During our restructuring, we needed to make company-wide changes to our current retirement benefit plans and transition the company to a sustainable, defined contribution approach similar to what is now in place at other U.S. airlines.
Retirement Plan Changes
American froze all of its defined benefit pension plans and its pilot B Plan on Nov. 1, 2012. Following the freeze, the company terminated the pilot B Plan on Nov. 30, 2012. All B Plan assets will be distributed to plan participants.
By freezing the plans, employees will retain the full value of benefits accrued in the plans through Oct. 31, 2012. Employees will continue to earn vesting service, and freezing also preserves the ability to satisfy the requirements to obtain the frozen benefit under the early retirement option.
The defined benefit pension plans were replaced with a company-matching benefit to a defined contribution plan for all eligible Agent, Representative, Planner, Flight Attendant, TWU-represented, Management and Support Staff employees on Nov. 1, 2012. The company will match, dollar-for-dollar, an employee’s pre-tax and/or Roth 401(k) contributions to the $uper $aver 401(k) plan, up to 5.5 percent of eligible earnings. Pilots will receive a 14 percent contribution to the $uper $aver Plan which is effective for pay earned starting Nov. 1, 2012.