AA recalls
07-21-2011 | 12:26 PM
#351
Gets Weekends Off
Joined: Sep 2006
Posts: 392
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From: B-737
Not quite: see below,
As of January 1, 2010, the AFN indicates the funded level of the A Plan is 96.44%. This
compares with funded levels of 142% in 2008 and 104% in 2009. This decline in the funded
level can be attributed to the following factors:
· The January 2008 figure was artificially high due to the change in the mandatory
retirement age, accompanied with an increase in the discount rate used to calculate the
present value of the benefits earned under the plan.
· The high funded levels for IRC purposes in 2008 and 2009 meant that no A Plan
contributions were required for those plan years, nor were any made.
· Because additional pension benefits are being earned each year, and because previously
accrued benefits move “one year closer to being paid,” there is a natural tendency for the
funded level to decrease unless contributions are made to the plan. This tendency was
counteracted to some extent in the January 2010 figure by above average asset returns in
2009.
Because the plan was underfunded in 2010, a contribution will be required for the 2010 plan
year. This contribution will not be due until September of 2011. Required contributions for the
2011 plan year will have to be made quarterly, so the first one should have been made last
month.
As of January 1, 2010, the AFN indicates the funded level of the A Plan is 96.44%. This
compares with funded levels of 142% in 2008 and 104% in 2009. This decline in the funded
level can be attributed to the following factors:
· The January 2008 figure was artificially high due to the change in the mandatory
retirement age, accompanied with an increase in the discount rate used to calculate the
present value of the benefits earned under the plan.
· The high funded levels for IRC purposes in 2008 and 2009 meant that no A Plan
contributions were required for those plan years, nor were any made.
· Because additional pension benefits are being earned each year, and because previously
accrued benefits move “one year closer to being paid,” there is a natural tendency for the
funded level to decrease unless contributions are made to the plan. This tendency was
counteracted to some extent in the January 2010 figure by above average asset returns in
2009.
Because the plan was underfunded in 2010, a contribution will be required for the 2010 plan
year. This contribution will not be due until September of 2011. Required contributions for the
2011 plan year will have to be made quarterly, so the first one should have been made last
month.
Q How does rate of return help fund the amount of money required in the bucket?
A If the A-Plan were 100% funded today, a 9% rate of return would be sufficient to fully fund the pension
Q What has been the rate of return of the A-Plan for the last several years?
A The rate of return in 2003 was 23%. The rate of return in 2004 was 17%. In the last ten years, the average asset return was 13.3%. These are excellent rates of returns on the funds invested by the A-Plan.
My point is the "A" plan is not some gigantic unfunded mess, to replace it with a DC plan would require small contributions into a 401K.
07-26-2011 | 08:01 AM
#352
Indian Takeout Driver
Joined: Mar 2006
Posts: 1,566
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From: FAR part 347 (91+121+135)
wow, so let me get this straight.. EVERYONE at eagle prior to Oct, 2011.... i.e., just about everyone at eagle IS ENTITLED to a job at AA? So this pretty much ends the hiring prospects then, eh?
07-26-2011 | 08:31 AM
#353
Banned
Joined: Jun 2008
Posts: 8,350
Likes: 0
Once they're done with recall attempts for those furloughed (November ?), then about 250 Eagle pilots already with AA numbers are eligible, although some will pass. Plan on late spring/early summer befor they are exhausted and new-hires MAY be needed.
At that point there is supposedly a group of 800 or so at Eagle pilots that get 50% of any new-hire class, so there still should be hiring off the street next summer at AA, but how many is the question. For the next few years, retirements are modest and the new flight/duty regs will not require that many more pilots if a new contract has the additional flying/per pilot it's expected to have. The new agreement that supposedly gives all Eagle pilots a shot at AA (35% max/class though), is so full of holes, it's probably worthless.
I'd expect an application window sometime around Febreuary of next year, but that's a SWAG.
07-26-2011 | 09:13 AM
#354
Indian Takeout Driver
Joined: Mar 2006
Posts: 1,566
Likes: 0
From: FAR part 347 (91+121+135)
No.
Once they're done with recall attempts for those furloughed (November ?), then about 250 Eagle pilots already with AA numbers are eligible, although some will pass. Plan on late spring/early summer befor they are exhausted and new-hires MAY be needed.
At that point there is supposedly a group of 800 or so at Eagle pilots that get 50% of any new-hire class, so there still should be hiring off the street next summer at AA, but how many is the question. For the next few years, retirements are modest and the new flight/duty regs will not require that many more pilots if a new contract has the additional flying/per pilot it's expected to have. The new agreement that supposedly gives all Eagle pilots a shot at AA (35% max/class though), is so full of holes, it's probably worthless.
I'd expect an application window sometime around Febreuary of next year, but that's a SWAG.
Once they're done with recall attempts for those furloughed (November ?), then about 250 Eagle pilots already with AA numbers are eligible, although some will pass. Plan on late spring/early summer befor they are exhausted and new-hires MAY be needed.
At that point there is supposedly a group of 800 or so at Eagle pilots that get 50% of any new-hire class, so there still should be hiring off the street next summer at AA, but how many is the question. For the next few years, retirements are modest and the new flight/duty regs will not require that many more pilots if a new contract has the additional flying/per pilot it's expected to have. The new agreement that supposedly gives all Eagle pilots a shot at AA (35% max/class though), is so full of holes, it's probably worthless.
I'd expect an application window sometime around Febreuary of next year, but that's a SWAG.
ok.. thanks... /sigh of relief
07-26-2011 | 09:38 AM
#355
Underpaid...
Joined: Nov 2010
Posts: 2,101
Likes: 0
From: French-Canadian
Is a minimum of 35% of AA classes and that is after the 824. Also if Eagle losses flying and puts pilots on the street then they will bump the numbers to 50% of classes at AA. I do agree the agreement might not be worth more than the paper is written on but we will see.
07-26-2011 | 10:12 AM
#357
Banned
Joined: Jun 2008
Posts: 8,350
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I'm told the bump from 35% to 50% is not a requirement, but is at AMR's descretion. Not sure if that's true, but regardless, it's going to be slow going for Eagle pilots movement to AA with the exception of those already with AA numbers and the more senior of the 800 group.
07-26-2011 | 10:14 AM
#358
Banned
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Posts: 8,350
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07-26-2011 | 01:40 PM
#360
Line Holder
Joined: Sep 2006
Posts: 45
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From: Doggy Style
Are these percentages interviews for a job at AA or is the job simply handed to the next person in line? Also, is this any kind of contractual agreement between the unions/airlines or something else all together?
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