When will the profit sharing be paid and how will we receive the payout?
Eligible employees will receive their individual profit sharing payouts via the same method as their regular payroll payments and will be dated March 13, 2014.
Who is eligible to receive the payout?
All American Airlines U.S.-based represented employees, agents, representatives and planners, support staff and managers levels 5 and below are eligible for 2013 profit sharing. Additionally, you must be in a participating workgroup during 2013 and on payroll as of March 13, 2014.
Are new hire employees eligible for profit sharing?
There is not a probationary period for profit sharing payout, only that an employee has American Airlines eligible earnings paid in 2013.
Do you need to be currently employed at American on the date of disbursement?
Yes. However, there are a few exceptions to be eligible for a payout such as, retirement, death, disability and involuntary layoff. In those situations, you do not have to be on payroll on the date of the profit sharing payout. In those cases, you are eligible to receive a payout based on eligible earnings for the time in which you were on American active payroll during 2013.
What if I took a voluntary early out? Am I eligible for the 2013 profit sharing payout?
No. Employees who voluntarily exited the company under a voluntary separation program are not eligible for profit sharing payouts.
I’m currently on leave of absence. Am I eligible for the 2013 profit sharing payout?
It depends on the type of leave of absence. The chart below gives you a good idea of which leaves are included:
| Leave type on at time of payout | Eligible to receive payout |
|---|---|
| Sick, IOD, Family-Other, PLOA with Reinstatement, Pilot Medical-Sick/IOD, Pilot LTD, IOD/FMLA, Maternity, Military, Family-Birth, Family-Self | Yes |
| Personal w/out Reinstatement, Educational | No |
What happens if I took a voluntary exit, and the next day retired?
You would not be eligible for a payout since your first event is the voluntary exit.
What percentage of the profit sharing pool applies to each employee group?
The profit sharing structure varies among employee groups as a result of the trade-offs made during restructuring:
- The plan for U.S.-based represented employees, agents, representatives and planners and support staff is based on sharing 5 percent of American’s pre-tax profits.
- The plan for U.S.-based management employees up to and including level 5 are in a plan based on sharing 10 percent of American’s pre-tax profits.
Why are non-management employees participating in a profit sharing plan that shares 5 percent of pre-tax earnings, while management levels 1-5 will share 10 percent of pre-tax earnings?
The company initially outlined profit sharing based on 15 percent of pre-tax earnings for all employees during our restructuring. However, to address the concerns and priorities that matter most to our pilots, flight attendants, TWU-represented employees and agents, representatives and planners, we reallocated some of the profit sharing income to provide other pay, benefit and work rule improvements. As a result of these trade-offs, the profit sharing plan for non-management employees is now based on sharing 5 percent of pre-tax earnings. The profit sharingplan for managers 1-5 is based on sharing 10 percent of American’s pre-tax income, which is aligned with US Airways at similar pre-tax margins.
How much has legacy American accrued for the 2013 profit sharing pool?
$85 million.
What will be the approximate value of my individual payout?
While it will vary slightly from employee to employee, represented employees, agents, representatives and planners and support staff can expect their profit sharing payout to be approximately 1.5 percent of their eligible earnings. Managers levels 1-5 can expect their profit sharing payout to be approximately 5 percent of their eligible earnings.
What are eligible earnings?
Eligible earnings include, but not limited to the following paid time, regular, vacation, holiday pay, sick time, premiums, overtime, etc. It does not include such pay as per diems; any type of expense reimbursement; moving and relocation expenses, income from stock transactions, bonus payments, lump sum payments, variable compensation payments, severance payments, settlement payments, etc.
Is there a minimum payout?
There is not a minimum payout for eligible legacy American employees.
Is the payout considered taxable?
Yes. The payout isconsidered wages for purposes of federal, state and local income taxes and FICA, and, therefore, is subject to required withholding of taxes. Supplemental tax rates will apply.
When was the last year profit sharing paid out?
The last year profit sharing payout was March 2001 for performance in 2000.
In which box of my W-2 will it appear?
The proceeds of yourshare grant will be included as ordinary income on your W-2.
In which box of my W-2 will the wages from my share grant be included?
You can expect the value of the shares distributed to you on Day 1 to appear in Box 1 as “Wages,” Box 3 as “Social Security wages” (up to the annual wage cap) and Box 5 as “Medicare wages.”
Who do I contact if I have questions regarding my W-2?
For questions regarding your W-2, please visit Jetnet’s W-2 FAQs
Are international employees eligible for the profit sharing payout?
Yes, most internationally-based legacy American employees are eligible for the profit sharing payout in March. Eligibility and payout dates may vary by country. Your local Human Resources team will communicate the specifics of your payout.
Will 401(k) deductions be made from the profit sharing payout?
Yes. We will make 401(k) deductions for the profit sharing payout. Beginning Feb. 18, employees had the opportunity to make a special deferral election to be applied to their profit sharing payout. The window closes Friday, Feb. 28 at 4 p.m. EST.
For legacy American employees, you may log into your J.P. Morgan account at retireonline.com. From the homepage, select the link for $uper $aver 401(k) Plan. Once there, select the “Contribution Amount” from the left Navigation Bar, and enter the percentage of your 2013 profit sharing payout that you would like to contribute to the plan. You may enter this amount in the fields marked “Special Election.” As with your regular contributions, you may make these contributions on a pre-tax, and/or Roth 401(k) basis. Please note: If you are age 50 or older, you may also elect to contribute a percentage of your profit sharing payout as catch-up contributions.
If you do NOT want to make a special election for your 2013 profit sharing payout, make sure you enter zero percent (0%) in the fields marked “Special Election.”
Are American Eagle Airlines employees eligible?
As announced to American Eagle Airlines employees on Feb. 18 all eligible full-time and part-time employees will receive 2013 profit sharing payment for approximately 0.76 percent of each individual’s qualified 2013 earnings. Those eligible, which includes all American Eagle employees up through Level 8, with the exception of EGS employees, will receive their payments on March 13.
What if I was an Eagle employee and moved to American mainline before the end of 2013?
To the extent an employee moves between organizations and meets the eligibility of each plan, they will be able to participate in both, on a pro-rata basis.
I have additional questions. Who can I email?
You may send your questions to people.compensation@aa.com and the team will do its best to get you an answer.