Dispatch

Today, TWU-represented employees at American Airlines contribute an amount each pay period to a trust that is used to pay for the employees’ retiree medical costs upon retirement. The company also matches the employees’ prefunding contributions.

 

This trust has strict terms that allow American to only use the funds for costs related to the employees’ retiree healthcare.

 

As part of the planned benefit changes, American will refund the employees’ prefunding contributions, and the associated investment earnings, to all employees still contributing to the trust.

 

Now, American has agreed to provide the employer match to employees by also refunding the company’s trust contributions (subject to applicable tax withholding), for TWU workgroups with ratified agreements. Since this trust is also used to fund costs related to current retirees’ healthcare, the 1114 process must be successfully resolved before the refund can be made. For details on additional active medical changes American is seeking to implement for all employees, please click here.