Originally Posted by
Night Hawk 6
Only 19 retirees announced for 1 November. This is somewhat surprising considering what will happen to the B-fund, however it is also indicative of the mindset of so much of the AA pilot force, trusting their financial future to a promise rather than facing the facts of the current situation. There are plenty of reasons to keep working especially for those who have already lost much of their retirement to divorce, failed second businesses, live pay check to pay check, etc. There are many though who have north of 1.5 million in their b-fund and are willing to risk that to the variables of the stock market between now and next spring and must have no concern over the yet to be determined administrative costs, estimated to be as much as 5 percent, of dispersing the funds some time within the next 12 months. ( Yes I know that management said it would be done in May but that is AA management speaking.) Hopefully it will all work out to their advantage.
Respectfully, I don't follow the logic here. Currently, the B Fund is 100 percent invested in equities so the same variability exist today as it will tomorrow. AMRIS has done a good job of managing the B Fund, but the option is there to have the funds activity managed within the 401k or another financial entity of the pilot's choosing. As to why so few choose to retire, clearly they weren't concerned that their retirement was going away, or no future contributions would be forthcoming.
Why is the argument always trotted out about failed marriages, businesses, etc. is it possible that senior pilots, in fact most pilots enjoy their chosen profession and the company they work for. That also means they want to see improvements, but the fact remains that most have chosen to stay for more than just the usual reasons thrown out. AA is and will continue to be a great company whether we merge with US, any other carrier or choose to go it alone.