Since 2002, American has contributed more than $2 billion to its pension plans. In 2008, the company made the full amount of its required $78 million of contributions to its defined benefit pension plans for employees.
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.
Competitors, such as United, Delta, Northwest and US Airways, have terminated or frozen their defined benefit plans.
Low cost carriers, such as jetBlue and AirTran, do not offer defined benefit plan benefits to their employees.
Defined Benefit |
Defined Contribution |
|
|---|---|---|
| AA | 1.67% X Final Average Earnings x Years of Service |
No Plan |
| B6 | No Plan |
100% match up to 3% of pay |
| CO | 1.19% x Final Average Earnings x Years of Service OR 1.65% x Final Average Earnings x Years of Service based on total salary |
No plan |
| DL | Plan Frozen |
2% of earnings company contribution 100% match up to additional 5% of pay |
| FL | No Plan |
30% match up to 3% of pay |
| UA | Terminated |
6.5% of pay to union pension plan |
| US | No Plan |
$1.05 per hour worked contribution toward IAM National Pension Plan |
| WN | No Plan |
100% match up to 8.3% of pay |
