Looks like the PBGC getting ready to argue!

[Hopeful]

http://www.pbgc.gov/news/press/releases/pr12-11.html

From what I take from this is that AA might be leaning towards termination of the pension funds....

 

[TWU informer]

What was your first clue?

1113 (c - Your Worst Nightmare - And You Thought the T/A Was Bad

 

[Hopeful]

What was your first clue?

1113 (c - Your Worst Nightmare - And You Thought the T/A Was Bad

Well not being an insider and not being a fly on the wall, this is the first actual clue as to terminating it! Since we do not know if actual "official" negotiations have started yet, who knows if the company may use either termination or freezing of the pensions as "alternate" cost cutting.

Up until now, we do not know if the pensions will be frozen or terminated....They will end no doubt, but which of the two choices.

 

[usa1]

Well not being an insider and not being a fly on the wall, this is the first actual clue as to terminating it!

That has always been the MAIN objective of the bankruptcy filing ..... "World Traveler" wants cheap tickets, and thats the only way AA can provide them.

 

[wrencher]

Well not being an insider and not being a fly on the wall, this is the first actual clue as to terminating it! Since we do not know if actual "official" negotiations have started yet, who knows if the company may use either termination or freezing of the pensions as "alternate" cost cutting.

Up until now, we do not know if the pensions will be frozen or terminated....They will end no doubt, but which of the two choices.

FROZEN /TERMINATED same difference the PBGC is just posturing so they can collect more stock in the new company after AMR exits BK. Just wait and see how many MILLION and I said MILLION'S of shares they recieve. When our plans where quote Frozen some two years later the IAM finally started to use the word terminated when we that that they may defraust our pension plans and possibly start funding them again.

 

[Hopeful]

That has always been the MAIN objective of the bankruptcy filing ..... "World Traveler" wants cheap tickets, and thats the only way AA can provide them.

Hence, the result of deregulation. the only way to offer bus fares on airlines was to decimate labor.

 

[TWU informer]

Hence, the result of deregulation. the only way to offer bus fares on airlines was to decimate labor.

But Wait!!!!
The affiliation with the powerful AFL-CIO as our political influence has extracted millions from your paycheck to protect our interest.
Are they now ready to ride in on a white horse and correct these injustices? 😱

Did you get your monies worth?

 

[Kev3188]

FROZEN /TERMINATED same difference the PBGC is just posturing so they can collect more stock in the new company after AMR exits BK. Just wait and see how many MILLION and I said MILLION'S of shares they recieve. When our plans where quote Frozen some two years later the IAM finally started to use the word terminated when we that that they may defraust our pension plans and possibly start funding them again.

There's a huge difference between "frozen," and "terminated."

 

[wrencher]

There's a huge difference between "frozen," and "terminated."

Tell us then I'm listening

 

[Hopeful]

But Wait!!!!
The affiliation with the powerful AFL-CIO as our political influence has extracted millions from your paycheck to protect our interest.
Are they now ready to ride in on a white horse and correct these injustices? 😱

Did you get your monies worth?

I agree, the might AFL-CIO sat by idly during Lorenzo's attack on Continental in 1983, then did nothing at Eastern. I guess the AFL-CIO only cares about THEIR member unions.

 

[nbmcg01]

Tell us then I'm listening

Frozen-the DB stops where it is and payout will be based on what it should be as of date frozen. Usually an age weighted 401K is put into place.

Terminated-goes to the PBGS and payouts are based on their guidelines.

 

[MCI transplant]

Hence, the result of deregulation. the only way to offer bus fares on airlines was to decimate labor.

<_< -------- There's hope for you yet Hopeful! You've finally got it right!!!

 

[Hopeful]

Tell us then I'm listening

Example....Suppose you are 62 and were planning on retiring...If the company freezes the pension, you get what your pension should be at that age and years of service. If they terminate and you still wish to retire at 62, you will take about a 7% year reduction in that pension for each year under 65. (PBGC rules based on 65..NOT AA rules of 60 year old.

Example... You retired this year at 62....If they freeze it, you get what you are suppsed to get. If they terminate it, you will get your pension reduced bu about 7% a year for each year under 65 as well...DOES NOT MATTER THAT YOU ALREADY RETIRED!

I am just using 62 as an example. If the company terminates the pension and the PBGC takes it over, if your are retired or planning on retiring at ANY age under 65 you sell a reduction in your benefit.WHETHER OR NOT YOU ARE ALREADY RETIRED!

If they freeze it, whatever you have accrued, you should get that amount at age 65, providing your benefit does not exceed the PBGC cap!

If you are 65 or older, you should not see any reduction in your benefit whether or not you are retired and whether or not they terminate or freeze the pension...ALL based on PBGC caps.

All in all, it is safe to say that if your are 65 or older, you are in the best shape.

 

[wrencher]

Example....Suppose you are 62 and were planning on retiring...If the company freezes the pension, you get what your pension should be at that age and years of service. If they terminate and you still wish to retire at 62, you will take about a 7% year reduction in that pension for each year under 65. (PBGC rules based on 65..NOT AA rules of 60 year old.

Example... You retired this year at 62....If they freeze it, you get what you are suppsed to get. If they terminate it, you will get your pension reduced bu about 7% a year for each year under 65 as well...DOES NOT MATTER THAT YOU ALREADY RETIRED!

I am just using 62 as an example. If the company terminates the pension and the PBGC takes it over, if your are retired or planning on retiring at ANY age under 65 you sell a reduction in your benefit.WHETHER OR NOT YOU ARE ALREADY RETIRED!

If they freeze it, whatever you have accrued, you should get that amount at age 65, providing your benefit does not exceed the PBGC cap!

If you are 65 or older, you should not see any reduction in your benefit whether or not you are retired and whether or not they terminate or freeze the pension...ALL based on PBGC caps.

All in all, it is safe to say that if your are 65 or older, you are in the best shape.

Not going to argue here but when our plans were terminated those that were 55 as of that date got ALLLLLLLLLLLL their retiremnt if you were under 55, which was the earliest our plan would let you go then the PGGC tables kicked in and you recieved a shortfall of 5% per year from the PBGC 65 retire age. THIS was proven tested and done.

 

[TWU informer]

I agree, the might AFL-CIO sat by idly during Lorenzo's attack on Continental in 1983, then did nothing at Eastern. I guess the AFL-CIO only cares about THEIR member unions.

I really don't see where they are any benefit to their member unions either. Unless you consider a bunch of worthless bastards working in a marble Taj Mahal type building making $250,000.00 per year accomplishing nothing a benefit.