WASHINGTON — Pension Benefit Guaranty Corporation Director Josh Gotbaum released the following statement today on the agency granting American Airlines the ability to stop lump-sum payments under a new regulation for companies operating under bankruptcy court protection:
"This is what happens when government and business rolls up their sleeves to make things better. The new rule gives companies another way to preserve pensions."
In re AMR Corp et. al., No. 11-15463 (PBGC Statement filed December 14, 2012) (supporting American Airlines’ Motion for a finding that amending its pilots’ pension plan to eliminate lump-sum and installment forms of benefit is necessary to avoid a termination of the plan). [PDF]
PBGC protects the pension benefits of more than 40 million Americans in private-sector pension plans. The agency is directly responsible for paying the benefits of more than 1.5 million people in failed pension plans. PBGC receives no taxpayer dollars and never has. Its operations are financed by insurance premiums and with assets and recoveries from failed plans. For more information, visit PBGC.gov.