United (Airlines) May Replace(Cancel) Pension Plans

[RamboLiberal]

http://www.latimes.com/business/la-081904united_lat,1,360088,print.story?coll=la-home-headlines

United Airlines said today it probably would cancel its pension plans to help it emerge from bankruptcy proceedings, feeding the fears of thousands of retirees and current employees of the Chicago-based air carrier.

"This is not good news," said Redondo Beach resident John Givens, a former United reservations agent and union official who retired last year.

United, a subsidiary of UAL Corp., already has stopped making contributions to its four pension plans. The plans also are $8.3 billion short of what's needed to fund future retiree obligations, according to the Pension Benefit Guaranty Corp., which insures corporate pension plans.

United said in a Bankruptcy Court filing that because it badly needs cash to get out of Chapter 11, the "termination and replacement of United's defined-benefit pension plans likely will be required."

And US Air about to go bankrupt. ATA running out of cash. Fuel prices going up - what a Cheney up

[CarolynEC]

1. Don't worry, you and I will be left to foot the bill

There's a federal agency that insures pensions, kind of like the FDIC insures bank deposits.

Remember when the banks all failed during the S&L crisis, and it was up to Joe and Jane Workingstiff to pay for the bailout?

We may be headed for a similar scenario here, especially as other businesses turn to "bankruptcy" as a strategic move to jettison pension obligations and stay even with competitors who've done the same.

Ugh.

[TheCentepedeShoes]

3. If it works for one

the rest are sure to get on board!

[BlueCollar]

4. The "federal agency" you refer to is the PBGIC

Pension Benefit Guarantee Insurance Company...

and it will only "Bailout" or guarantee the pensions of people like myself....IF the PBGIC is fully funded by Congress.

Given the nature of this congress and administration, I don't see that happening...

A lot of people are going to ssee their life changed significantly

The pensions are supposed to supplement social security...if UAL gets away with it, and they may well do so, the ramifications for others who have "Defined Pension Plans" as opposed to 401K plans will be significant

[rfkrocks]

2. Bushworld

If your not rich you are f**ked-breaking the social contract-one citizen at a time-must read:kick:

[DemoTex]

5. Airline pensions are history ... (copying from the closed thread????)

US Airways set the example by getting the BK court to terminate the pilots' pension plan on 3/31/2003. The Bu$h administration turned their pointy heads, and other industries are drooling at the prospects now. The fucking cat is out of the bag. This is the biggest assault against the middle class, ever. Stupid, stupid airline pilots think they are white-collar workers that Bu$h will protect. Dumb fucks. Quote me.