ERISA

Most American Airlines employees can breathe a sigh of relief (sort of), now that the company has announced that it would not seek to terminate three out of four of its pension plans as part of its bankruptcy reorganization. Rather, the company will freeze those plans, meaning that employees will stop earning benefits after a certain date.

Quick question: When is a Jewish federation like a church? Answer: When it doesn’t have to fully protect its employees’ pensions.

Larry Kaplan is feeling anxious, and he’s not alone.Ten years ago, Kaplan retired from his position as a manager for nutrition services at Saint Peter’s University Hospital, and he now lives in Toms River with his wife, Gloria.

The Employee Retirement Income Security Act, known as ERISA, regulates most private-sector pensions. But it has always exempted plans operated directly by churches for their clergy and employees to make it easier for the churches to operate their plans.