Summary Box: American Airlines to freeze pensions

AP News

3/7/2012 1:42:00 PM - AP News

CHANGE IN PLAN: American Airlines said Wednesday that it won't seek to end traditional pensions as part of its bankruptcy overhaul, but wants to freeze them instead.

FROZEN, NOT DEAD: Employees keep current pensions but won't earn additional benefits. For employees entering peak earning years, pensions won't be as big as hoped.

GOVERNMENT RELIEF: It's a relief for the Pension Benefit Guaranty Corp., which insures traditional pensions. The PBGC attacked American for seeking to terminate plans covering 130,000 current and former employees. If American had ended them, it would have dumped billions of dollars in obligations on the agency.