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AMR Bankruptcy May Cost Workers $1 Billion in Pension Benefits

Employees of AMR Corp., the parent of American Airlines that sought bankruptcy protection today, may lose about $1 billion in pension benefits if the airline terminates their plans, a U.S. agency said.

The Pension Benefit Guaranty Corp., created to protect private retirement benefits, may be unable to cover the loss because Congress has limited the size of pensions it can pay, Director Josh Gotbaum said today in a statement.