Torres v. American Airlines, Inc.

Plaintiffs brought this class action lawsuit on behalf of themselves and all participants and beneficiaries of American Airlines defined benefit pension plans (“Plans”) who are receiving an optional form of retirement benefit (other than a lump sum distribution). Plaintiffs allege that the alternative forms of benefit, such a joint and survivor annuities, are not the actuarial equivalent of the standard, single-life annuity offered under the Plans, in violation of the Employee Retirement Income Security Act of 1974 (“ERISA”). Retirees that select these alternative forms of benefits receive less in their monthly pension checks than they should as a result of the outdated actuarial formulas used by Defendants.  On August 7, 2019, the Court denied Defendants’ Motion to Dismiss the complaint, finding that the Complaint “alleged a plausible claim that  . . . Defendants fail to provide the participants and beneficiaries of the Plans with an actuarially equivalent benefit in violation of ERISA.”

The case was dismissed with prejudice on July 17, 2020.