Yes, public pension plans are ripe for reform. But overhauling these plans is an opportunity to improve pension design for everyone.

"A steadily growing portion of the workforce will continue to work at least part-time well beyond the 'normal' retirement age of 65," says a senior research fellow at the New America Foundation.

American Airlines floated the idea of eliminating pension programs for workers to help its financial situation. But now the airline is backing away from that idea.

It looks like the bankrupt airline could hand over employee pensions to the Pension Benefit Guaranty Corporation. The PBGC's Josh Gotbaum talks about what would happen.