PBGC limits/ guarantees

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.

American Airlines wants to terminate the pensions of 130,000 workers as part of its bankruptcy proceeding. The move would be good for the company's balance sheet, but would it be good for America?

Retiree benefits aren't as secure as they used to be, as auto and airline workers and others have learned in recent years.

Tens of thousands of current and former employees at scores of religiously affiliated institutions across the country face the same fear, as nonprofits increasingly seek refuge in "church" pension plans to escape onerous financial obligations, according to Eric Loi, an attorney at the Washington D.C.-based Pension Rights Center.