Last week, President Obama signed legislation to allow American Airlines’ employees to roll over bankruptcy contributions, also known as equity, into individual retirement accounts without tax penalties. TWU was at the forefront of the effort to introduce and pass this legislation.
The House bill was introduced by Rep. Mike Grimm (R-NY) while Sens. James Inhofe (R-OK) and Sherrod Brown (D-OH) sponsored its Senate counterpart. TWU would like to thank these lawmakers for their leadership on this issue as well as those on both sides of the aisle who voted to help protect retirement security for American Airlines employees.
Early in 2013, TWU helped to facilitate a meeting—along with the Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA), and American Airlines Government Affairs Department—at Rep. Grimm’s office. The purpose of the meeting was to brainstorm about finding a way to prevent American Airlines employees from paying a tax penalty on their bankruptcy settlement payments. Rep. Grimm had expressed interest in offering a legislative solution to protect the airline’s employees, who had already sacrificed so much prior to and during the bankruptcy. The three unions, in conjunction with American Airlines itself, agreed to work together to seek co-sponsors and support for what became HR 2591.
As a result of these efforts, American Airlines’ workers will now enjoy the same tax treatment that was extended to employees of other domestic airlines which went through bankruptcy prior to 2008.
TWU is proud to have been a partner in this fight.
The Transport Workers Union of America (TWU) represents 200,000 workers and retirees in commercial aviation, public transportation and passenger railroads. The union is an affiliate of the AFL-CIO.
Transport Workers Union of America, AFL-CIO
501 3rd St NW / Floor 9 / Washington, D.C. 20001
Tel: 202.719.3900 / www.twu.org
Harry Lombardo, International President / John Samuelsen, International Executive Vice President / Alex Garcia, International Secretary-Treasurer / John Bland, International Administrative Vice President / Gary Maslanka, International Administrative Vice President