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American Contributes to Pension Plan

American Airlines put out a press release yesterday saying that they made a $75 million contribution to its employee pension plan.  Perhaps I’m the crazy one, but isn’t the company SUPPOSED to fund the pension plan?  Isn’t that like me putting out a press release noting that I tied my shoes this morning?  What the hell is going on?

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  1. If the current pension fund is large enough, it might be paying out less than or not much more than it’s current growth. Like an annuity. If the stock market does well, they might not have to put anything in, but if the market tanks, then they have to support it.

  2. Perhaps the “news worthiness” of this press release is the fact that most airlines ARE NOT making their pension play payments, but panning those plans off on taxpayers to pay. A little bit of good news is nice to hear every now and then.