the Retiree Committee is asking for is that the Court not allow the Company to simply jettison its obligations to retirees leaving them with nothing. It is not asking any active employee to meet this obligation; it is asking the Company to do so.
Good luck hope you guys get it to set the bar for the rest
OP
NewHampshire Black Bears
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MCI transplant
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No! No! No! Bears!------ Not a Democrate ether!----- If you have to put a label on me, I guess the closest would be a conservative leaning "Independant"! I vote for what I feel, and who I feel, has the most common sence on any give issue!
MCI transplant
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Yeah usa, we all know about ObamaCare! And once you hit, or if you hit, 75, most of that stops!
MCI transplant
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And more than a little ironic too it's being done , not by the TWU, but by an ex TWA mechanic!!!!
TWA not a dead horse issue, ex TWA IAM members have always fought back the lacky TWU at every turn. We were the Le Miserables In the NY Metro area against the TWU drones.
The IAM should get the ball now at the New American..
Liberals never get old, so they don't care ...... Ha Ha!
