Tag Archives: pension benefit guaranty corporation

PBGC Says American Airlines Workers Should Worry About Pensions and Medical Care – So Should Taxpayers

The Pension Benefit Guaranty Corporation has called out what it says is misleading statements to American Airlines employees by its management about their pension plans under a bankruptcy reorganization. “American Airlines is telling their workers and retirees not to worry, … Continue reading

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American Airlines Files for Bankruptcy – Pensions Threatened?

American Airlines has four traditional pension plans that cover almost 130,000 participants. As of today, the plans collectively had only about $8.3 billion in assets to cover about $18.5 billion in benefits, according to the Pension Benefit Guaranty Corporation. If American Airlines were to end their plans, the agency would be responsible for paying about $17 billion in benefits; about $1 billion in benefits would be lost. Continue reading

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PBGC Sues Bendix for Pension Debt from Plant Closing

The action against German-owned Bendix is the first time PBGC has had to go to court to compel a company to cover pension obligations from a plant closing. Continue reading

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