Since 2002, American has contributed more than $2 billion to its pension plans.
American's consistent approach to investing, as well as its relentless focus on its pension commitment, has allowed it to maintain the defined benefit pension plans for its 130,600 participants when other competitors have frozen or eliminated this benefit. In recognition of the company’s ongoing fulfillment of employee pensions, American earned PLANSPONSOR's Corporate Plan Sponsor of the Year in March 2007.
American is encouraged by the progress it has made in boosting funding levels and is optimistic about the future of its defined benefit pension plans. The company’s goal continues to be to avoid the adverse pension outcomes suffered by other network carriers by securing its financial future. American looks forward to working with each of its unions to protect this important benefit.
Key Defined Benefit Pension Plan Facts
In recent years, American has consistently funded all employees’ defined benefit plan at or above the federally-required minimum – even during periods in which the company did not earn a profit.
Only one other airline still offers a defined benefit pension plan while every other airline has terminated or frozen their plans.
Fleet Service Clerk Pension |
||
|---|---|---|
Defined Benefit |
Defined Contribution / 401(k) Plan |
|
| AA (TA) | Employees will stay in this plan unless they choose to move to 401(k) plan |
Automatic 2.5% company contribution, 100% match up to 5.5% (New Hires, One-Time option for Current Employees) |
| AA (Now) | 1.67% x Years of Service x Final Average Earnings |
|
| B6 | No Plan |
100% match up to 3% of pay |
| CO | 1.19% x FAE plus .45% x FAE in excess of average Social Security Wage Benefit x Years of Service up to a max of 30 x 1/12 based on total salary |
20% match up to 3% 50% match up to 6% |
| DL | Plan Frozen |
2% plus 100% match up to additional 5% of pay |
| NW | Plan Frozen |
5% contribution to IAM Pension Plan |
| UA | Plan Terminated |
Employer 6.5% contribution to IAM Pension Plan |
| US | Plan Terminated |
$1.05 per hour contribution toward IAM National Pension Plan |
| WN | No Plan |
100% match up to 8.3% of pay |
