American Airlines Can't Escape Suit Over 1984 Mortality Table

Law360 (August 8, 2019, 4:27 PM EDT) -- American Airlines must face a proposed class action accusing it of shorting pensioners by using an outdated mortality table to calculate their benefits in violation of the Employee Retirement Income Security Act, a Texas federal judge has ruled.

In his order Wednesday, U.S. District Judge Reed O'Connor denied American Airlines Inc.'s bid to dismiss the ERISA suit brought by participants and beneficiaries of its retirement plans who chose not to take their benefits in the form of a single life annuity.

The pensioners adequately claimed that the airline's use of a 1984 mortality table and 5% interest rate assumption resulted in...

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