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 in the TWU proposals to provide the employer match to employees by also refunding the company’s trust contributions (subject to applicable tax withholding), if consensual agreements are reached and contingent on the successful resolution of the Section 1114 retiree process. For details on additional active medical changes proposed to the TWU and all employees, please click here.