American Airlines will keep current pensions for retirees, not eliminate them
DALLAS (AP) — American Airlines will freeze pensions for most workers instead of terminating them as the company reorganizes under bankruptcy protection. American told employees of the decision Wednesday. The freeze will not apply to pilots because the company fears that it could prompt too many pilots to retire, leaving the airline without enough pilots to operate. Last month American said it would terminate pension plans for 130,000 current and retired employees and hand over the plans' assets and obligations for future payments to a government agency. The airline's unions and the U.S. Pension Benefit Guaranty Corp. opposed the plan to terminate pensions, which would have needed approval from a bankruptcy judge. American is Tulsa's largest employer. Copyright 2012 The Associated Press.