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The retirees have formed an organization, the AMR Retirees Pension Protection Corp., "for the purpose of protecting the retiree benefits and pension benefits" they earned while working for the businesses, according to the Dallas Morning News. In a filing, the group asked U.S. Bankruptcy Judge Sean Lane to appoint a retiree committee "to act as the authorized representative of non-union retirees" in the case. The Pension Benefit Guaranty Corporation (PBGC) this week pushed back on what it says are misleading statements to American Airlines employees by its management about their pension plans. American's recent statements, through its lead bankruptcy counsel and in employee communications, have signaled the airline's intent to dump its retirement obligations on the PBGC, the agency claims. "American said nothing's been decided yet, but didn't even bother to pretend that it was trying to preserve its employees' pensions," said J. Jioni Palmer, PBGC's director of communications. Last week it was reported that AMR made only a small fraction of the roughly $100 million payment it was scheduled to contribute to the company's employee pension plans (see American Airlines Makes Reduced Pension Payment). A recent letter to employees from management downplayed the serious consequences of what could happen if the company terminated its pension plans, Palmer said. The letter ignored that PBGC doesn't insure retiree health benefits, which are usually canceled when companies terminate pension plans.
The retirees have formed an organization, the AMR Retirees Pension Protection Corp., "for the purpose of protecting the retiree benefits and pension benefits" they earned while working for the businesses, according to the Dallas Morning News. In a filing, the group asked U.S. Bankruptcy Judge Sean Lane to appoint a retiree committee "to act as the authorized representative of non-union retirees" in the case.
The Pension Benefit Guaranty Corporation (PBGC) this week pushed back on what it says are misleading statements to American Airlines employees by its management about their pension plans. American's recent statements, through its lead bankruptcy counsel and in employee communications, have signaled the airline's intent to dump its retirement obligations on the PBGC, the agency claims. "American said nothing's been decided yet, but didn't even bother to pretend that it was trying to preserve its employees' pensions," said J. Jioni Palmer, PBGC's director of communications.
Last week it was reported that AMR made only a small fraction of the roughly $100 million payment it was scheduled to contribute to the company's employee pension plans (see American Airlines Makes Reduced Pension Payment).
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