Year's worth of AA pilots retire in one day
09-06-2011, 02:21 AM
#63
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Joined APC: Oct 2010
Posts: 1,222
Originally Posted by Fishfreighter
Jumpseater said its because the AA pilots are pretty sure there's a bankruptcy in the near future.
Disclaimer: I don't work for AA, it's affiliates, or any airline in general. Just passing by!
09-07-2011, 06:41 AM
#64
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Joined APC: Jan 2007
Position: bus fo
Posts: 63
Somehow the bankruptcy rumor got started and has gained momentum. No one, union or management, has made any statement or implication that a filing is imminent. As to retirements, the rumor around the schoolhouse is bigger retirements for Oct. 1 (as in triple the Sep. 1 retirements).
09-07-2011, 07:24 AM
#65
Underpaid...
Joined APC: Nov 2010
Position: French-Canadian
Posts: 2,101
Originally Posted by LCCescapee
Somehow the bankruptcy rumor got started and has gained momentum. No one, union or management, has made any statement or implication that a filing is imminent. As to retirements, the rumor around the schoolhouse is bigger retirements for Oct. 1 (as in triple the Sep. 1 retirements).
09-07-2011, 07:40 AM
#66
Gets Weekends Off
Thread Starter
Joined APC: Feb 2011
Posts: 3,866
Originally Posted by LCCescapee
Somehow the bankruptcy rumor got started and has gained momentum. No one, union or management, has made any statement or implication that a filing is imminent.
"The above said, it is my personal opinion there exists a whole range of possible financial outcomes for AMR completely irrespective of the Section Six process. One of those possible outcomes is a Chapter 11 reorganization. I do not say this to scare you, or suggest Chapter 11 is a highly probable event. But it is very clearly a possibility going forward. And not necessarily because of an AMR minimum cash threshold, but instead and as stated by Mr. Agusti, to maximize shareholder value by lessening corporate cost structure and dismissing unwanted debt.
Yes, I know it sounds strange, however Chapter 11 can actually be a corporate strategy regardless of cash position and any pain inflicted upon employees during that reorganization process. Have no misconceptions and please rest assured, you and I will have virtually no say in this corporate decision should it occur. As they might say, “Hey, it’s just business.” "
09-07-2011, 10:40 AM
#68
No longer cares
Joined APC: Mar 2008
Position: 767er Captain
Posts: 12,109
Originally Posted by texaspilot76
Maybe the BK rumor was planted by management to get all the old coots to retire to cut down on labor costs.
09-07-2011, 10:51 AM
#69
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Joined APC: Feb 2006
Position: 767A (Ret)
Posts: 6,248
Originally Posted by tsquare
How does that help? The payscales still stop at 12 years, so there are very few that aren't pulling down the max... I guess if you count medical and all that, you might be right, but I'm guessing that just getting the old guys to leave doesn't help payroll all that much..
09-08-2011, 09:57 AM
#70
Gets Weekends Off
Joined APC: Apr 2006
Posts: 361
Originally Posted by Pineapple Guy
Can you point to any actual case where the PBGC did that, other than to recover funds as a result of an intentional "flushing" of the cash by those in control of the pension fund prior to seeking to terminate it?
That is NOT the case at AMR.
That is NOT the case at AMR.
ON THE OTHER HAND, THE LAW VESTS IN PBGC THE POWER TO SERVE AS TRUSTEE FOR TERMINATED PLANS. 29 U.S.C. SEC. 1342. WHEN SERVING AS TRUSTEE FOR A TERMINATED PLAN, PBGC IS SERVING PRIMARILY THE INTEREST OF THE PENSION PARTICIPANTS AND BENEFICIARIES OF THE PLAN IN THE SAME MANNER AND TO THE SAME DEGREE AS A NONGOVERNMENTAL PARTY APPOINTED TO THE SAME POSITION. U.S.C. SEC. 1342(D)(1)(A)(I). FOR EXAMPLE, WHEN SERVING AS TRUSTEE, PBGC MAY REQUIRE THE TRANSFER OF ALL OF THE ASSETS AND RECORDS OF THE PLAN TO ITSELF AS TRUSTEE, INVEST THE ASSETS IN ACCORDANCE WITH THE PROVISIONS OF THE PLAN, AND OPERATE THE PLAN SO AS NOT TO INCREASE ITS INSURANCE LIABILITY. FURTHERMORE, UPON APPLICATION AND APPROVAL OF THE COURT, PBGC MAY PAY PLAN BENEFITS, COLLECT AMOUNTS DUE THE PLAN, LITIGATE ON BEHALF OF THE PLAN, LIQUIDATE PLAN ASSETS AND RECAPTURE PRIOR PAYMENTS. SEE 29 U.S.C. SEC. 1342(D) GENERALLY FOR THE POWERS OF A TRUSTEE UNDER ERISA. APPOINTMENT, RETENTION AND COMPENSATION OF PROFESSIONAL SERVICES CONTRACTORS WHICH INCLUDE ATTORNEYS ARE TO BE DONE BY TRUSTEES IN ACCORDANCE WITH PBGC REGULATIONS. 29 U.S.C. SEC. 1342(H)(2).
Right now the PBGC outsources administration of most of their plans to the major consulting firms (Mercer, Hewitt, Towers). The people working on them collect data on ALL participants (retirees, term vesteds, and actives). They easily have the data to do what they legally can do.
Of course there is a chance they won't go for it if if comes to that. But retiring right now does not completely immunize you from your db benefits being seized by the PBGC in the advent of a shutdown.
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