Dow Jones Business News
Retired US Airways Pilots File Suit Against PBGC
Monday November 17, 1:29 pm ET
WASHINGTON (Dow Jones)--Retired pilots of US Airways have filed a lawsuit against the Pension Benefit Guaranty Corp. and the carrier.
The Soaring Eagles, which is the retired pilots association of US Airways, filed the suit Monday in U.S. district court in Washington, according to Sherwin Kaplan, a lawyer for the group.
The suit seeks a restraining order and preliminary injunction compelling the federal agency to correct a series of underpayments in the pensions paid to the pilots, Kaplan said.
The Soaring Eagles want the court to require the PBGC to pay either the amount of benefits guaranteed by law or 90% of the retiree's prior payment. For those whose prior payment was less than the guaranteed amount, the group wants the agency to pay 100% of the benefit.
Kaplan says the suit asks the company to give the pension agency all the information it needs.
In their suit, the retired pilots also alleged the PBGC and US Airways failed to disclose benefits information that retirees and others are entitled to have.
The PBGC announced earlier this year it had become trustee of US Airways' pension plan for pilots and would assume responsibility for paying benefits to more than 6,000 pilots.
The agency guarantees payment of benefits to retirees participating in certain private-sector pension plans.
The PBGC did not have immediate comment. US Airways could not immediately be reached for comment.
Retired US Airways Pilots File Suit Against PBGC
Monday November 17, 1:29 pm ET
WASHINGTON (Dow Jones)--Retired pilots of US Airways have filed a lawsuit against the Pension Benefit Guaranty Corp. and the carrier.
The Soaring Eagles, which is the retired pilots association of US Airways, filed the suit Monday in U.S. district court in Washington, according to Sherwin Kaplan, a lawyer for the group.
The suit seeks a restraining order and preliminary injunction compelling the federal agency to correct a series of underpayments in the pensions paid to the pilots, Kaplan said.
The Soaring Eagles want the court to require the PBGC to pay either the amount of benefits guaranteed by law or 90% of the retiree's prior payment. For those whose prior payment was less than the guaranteed amount, the group wants the agency to pay 100% of the benefit.
Kaplan says the suit asks the company to give the pension agency all the information it needs.
In their suit, the retired pilots also alleged the PBGC and US Airways failed to disclose benefits information that retirees and others are entitled to have.
The PBGC announced earlier this year it had become trustee of US Airways' pension plan for pilots and would assume responsibility for paying benefits to more than 6,000 pilots.
The agency guarantees payment of benefits to retirees participating in certain private-sector pension plans.
The PBGC did not have immediate comment. US Airways could not immediately be reached for comment.
