Yes you can but you’ll pay the taxes on the withdrawal as well as a 10% tax penalty.

 

Sick: Use it or lose it. If it's some kind of PTO arrangement, it might get treated all or in part like vacay but that would be complicated.

Back Pay & Vacay: Fed guarantees protection up to a certain $ cap. Additional protections vary by state law, but in many places it will be treated as a priority, secured debt. But that's assuming there's any actual money left... If all the cash is gone, you might get pennies on the dollar a few years down the road. FAA will not allow airlines to operate without any cash reserves (Mx, safety), so one can assume a major airline will still have cash on hand when they file.

401k: It will go down just like if you quit or got fired. You keep your contributions, and any vested employer contribitions. Non-vested goes to the company.

I would *assume* that your union is researching this stuff wrt state law, and will inform everyone if it looks like it's happening. If that's not a good assumption, maybe ask your reps about it.

 

In regards to sick, our CBA has separation and retirement payouts of sick time. Certain percentage of your bank based on years of service for those starting with 10 or more years. How would that work in a liquidation? Same as vacation?

 

Dart?

.....

 

Im not saying anyone on committee won’t know what happens to our sick time in a full liquidation seeing as we have a payout provision, but I put the odds pretty low anyone has this expertise.