As part of the implementation of the recently ratified JCBA, starting with May 1 paychecks, TWU-IAM-represented team members will receive an increased company contribution in their 401(k) plans.
While this change has gone into effect, you won’t see it reflected in your paycheck. Instead, you’ll see a monthly deposit made to your Fidelity account by the 10th of each month for the prior month’s eligible earnings. This contribution will be visible in your 401(k) account with Fidelity the day after the deposit.
For example, company contributions for eligible earnings in May paychecks (including your May 1, May 15, and May 29 paychecks) will be deposited by June 10, and you should be able to see them in your Fidelity account no later than June 11. This pattern will continue until the JCBA company contributions and matching contributions have been programmed, which will be completed no later than Jan. 1, 2021, and will then allow you to see contributions reflected in your paycheck. The one exception is that any company contributions made in December will be deposited by Dec. 31.
Please note that while the May 1 paycheck includes some hours worked in April, you’ll still receive a company contribution based on the new, higher JCBA rate for all hours included in that paycheck.
Here’s how the new contributions break down for Association members:
For TWU-designated team members
- Starting May 1 and until the JCBA contributions have been programmed, the company’s contribution to your 401(k) plan will increase from the 5.5% match to a 9% company contribution. You’ll receive the 9% even if you don’t personally contribute to the plan.
- After the JCBA contributions have been programmed, by Jan. 1, 2021, American’s contribution will be up to 9%. You’ll receive 5% whether you contribute to the plan or not, and up to an additional 4% will be a matching contribution.
For IAM-designated team members
- Starting May 1, contribution rates to the IAM National Pension Plan (NPP) will be increased to JCBA rates, which are the equivalent of a 5% company contribution.
- Starting May 1 and until the JCBA contributions have been programmed, American’s contribution to your 401(k) plan will increase from 0% to 4%. You’ll receive this amount even if you don’t personally contribute to the plan.
- After the JCBA contributions have been programmed, by Jan. 1, 2021, American’s contribution will change to a matching contribution of up to 4%.
In the event there is a discrepancy between the information in this communication and the American Airlines 401(k) Plan documents, the plan documents will govern.
If you have any further questions, please email my401k@aa.com.
Q: How will my paycheck look different starting May 1?
A: If you are a TWU-designated team member, your paycheck previously had a line item showing the company was matching up to 5.5% of your employee contribution to your 401(k). Starting May 1, that line item will no longer appear on your paycheck. Instead of the 5.5% company match, American is contributing 9%, but the increased contribution will be reflected on the Fidelity website and in your Fidelity statements.
Q: If I have elected the special voluntary leave of absence (VLOA), will I still receive the increased contributions to my Fidelity 401(k)?
A: Yes. American will continue to contribute 4% for IAM-designated team members and 9% for TWU-designated team members taking a special VLOA. However, the contribution will be based on your reduced wages.
Q: If I have elected the special voluntary early out program (VEOP), will I still receive the increased contributions to my Fidelity 401(k)?
A: It depends. If you have elected to receive incremental paychecks through the 12 months following your separation from the company, yes, American will continue to contribute 4% for IAM-designated team members and 9% for TWU-designated team members. The contributions will be based on the reduced wages. However, if you have elected the lump sum payout special VEOP, you will not be eligible for continued company contributions.
Q; If I choose to contribute to my 401(k), will my contribution still be viewable on my paystub?
A: Yes, you will continue to see the contributions you make to your 401(k) account on your paystub.
Q: Will the increased company contributions affect my taxes or tax rates?
A: No, company contributions are not reported on your W-2.