American seeks to cut pilot pension payment
11-27-2012, 09:16 AM
#1
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American seeks to cut pilot pension payment
American Airlines wants to cut lump-sum payments from pilot pension plan | LeveragedLoan.com
...American Airlines is seeking bankruptcy court approval to eliminate a lump-sum payment option under its pilot pension plan, in order to avoid a crippling wave of retirements as soon as the company exits Chapter 11... (more)
American Airlines wants to cut lump-sum payments from pilot pension plan | LeveragedLoan.com
...American Airlines is seeking bankruptcy court approval to eliminate a lump-sum payment option under its pilot pension plan, in order to avoid a crippling wave of retirements as soon as the company exits Chapter 11... (more)
American Airlines wants to cut lump-sum payments from pilot pension plan | LeveragedLoan.com
11-27-2012, 12:38 PM
#2
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Joined APC: Feb 2009
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Wouldn't an official termination of the lump sum go ahead and incentivize all those "pent up retirements" to leave, since they might as well start collecting their now "maxed out" annuity instead of working?
Seems like AMR crew planning is hosed either way!?!?!
Seems like AMR crew planning is hosed either way!?!?!
11-27-2012, 03:24 PM
#3
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Joined APC: Jul 2012
Posts: 737
The lump sum option vanished the day after AMR declared BK. I guess what we have here are papers filed to make it "official" prior to exiting BK.
No one expected a lump sum option to somehow come back. The LBFO and microwaved LBFO II have no provisions for it.
I have a friend who was going to retire prior to BK. Due to a paperwork snafu, it didn't go through, got slipped for a month, and then comes BK and no lump sum. He is smoking hot about it, but there's nothing he can do.
No one expected a lump sum option to somehow come back. The LBFO and microwaved LBFO II have no provisions for it.
I have a friend who was going to retire prior to BK. Due to a paperwork snafu, it didn't go through, got slipped for a month, and then comes BK and no lump sum. He is smoking hot about it, but there's nothing he can do.
11-29-2012, 07:30 PM
#4
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Joined APC: Feb 2008
Posts: 19,704
The lump sum option vanished the day after AMR declared BK. I guess what we have here are papers filed to make it "official" prior to exiting BK.
No one expected a lump sum option to somehow come back. The LBFO and microwaved LBFO II have no provisions for it.
I have a friend who was going to retire prior to BK. Due to a paperwork snafu, it didn't go through, got slipped for a month, and then comes BK and no lump sum. He is smoking hot about it, but there's nothing he can do.
No one expected a lump sum option to somehow come back. The LBFO and microwaved LBFO II have no provisions for it.
I have a friend who was going to retire prior to BK. Due to a paperwork snafu, it didn't go through, got slipped for a month, and then comes BK and no lump sum. He is smoking hot about it, but there's nothing he can do.
11-30-2012, 07:48 AM
#6
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Posts: 172
Didn't APA already agree to a freeze of the plan instead of a termination? Also the "A" scale pilots were guaranteed that their retirement would never be touched in exchange for their sell out on "B" scale and the remaining "A" scale pilots have "lawyered up" to fight the company. As the loss of the lump has been a foregone conclusion. The big question for the most senior pilots that remain is exactly how much will they lose as the assets of the "B" fund are distributed and exactly when and how this will take place. What is said is not necessarily what will happen. Some of the most senior pilots have in excess of 1.5 million in the fund. Hope it works out for them.
12-01-2012, 07:26 AM
#7
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Posts: 19,704
If the court does nothing the lump sum option returns the day the company exits chapter 11 if the plan has sufficient funding to not be considered in distress by the PBGC. It appears from the funding levels posted here the plan is well above that threshold. The companies only option is to get the court to modify the plan in chapter 11. There are standards for such a modification. I am not sure the plan would meet those standards so what the court rules could be interesting. I don't think the court can consider manning issues at the airline in making the decision however judges in Chapter 11 cases are often given almost god like latitude in making rulings so who knows.
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