Dear Brothers and Sisters:
As a follow up to Friday’s conference call with TWU American Airlines
Presidents, below is a summary of the latest developments, with respect to
the TWU Reserve/Equity fund distribution:
• First and foremost, the next equity distribution of $35,900,000 is
expected to go out for distribution to eligible members in November.
This distribution will follow the same methodology that was used
previously, which was established by the Equity Committee.
• The company has notified TWU that it is on track to provide the
necessary tax payer information to Computershare for the November
distribution. No different than before, the company must provide this
information to Computershare, since TWU does not employ our
members and TWU does not have the necessary individual tax payer
information for each member needed for this type of distribution.
• The distribution of the funds from Computershare will be made by
check and mailed to each eligible employee’s last known address on
file with the Company.
• Also, the same as last time, a legal determination, in accordance with
IRS rules and regulations, has been requested with respect to the
withholding of income taxes on the equity distributions to be made in
accordance with the following formula:
1. For active employees and those on leave of absence, or those
who have since left the company via retirement, termination or
otherwise and are still alive, American Airlines will issue a W2 and
withhold applicable taxes;
2. For employees, deceased after 1/1/2018, American Airlines will
issue a W2 with and will withhold applicable taxes; and
3. For employees deceased prior to 1/1/2018, Computershare will
issue a 1099 form and no taxes will be withheld.
Let’s not forget that this equity distribution is not a bonus, nor does this
money repay us for the sacrifices we have been forced to endure through
bankruptcy or the airline’s merger; in order for American to become the
world’s largest airline.
TWU International will continue to provide any new or additional information
and details to you as soon as they become available.
TWU International Vice President