APA: No lump sums for retiring American Airlines pilots now
Terry Maxon/Reporter <A href="http://aviationblog.dallasnews.com/authors.html#Terry Maxon/Reporter" rel=internal>
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6:42 PM on Wed., Nov. 30, 2011 |
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American Airlines had an abnormally high number of pilots retire recently as the stock market declined and fears about an AMR/American bankruptcy rose.
Pilots worried that AMR would file for bankruptcy headed out the doors, and took their pension from Plan A, the defined-benefit plan, as a lump sum.
It appears they may have made a wise choice. With American's and AMR's filing of bankruptcy papers Tuesday, that option is now foreclosed. Here's what the Allied Pilots Association advised its members Tuesday evening:
"Please be aware that today's Chapter 11 bankruptcy filing by AMR will block the A Plan lump sum option for pilots retiring today or thereafter. "If you have locked in a Benefit Commencement Date of Dec. 1 and would like to change to a later date, you must submit a new Pilot Election of Early Retirement Form or Revocation of Early Retirement Form no later than 3 p.m. Central tomorrow, Wednesday, Nov. 30.
"Otherwise, you will be retired effective Dec. 1 and will receive your A Plan benefit as an annuity. If the A Plan is subsequently terminated, the annuity would then become subject to Pension Benefit Guaranty Corporation limits."
Between Sept. 1 and Nov. 1, 2012, 308 pilots retired, or more than 100 a month. A lot of them took lump-sum distributions from the Plan A pension plan. By comparison, about 11 pilots on average retired each month in 2010.