As you may recall, AMR filed a complaint asking the Bankruptcy Court to declare that none of AMR’s current retirees (both union and non-union) have a vested right to retiree medical benefits. Under ERISA, the health and welfare benefits the debtors provide to current retirees are welfare benefits and that these welfare benefits only vest…
Category: Retiree
AMERICAN AIRLINES INC. PROPOSAL TO THE RETIREE COMMITTEE TO MODIFY RETIREE MEDICAL AND LIFE INSURANCE BENEFITS 7-6-2012
American Airlines, Inc. (“Company”) proposes the following changes to retiree medical and life insurance benefits: Retiree medical option for age 65 and over will cease. Retirees will be offered access to purchase a guaranteed issue Medicare supplement plan through a third party administrator, to the extent available. Early retirees (non-pilots age 55 – 65 or…
Retiree Questions & Answers: AMR Bankruptcy – 7-6-2012
Added 7/6/2012 Q. What does it mean that American Airlines has made a proposal to the Retiree Committee? By making a proposal to the Retiree Committee, American Airlines has commenced the process to negotiate about changes in retiree medical and life insurance benefits for retirees. Added 7/6/2012 Q. Why is American Airlines making a proposal…