Today marked a big victory for American Airlines’ workers and retirees. American has reversed course and decided to keep the pension plans of its non-pilot employees. The pension plans will be frozen, which means that workers won’t earn additional benefits going forward. But they’ll get every dime of the benefits they’ve already earned. When companies terminate plans, many people see pension cuts because of legal limits on the amount PBGC is allowed to pay. Here’s what PBGC Director Josh Gotbaum had to say: “It is great progress and good news that American recognizes it can reorganize successfully and preserve its employees’ pension plans. We’re also glad the company is willing to work with us to preserve their pilot plan too.”
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