More FASCISM: UAL gets to dump pension on US while individuals go to debtors hell for medical problems.
====UPDATE 1-US to assume pension plans at United Airlines
Fri Apr 22, 2005 02:31 PM ET
(Updates with announcement, details)
CHICAGO, April 22 (Reuters) - Bankrupt United Airlines reached an agreement with federal pension insurers on Friday to terminate its four employee retirement plans, which are underfunded by nearly $10 billion, the government said.
Under the deal, the Pension Benefit Guaranty Corp. will assume plans covering 120,000 employees. These include pilots, flight attendants, mechanics and ground workers and other workers at the second-largest airline.
United, the main unit of UAL Corp. (UALAQ.OB: Quote, Profile, Research) has sought to cut huge costs by eliminating its traditional pensions and negotiate cheaper deals. US Airways Group Inc. (UAIRQ.OB: Quote, Profile, Research) , also bankrupt, also dumped its union plans on the government.
The pension agency said the difference between promised benefits and assets in the four United plans is $9.8 billion. The government will guarantee retirement benefits totaling $6.6 billion.
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