United Ends Bk-proof Executive Retirement Plan

AA has also said, in their press release, "We support a ban on preferential funding of Supplemental Executive Retirement Programs while the minimum contributions are not being made to the corporate defined benefit plans."

This from one of the companies that lobbied Congress to allow them to underfund their retirement plans even more than they were already.
 
Wretched Wrench said:
AA has also said, in their press release, "We support a ban on preferential funding of Supplemental Executive Retirement Programs while the minimum contributions are not being made to the corporate defined benefit plans."

This from one of the companies that lobbied Congress to allow them to underfund their retirement plans even more than they were already.
[post="256490"][/post]​

At least our pension is still being funded, unlike those of your counterparts at US and UA.
 
Former ModerAAtor said:
At least our pension is still being funded, unlike those of your counterparts at US and UA.
[post="256711"][/post]​


Well its still being underfunded as allowable by law you mean.
 
Bob Owens said:
Well its still being underfunded as allowable by law you mean.
[post="256764"][/post]​

Always half empty.

Mr Owens, federal law prohibits intentionally overfunding Defined Benefit pension plans. And as Arpey and Beer announced several weeks ago, the amount of AA's underfunding is evaporating as interest rates rise and as equity markets continue to improve.
 
PRINCESS KIDAGAKASH said:
It's still almost $3,000,000,000 underfunded! :down: Spin,Spin,Spin! :wacko:
[post="256781"][/post]​

Better than UAs being over $8,000,000,000 underfunded! Actually I beleive AAs is around $2.6 billion underfunded. But as a previous poster has said, as interest rates and the value of the investments rise, the plan becomes less underfunded. In fact, in the future, it can be fully funded or over funded like it was a few years ago. It is also true that the government has limits as to how much a company can over fund its pensions because the companies can use this to reduce or eliminate corporate federal income taxes.
 
The glass is 80% full, but the conspiracy theorists around here don't want to bother with facts.

At 80% and growing, AA's plans appear to be better funded than Social Security is right now...
 
If any of you are seriously considering an AA retirement plan then, well as a famous engineer once quoted to Capt. Smith, "I assure you Captian, she can sink, she will sink, she's made of iron and will be on the bottom of the Atlantic in less than two hours."
 
HGIEFOswitch said:
If any of you are seriously considering an AA retirement plan then, well as a famous engineer once quoted to Capt. Smith, "I assure you Captian, she can sink, she will sink, she's made of iron and will be on the bottom of the Atlantic in less than two hours."
[post="256845"][/post]​

Your reference to the Titanic is apt and timely. Our situation is akin to the Titanic only having one lifeboat, reserved for the Captain and his top officers.

But I do think you are right about getting out. Something is in the wind.
 
PRINCESS KIDAGAKASH said:
It's still almost $3,000,000,000 underfunded! :down: Spin,Spin,Spin! :wacko:
[post="256781"][/post]​

On an ABO basis (the commonly accepted measure), the plans are 80% funded as of 12/31, and the underfunding equals $1.823 billion.

On a PBO basis (full of fantasy projections), the plans are underfunded by $2.687 billion.

http://www.shareholder.com/aa/EdgarDetail....-3726&SID=05-00 (page 69)


Compare to UAL's plans which are only 55% funded as of 12/31; their ABO underfunding equals $5.955 billion. On a PBO basis, UAL's underfunding equals $6.425 billion.

http://ccbn.tenkwizard.com/filing.php?repo...00000&VL=0066FF

AMR has contributed hundreds of millions to its pension plans in the last few years; it's doing the best it can to catch up. But of course, not fast enough for you. Like Veruca Salt in Willy Wonka, you scream "I want it now."

As of Jan 19, 2005, AMR had already contributed $42 million of 2005's projected contribution of about $310 milion. With rising interest rates, it is very likely that the plans will be nearly 90% funded by 12/31. No doubt, that will not be enough for you. "I want it now," you will scream. Well, Veruca, we can't always get what we want, when we want it.

And it's not just the pilots who will get hosed by UAL's pension defaults - the other day, I read where some mechanics won't get their full pension, either (although the shortfall is, of course, much smaller than the hosing the pilots are taking).
 
The glass is 80% full, but the conspiracy theorists around here don't want to bother with facts.

At 80% and growing, AA's plans appear to be better funded than Social Security is right now...

Is that supposed to be good news?

Your comparison of our pension to Social Security is a joke.

Looks to me like AA and Social Security are both headed the way of the Titanic and that is not rocket science.

Simple math will prove AA will never be able to sustain their pension deficit. :lol:
 
TIME FOR CHANGE said:
Simple math will prove AA will never be able to sustain their pension deficit. :lol:
[post="257017"][/post]​
Except that pension funding involves no simple math.
 
TIME FOR CHANGE said:
Your comparison of our pension to Social Security is a joke.

Yes, it was. Thanks for noticing.

Simple math does prove that AA's funds are better funded than the plans of other carriers. And simple math proves that they'll pay out more to retirees than the plans at UAL and US will.
 
Simple math does prove that AA's funds are better funded than the plans of other carriers. And simple math proves that they'll pay out more to retirees than the plans at UAL and US will.

When you or the majority still working at AA retire you will be lucky to see 50 cents on the dollar. That is being generous.
The PBGC will take over and be grateful if you see 25 cents on the dollsr. Talk to the retirees of PAA

Fact 30 years at PAA equates to 400 dollars a month. :huh: