Feds: American Airlines Underpaid On Pensions

DALLAS (AP) – Federal officials say that American Airlines contributed only $6.5 million of the $100 million it was supposed to pay into employee pension plans this week.

The Pension Benefit Guaranty Corp. called the underpayment “a disturbing development.

American and its parent company filed for bankruptcy protection in November. The director of the pension-insurance agency has warned American not to terminate its pension plans.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • http://fortworthinsight.com/news/feds-american-airlines-underpaid-on-pensions/ Feds: American Airlines Underpaid On Pensions « Fort Worth News Feeds

    […] Go to News Source […]

  • susan

    “disturbing” is not the word for it..disastrous” is more like it..i know that aa has the bankruptcy court guiding them through this, but they also have high powered attornies and have leeway in some areas..i am a concerned retiree with an already very small pension..if it goes away or gets smaller, i will be on the corner with an “i will work for food ” sign!!!

  • James

    Yep – AA is bankrupt! The entire purpose of that federal agency is to take over the underfunded pensions of bankrupt firms. I don’t understand why they are raising such a big issue over it now, when other large airlines did the exact same thing a decade ago. At least AA tried to avoid going down this road.

  • susan

    the issue is being raised now because aa assured the federal guaranty group they had enough funding to cover pensions, and the federal guaranty group said they did not want to step in because of it..other carriers who have gone into the bankruptcy court have had little or no assets to fall back upon and their oension funds were at 0.00..it is not exactly the same thing…..

  • http://fortworthinsight.com/news/american-to-cut-13000-jobs-close-alliance-facility/ American To Cut 13,000 Jobs, Close Alliance Facility « Fort Worth News Feeds

    […] In addition to changing or ending pension plans, with the bankruptcy filing and company ‘restructuring’, many are predicting an announcement of AA job cuts, and there are reports some U.S. maintenance positions may be moved overseas. […]

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