American Airlines Changes Retirement Plan

American Airlines continues to look for ways to save money. Their latest move is to cut the company’s health insurance plan for retirees. This change will go into effect at the end of 2009. For American Airlines retirees to keep their coverage, they’ll need to pay full price.

Employees under the age of 65 will continue receiving health insurance, however their insurance will end once they hit age 65. Some of the company’s union employees aren’t affected by this news.

In defending the move, American Airlines pointed out that their competitors offer similar health care related packages. That said, American Airlines pointed out that they may still have to cut costs related to medical expenses.

For retirees, this is more proof that nothing is guaranteed. Even if you are receiving health care from your former employer during retirement, that doesn’t mean you can count on that coverage forever.

As for American Airlines, it’s difficult to blame the company too much considering that they are struggling to survive these turbulent economic times.

American Airlines (Image: Flickr)