IRS Pension Rule Change Will Resonate Well Beyond AMR Case

Law360, New York (November 15, 2012, 7:48 PM EST) -- A key Internal Revenue Service rule change last week that allowed American Airlines parent AMR Corp. to freeze and retain pilot pension plans could change the face of labor relations in Chapter 11 cases of all sizes, experts said.

Pension benefit plans are a huge financial drain on distressed companies, and while Congress has given retirees a number of protections that make it difficult for companies to stiff them on benefits in any way, the joint rule change the IRS and the U.S. Department of the...
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