As if airlines weren't financially struggling enough with fuel prices and worldwide recession. Now (former) Continental Airlines pilots are accused of "sham divorces" to allow "ex-spouses" to collect lump sum pension benefits while the pilots continued flying. Huh?
OK, under law, divorcees are entitled to a portion of the pension benefits of their former spouses. Under the Continental retirement plan, this could be paid in a lump sum. So the couples got divorced, the ex-spouse got a lump sum distribution, and the employee continued to fly and collect a salary. After the lump sum payments were made, the couples remarried.
Continental sued nine pilots who allegedly bilked the airline pension fund for nearly $11 million. Most of the pilots were also fired.
So, what's next? A fee for extra baggage, a fee for pillows and blankets onboard, a fee for drinks/snacks, and a fee to recoup swindled pension funds?
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