A judge handling the ongoing bankruptcy of American Airlines Inc. and its parent company has approved a plan to modify the way retiring pilots can receive their pension benefits – as well as approving the airline's new contract with existing pilots.

The Dallas Morning News reports that U.S. Bankruptcy Judge Sean Lane approved a deal Wednesday which will eliminate an option that allowed some retiring pilots to receive the bulk of their pension benefits in one costly lump-sum payment.

Under the deal, those retirees will have to take their funds as a lifetime annuity payment.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.