Benefits & Executive Compensation News

American Airlines Fights Class Bid in Pension Calculation Spat

Jan. 21, 2020, 7:07 PM

American Airlines Inc. retirees challenging their pension calculations can’t maintain a class action because some proposed class members will have their benefits lowered if the lawsuit succeeds, the airline told the Northern District of Texas.

If the court adopts the retirees’ proposed mortality table, retirees with certain pension formats will see their benefits boosted, while other retirees will experience a loss in benefits, the airline said. This conflict means the case can’t be litigated as a certified class action, the airline said in a Jan. 17 motion.

The retirees accuse the airline of violating the Employee Retirement Income Security Act...

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