As we all know, AA wanted to do away with our defined pension plan and used bankruptcy as a platform to justify this. The PBGC was on our side and exposed the flawed argument that was proposed by AA. As with all of the questions we receive from the membership, the TWU514 looks to those…
Tag: Pension
IBT Pension Funds
Fund Name Status Date Deficiency Date Years to Deficiency Comments Suburban Teamsters of Northern Illinois Red 04/26/13 01/01/13 9 Plan in deficiency IBT Local 945 Red 03/31/13 01/01/13 4 Plan in deficiency for five years already, barred from paying lump sum benefits, advised that benefits may have to be reduced or adjusted down Cleveland Bakers…
Re: Retiree Pension Reform, Multi-Employer / Single Employer (AA)
Brothers & Sisters, I have been getting calls and e-mails referencing the below article about Retiree Pension Reform. This article is in reference to Multi-employer Retirement plans and does not impact the recently frozen (Single Employer) pension plan at AA. I hope this information helps to answer any questions you may have received Fraternally, Bobby…
Statement from PBGC Director Josh Gotbaum on American Airlines Announcement of Plan Freezes
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…
Summary Plan Description (SPD), Pension
A Summary Plan Description (SPD) is a summary of the benefits provided by one (1) or more plans. This summary must include all information required by ERISA, including a description of the benefits, eligibility requirements, funding arrangements, claims procedures, and participant rights under ERISA. You should refer to the SPD and Plan Document for questions…
Termination vs Freeze of Defined Benefit Plan
AMR has agreed to “freeze” the Retirement Benefit Plan of American Airlines, Inc. for Employees Represented by the Transport Workers Union (TWU) of America, AFL-CIO (“the Plan”). This is the alternative to terminating the Plan and turning it over to the Pension Benefit Guaranty Corporation (“PBGC”). Keeping the Plan up and running is advantageous to…
TWU Wins Freeze of Pension Plans at American Airlines
Dallas — In a major development in the ongoing AMR bankruptcy case, TWU members at American Airlines have won a freeze of current pension plans. “The company initially wanted to terminate our pension plan, shift the cost to the government, and put our members at risk,” said TWU International President James C. Little. “Our negotiating…
AMR – Pleading Update 1/13/2012 – Bankruptcy
Rule 2004 Motion of the Pension Benefit Guaranty Corporation The Pension Benefit Guaranty Corporation (“PBGC”) filed a motion for an order under Bankruptcy Rule 2004 directing AMR Corporation and its affiliates (“AMR”) to produce documents and authorizing the issuance of subpoenas for testimony relating to four single-employer defined-benefit plans (the “Pension Plans”) maintained by AMR…
PBGC Director Josh Gotbaum Responds to Comments Made by American Airlines’ Counsel Harvey Miller
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,…
Bankruptcy and PBCG, Payments and Retiree’s
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…