Bankrupt carrier Northwest Airlines announced Thursday that it had reached an agreement with its retirees.
Under the terms of an agreement that was filed in bankruptcy court, retirees under the age of 65, who retired before Aug. 1, 2006, will be offered medical, prescription drug and dental coverage as part of the healthcare plan offered to Northwest's active employees.
The retirees will be required to contribute 50 percent of the cost of their medical coverage and 100 percent of the premiums for dental coverage, Northwest said.
Additionally, retirees over 65 who are participating in a company-sponsored medical plan, will be allowed to continue participation through the plan offered to retirees who are under 65 years of age.
The retirees are represented by a court appointed committee of retirees.
In 2006 the airline said that it would consider canceling its pension plans altogether if lawmakers did not pass legislation to give the company more time to fund their plans.
In August, the legislation was passed giving it, and Delta-Airlines more time to meet their obligations.
The airline is expected to complete its restructuring process and emerge from Chapter 11 in June.