WASHINGTON — Pension Benefit Guaranty Corporation Director Josh Gotbaum released the following statement today on American Airlines’ decision to freeze all four of its pension plans, effective today: “Today marks a mixed result for the people of American Airlines. We of course are pleased that they will get to keep the pension benefits they have…
The PBGC filed an objection to the Debtors’ motion establishing procedures for settling certain claims. The PBGC objects to the provisions of the Debtors’ proposed procedures that would permit the Debtors to settle claims where the settlement amount is within 10% of the scheduled amount of the creditors claim, without court or creditor scrutiny, so…
American Airlines has announced it wants to end the pension plans of its 130,000 workers and retirees. The company will ask the bankruptcy court to transfer its pension obligations to PBGC. Pensions are promises made to working Americans who count on them for a secure retirement. Those promises should not be broken lightly. PBGC will…
MSNBC’s Lawrence O’Donnell explains how the bankruptcy of American Airlines shows us why voting for president is even more important than you think. Watch the video. This is a Must Watch Video.. Click Here: from The Last Word
The Pension Benefit Guaranty Corp. said it has placed liens on some of American Airlines’ assets in Texas and overseas since the carrier did not make its full $100 million pension payment due in January. The agency said it filed over 70 liens, totalling $91.7 million, on behalf of the four pension plans that American…
Please see the linked AA Pension & Retiree Medical Benefit Seminar Presentation -PDF This is not endorsed by the PBGC, but it was vetted through their legal department with the intent that it helps both them and the AA-TWU employees. Employees can always go to the pbgc website to drill down deeper into the issues.
When American Airlines filed for bankruptcy they took great pains to say to their customers that nothing will change, that they will still have their frequent flyer miles and service will continue. But they didn’t make the same promises to their employees about the future of their pensions. Recent comments by the company’s bankruptcy counsel,…
Q. If a plan is nearly fully funded, does the law allow PBGC to treat the plan differently as to payouts or is the non distressed status irrelevant? A. The PBGC treats all terminated plans the same, regardless of the level of the funding before termination. Q. If I am already retired can the bankruptcy…
The Pension Benefit Guarantee Corp. (PBGC) website is the best source for answers on retirement. You may want to look at that sites Q and A section. As of right now American has made no changes to the retirement plan in the TWU/AA agreement. It is expected that while in bankruptcy they will seek relief from the…
WASHINGTON — A watchdog report says the agency that insures pensions for millions of U.S. workers made serious errors in valuing pension plans for United Airlines employees and as a result some retirees may have received less than they were due. The report issued Wednesday by an assistant inspector general of the Pension Benefit Guaranty…