On Thursday, American Airlines officials proposed at the negotiating table that American eliminate the B Plan in favor of the pilots' 401(k). Each pilot's current B Plan balance and the company contribution of 11 percent of a pilot's eligible pay would go into the 401(k) instead.
American spokeswoman Tami McLallen said the pilots would get the same money they get now and could choose to have American Beacon invest the funds, much the same as the investment manager does with their B Plan money, or pick the other investment choices in the 401(k).
Moving to the 401(k) would reduce administrative costs and simplify matters for both the airline and pilots and give pilots more flexibility in managing their retirement money, she said.
But it would eliminate the 90-day window flexibility upon retirement.
An Allied Pilots Association spokesman said the union would review the proposal before commenting.
In addition to the B Plan, American's pilots also participate in the A Plan, a defined-benefit pension.