49 replies to this topic

[limit]

BoeingBoy, on 09 March 2012 - 05:44 PM, said:

I think the problem is that people are looking for one answer that applies to everyone and there isn't a single answer.  Retiring at 55 or 60 or 65 with no penalty sounds fine, but if a person is 35 when the plan is terminated/frozen it doesn't matter to them.  In effect, if the plans are terminated/frozen the benefit is calculated on the date of termination/freeze.  That will be different for each employee.

And Jersey777, the PBGC was playing fast and loose with it's language when it said that there would be a reduction from normal retirement benefits with a termination/freeze.  As I said, everyone should know that a termination/freeze stops the accrual of benefits, so of course the benefit would be left that if benefits continued to accrue.  It's just more of the fear mongering the new PBGC director is engaged in while trying to convince everyone that AA shouldn't receive the same benefit of bankruptcy that every one of it's competitors received.   Don't mistake his attemp to keep the PBGC from inheriting more liabilities for any sympathy for the employees of AA.  He's looking out for no one but the PBGC.

Jim

Very well said.

[BoeingBoy]

dfw gen, on 09 March 2012 - 06:03 PM, said:

One question what happens to your retirement if you are under 45 years old and its terminated and sent to the pbgc.?

Again, there is not necessarily a single answer.  If you're vested in the plan you would get something from the PBGC.  How much depends on the plan calculations vs the PBGC guaranteed maximum and when you start collecting it, although more than likely the PBGC maximum wouldn't apply.

JIm