SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RealMuLan who wrote (20098)1/1/2005 11:10:52 AM
From: RealMuLan  Read Replies (1) of 116555
 
U.S. Asks Bankruptcy Court to Deny United Pension Plan
By MARY WILLIAMS WALSH

Published: January 1, 2005

he government moved in bankruptcy court late Thursday to oppose an agreement that United Airlines recently struck with its pilots' union on the looming termination of the pilots' pension plan.

In a motion filed in federal bankruptcy court in Chicago, the Pension Benefit Guaranty Corporation accused United of attempting to circumvent the federal pension law with the agreement, and of offering its active pilots relief "at the expense of the federal government, its other employees and creditors."

Advertisement


When any company defaults on its pension obligations, the assets and liabilities of the defunct plan go to the pension agency, which pays the retirees their benefits within certain limits. The agency argued in its motion that Congress had created a legal framework for this process because it "foresaw the possibility of abuse of the pension insurance program," and that United's agreement with its pilots constituted such abuse and should be rejected by the court.

It was the second time in two days that the federal government has gone to court to try to stop the airline, a unit of the UAL Corporation, and its pilots' union from terminating the insolvent pension plan according to their own terms. Earlier on Thursday, the pension agency filed a complaint in the United States District Court in Chicago, asking the court to terminate the plan immediately and make it the sole trustee.

If United is able to delay the termination until next May - one provision of the agreement - the active pilots would qualify for a higher level of insurance coverage. Some retired pilots might get lesser amounts, however.

nytimes.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News