AMR Seeks to End Pilots’ Lump-Sum Retirement Option
AMR Corp. filed papers asking the bankruptcy court to prevent pilots from retiring and taking lump-sum payment of retirement benefits.
Even if pilots vote in favor of a new contract when ballots are tabulated on Dec. 2, the airline could be thrown into chaos when the company emerges from bankruptcy protection, AMR said in Nov. 23 papers coming to the bankruptcy judge for considerations at a Dec. 19 hearing.
AMR’s existing pension plan allows several options when pilots retire. One is a lumpsum payment that could be seven figures for some pilots. Pension regulations prevent pilots from taking a lump sum so long as the company is in bankruptcy.