October 31, 2018
TO: AA Locals 501 – 591
RE: TWU Reserve/Equity Fund Distribution Update
Dear Brothers and Sisters:
Below is the summary with respect to the TWU Reserve/Equity fund distribution:
- The next equity distribution of $35,900,000 will be mailed out to eligible members on November 7. This distribution will follow the same methodology that was used previously, which was established by the Equity Committee.
- No different than before, the company must provide the necessary tax information to Computershare since TWU does not employ our members and TWU does not have the necessary individual tax payer information for each member 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. Eligible participants should ensure that Computershare has their current mailing address.
- 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:
- 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;
- For employees, deceased after 1/1/2018, American Airlines will issue a W2 with and will withhold applicable taxes; and
- For employees deceased prior to 1/1/2018, Computershare will issue a 1099 form and no taxes will be withheld.
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 Vice President