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Possible Pension Cuts Has AA Retirees Worried

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The potential fallout from American Airlines layoffs is affecting all workers including those who have retired from the company.

Pensions could be reduced or cut as part of the bankruptcy process.

Hershel Thompson has been retired from American Airlines for 13 years and while retirement is treating him well, he's beginning to get nervous about his future.

"If they took all of it, I would probably have to see if McDonalds had a dishwashing job," Thompson jokes.

This retiree thought his future was set in stone.
           
"As big as they are you think they are going to be there forever I don't have to worry, I probably didn't set back enough money that I should have," says Thompson.

With the talk of layoffs, possible pay and pension cuts he admits he is worried.

"American Airlines is trying to turn the pension plans over to the PBGC," says Transport Workers Union Organizer, Rick Mullings.

That's the Pension Benefit Guarantee Corporation, that Mullings says is set up by the federal government to protect pensions.
     
He says while nothing is concrete yet retirees, like Thompson, probably don't have to worry. It's current employees that may want to rethink retirement.

"If they turn those over then their pension is froze right where it is and they won't be able to gain any more," says Mullings.

Thompson says he will stop worrying when all is said and done and in the meantime he has some creative thinking to do.

"Everything is hush, hush, there's no rumors, maybe I should start a rumor you think?" says Thompson.

The president of the Retiree's Association says he's been getting a lot of calls from other retired American Airline workers that are concerned. He says they shouldn't be worried because he says he trusts the union to stand up for the workers.

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