Originally Posted by
ForeverFO
The lump sum option vanished the day after AMR declared BK. I guess what we have here are papers filed to make it "official" prior to exiting BK.
No one expected a lump sum option to somehow come back. The LBFO and microwaved LBFO II have no provisions for it.
I have a friend who was going to retire prior to BK. Due to a paperwork snafu, it didn't go through, got slipped for a month, and then comes BK and no lump sum. He is smoking hot about it, but there's nothing he can do.
You can not end a lump sum option contractually. This falls under ERISA pension law. If AMR exits chapter 11 with the plan intact the lump sum option resumes unless there is a court order from the chapter 11 process modifying the plan. The. New contract would have no bearing on the issue. It's possible the court may rule against AMR on this issue. I think the standard they have to use is can the plan survive with the option intact. Staffing at the airLine should not be a consideration.