[firm] blog logo

8th Circuit Rules that the Northwest Airlines Post-Bankruptcy Retirement Plan does not Violate ERISA or the ADEA

In affirming the district court’s ruling, the Eighth Circuit Federal Court of Appeals recently held that Northwest Airline’s post-bankruptcy retirement benefit plan (referred to as the “MP3”) did not violate ERISA or the Age Discrimination in Employment Act (ADEA).  Following Northwest Airline’s bankruptcy in 2005, the company froze its traditional pension plan and agreed to make contributions on behalf of pilots to a retirement savings account (pro rata to pay).  The Air Line Pilots Association (the “Pilots Association”) determined that the frozen pension plan and pro rata to pay contributions led to significant disparity in retirement income between more senior pilots and pilots with less years of service under the frozen pension plan.  To address this concern, the Pilots Association and the company created the MP3, which allocated contributions so that all pilots, in combination with the frozen pension plan, would receive “an aggregate replacement income equal to approximately 50… Continue Reading

April 2012
S M T W T F S
« Mar   May »
1234567
891011121314
15161718192021
22232425262728
2930  

Archives