Bobby;
The responses are somewhat misleading and basically and are very similar to how the company replied on what would become of the funds left over for the Supplimental Medical plan they termianted last year.
Rosen said;
1. The money in the trust is for purposes of paying retiree medical benefits and cannot under any circumstances either revert to AA, or be spent for its purposes or benefit.
Yes the money does not go back to the company,in that it does not go into the general fund, just like the funds from the supplimental medical plan however the company can use it to pay benefits, not neccisarily the benefits for the person on the account from which the funds were set aside. These funds may not be used by the company to buy airplanes, but they do benefit the company since they take the place of funds that would have otherwise come from the general fund to pay benefits. Its still a windfall for the company even though they are restricted to spending the money on benefits.
2. ,,,, Those funds must be used for payment for "retiree welfare benefits due to Participants under the terms of the plan,,,,,,
Question; Currently anyone who leaves the company only gets their contributions back, the matching funds remain and will not be used for that persons benefits since they left the plan, so as long as the company uses those funds for any participants benefits they are compliant correct? So the company would get to use the funds for other employees, again, these funds would offset what would otherwise come from the general fund , correct?
3. "exhaustion of these matching contributions on behalf of each employee does not waive or modify the retirees entitlement"
In other words if we have qualified by meeting the prefunding requirements and lets say our total funds are $10,000 but it would require $20,000 for the coverage the company has to pick up the expense and continue to provide coverage at no cost to us as long as we remain participants of the prefunding plan, correct?
3. ,,,,,,,as it is for those retiring under the plan without the new amendments".
So with the amendments (new contract)it's not true ?
4. ,, The only circumstance ,,,the Trust holding the prefunding contributions is terminated."
With the proposed amendments workers who do not retire within three months are effecively terminated from the trust correct?
With the proposed amendment we are consenting to have all those members terminated from the trust arent we?
One a member has their contributions returned they are terminated from the Trust correct?
All the matching funds would then be used for those who remain in the plan, correct?
So three months after ratification all the participants would be retirees, and all the funds in the plan would be used to provide those retirees benefits correct?
So the matching funds from the active workers who were terminated from the plan would be used to provide retirees benefits, correct?
The matching funds would probably not be used to provide active workers benefits, correct?
Basically the matching funds from active workers would be used to pay for current retiree benefits, the likelyhood of workers who remain on payroll after three months is nill. The company will in fact see a windfall because they will be able to use the match of workers who remain to pay for retiree benefits, these funds offset what would otherwise have to come from the General fund under current language correct?