American Airlines, PBGC strike deal on pension plans’ freeze

By Hazel Bradford, Pension & Investment

American Airlines parent AMR Corp, and the PBGC reached agreement on freezing three of the airline’s four defined benefit plans, and working toward freezing the pilots’ pension plan.

The agreement, filed with U.S. Bankruptcy Court in New York on May 4, “was an affirmation of what we had already committed to do,” said American spokesman Bruce Hicks.

The agreement removes PBGC’s threat of litigation as long as the pension plan freezes do not unravel as the airline addresses other parts of its collective bargaining agreements.

http://www.pionline.com/article/20120507

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