The final determination as to the future of the Directed Account Plan and the 401(k) Plan is still not certain.
The TWA/American agreement calls for both plans to terminate, but at this point, an alternative solution is being worked out to maintain the DAP. Our objective is to provide the 2200 plus retirees and the active TWA Pilots the choice to remain in the Directed Account Plan with the same investment structure and procedures we have developed over the last eight years.
Regardless of plan termination or continuation, your assets are secure and at some point in the future, you will be given the opportunity to choose where you want those assets to be invested. Your choices will probably be to remain in the DAP, roll over to an IRA of your choice, or for active pilots, to roll over to an American plan.
Before you are required to make these important decisions, you will be provided with a communication package containing all of the necessary information to help you decide. Please read carefully all the plan mailings over the next few months.
The 401(k) Plan will most likely be terminated. You will be given the choice to roll your assets over (no tax event) to an IRA, an American plan for active pilots, or hopefully, to the Directed Account Plan (DAP). This will all be finalized over the next few months.