Looks like pilot pension might be frozen...Lump sump might be gone

[Hopeful]

http://finance.yahoo.com/news/american-airlines-allied-pilots-association-231500008.html

 

[jimntx]

The article says that there will be a 60-day comment period before the new rule takes effect. I would expect an awful lot of retirements during that period while lump sum was still available. Gonna be a ugly summer.

 

[jersey777]

Isn't it amazing how this new rule is changing now?....right when AMR needs to pacify a certain work group? Oh, the power of corporations in this country!

 

[TWU informer]

ME TOO!

 

[FWAAA]

The article says that there will be a 60-day comment period before the new rule takes effect. I would expect an awful lot of retirements during that period while lump sum was still available. Gonna be a ugly summer.

The lump sum option has not been available to pilots since November 29. If this change in the regulations did not take effect, then the lump sum would again be available when AA emerged from Ch 11. Pilots retiring since AA filed for bankruptcy protection have not been able to withdraw their A plan balance as a lump sum. You may be right - it may be an ugly summer, but that ugliness won't be due to the lump sum option luring the pilots into retirement.

Isn't it amazing how this new rule is changing now?....right when AMR needs to pacify a certain work group? Oh, the power of corporations in this country!

Your take on this change in rule is out in left field.

Gotbaum is changing the regulation because current regulations do not permit the employer to remove the lump sum feature unless the plan is terminated, and Gotbaum really doesn't want AA terminating the plans. The change in rule protects hundreds of millions of dollars of already-earned and vested defined benefits for thousands of AA pilots - this change in rule has nothing to do with AA trying to pacify anyone; this change in rule is all about the PBGC satisfying union members (AA's pilots) and is all about saddling AA with huge legacy pension costs going forward when AA wanted to terminate them.

 

[jersey777]

The lump sum option has not been available to pilots since November 29. If this change in the regulations did not take effect, then the lump sum would again be available when AA emerged from Ch 11. Pilots retiring since AA filed for bankruptcy protection have not been able to withdraw their A plan balance as a lump sum. You may be right - it may be an ugly summer, but that ugliness won't be due to the lump sum option luring the pilots into retirement.


Your take on this change in rule is out in left field.

Gotbaum is changing the regulation because current regulations do not permit the employer to remove the lump sum feature unless the plan is terminated, and Gotbaum really doesn't want AA terminating the plans. The change in rule protects hundreds of millions of dollars of already-earned and vested defined benefits for thousands of AA pilots - this change in rule has nothing to do with AA trying to pacify anyone; this change in rule is all about the PBGC satisfying union members (AA's pilots) and is all about saddling AA with huge legacy pension costs going forward when AA wanted to terminate them.

Oh really?...That may be so but one of the changes the company touted in the their "last and best option" was to freeze the pilot pension rather then terminate it. Call it what you will but I say it was like dangling a carrot that AA had a hand in pulling out of the ground.