Representing the Flight Attendants
of American Airlines

Representing the Flight Attendants of American Airlines

3.08.12 – (LAA) – Hard Freeze of Pensions

Hard Freeze Follow Up Hotline

This morning the company notified the APFA of an update to their term sheet. The company changed their proposal from terminating the pensions to a “hard freeze” of the pensions. Although we are encouraged that AMR management has made a small first step towards compromise, APFA’s professionals will evaluate the impact of a hard freeze on our membership’s unique demographics and interests. American Airlines Flight Attendants have sacrificed a great deal for this company and they each deserve fair treatment throughout reorganization. To that end, the APFA will perform our due diligence and continue to negotiate an early-out package to mitigate the proposed layoffs with a dignified solution. APFA is taking these negotiations very seriously and we look forward to resolving this dispute outside of bankruptcy court.

What is a “Hard-Freeze” for the pension?

Typically, a Hard-Freeze stops any future growth in a pension. All benefits accrued up to the negotiated Freeze-Date are protected. However, we have yet to receive a full explanation of how the Company defines a “hard freeze”. Also it remains to be seen if the current pension plan can be maintained without being more costly than a hard freeze along with the company’s proposed defined contribution plan.

We will continue to provide updates via this Hotline as additional information becomes available.



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