Older Pilots Cry Foul

Northwest Airlines asked a federal judge this week to let the company adjust pension contributions, to allow more for younger pilots who suffered disproportionately from the company's post-bankruptcy shift to a 401K plan.

Northwest and the Air Line Pilots Association have agreed to the plan, but a group of older pilots is crying age discrimination, reports The Associated Press.

When Northwest froze pensions and started a 401K plan, its most experienced pilots had already maxed-out their pensions, but became eligible for the company's matching funds in their 401Ks at a high rate because their pay was high.

Meanwhile, newer pilots got pensions frozen with little invested, and got smaller contributions under the 401K... creating a wide gap.

Now, the company wants to boost its contributions to pilots with fewer years of make things more equitable. But the older pilots say that assumes they'll actually be paid their pensions, which could be cancelled at any time in a future bankruptcy.

Looking at recent airline history -- and a predicted steep downturn in airline fortunes for 2008 -- the concern certainly appears reasonable.

There's no word yet on when a decision in the case is forthcoming. The new 401K matching plan started December 1.

FMI: www.nwa.com, www.alpa.org