"Retirees of American Airlines parent AMR Corp.
could lose $1 billion in benefits
if the bankrupt carrier decides to end its four pension plans...
AMR's pension plans cover almost 130,000 participants,
but collectively had just $8.3 billion in assets
to cover about $18.5 billion in benefits...
Congress limited the size of pensions the PBGC
(Pension Benefit Guaranty Corp.) can pay for,
so AMR retirees should expect their pensions
to be dramatically cut...
..."As we did with Visteon, and with some plans at Delta
and Northwest Airlines,
we will encourage American to fix its financial problems
and still keep its pension plans," the agency said.
The PBGC added it recorded a $26 billion deficit
as a result of failed plans the agency has already assumed."