ALPA MEC CODE-A-PHONE UPDATE - January 28, 2004
This is Jack Stephan with a US Airways MEC update for Wednesday, January 28th, with two new items.
Item 1. ALPA and management representatives met today at company headquarters in Crystal City. Both parties were pleased with the productive exchange that occurred and have committed to continuing the dialog this week relating to company financial concerns and strategic initiatives.
While we acknowledge the desire of our membership for more information, it is important that we permit this fact finding process to fully develop. We will provide you with more detailed information at the conclusion of this information exchange with the company. Please refer to the code a phone and the web site for the latest developments.
Item 2. Today the U.S. Senate amended and passed H.R. 3108, The Pension Funding Equity Act. Senator Arlen Specter (R-PA) was not successful in his attempt to add an amendment to restore our defined benefit plan. No roll call vote was taken on the Specter amendment. Senator Specter did address the Senate on our behalf, and his staff worked tirelessly to prepare the amendment for introduction. In his remarks on the Senate floor, Senator Specter said he would revisit the restoration of our plan when the senate takes up additional pension legislation later in the year.
The pension legislation passed by the senate today will temporarily replace the discontinued 30-year Treasury bond interest rate used to calculate contribution levels of defined benefit plans with a rate based on a composite of long-term corporate bonds. This new rate would be used in 2004 and 2005 but will not apply to lump sum distributions, which will use the 30-year Treasury rate. The legislation will also give airlines and steel companies relief from the Deficit Reduction Contribution (DRC) payments currently required if the funded level of their defined benefit plans generally falls below 80%. The amount of the relief would be 80% in 2004 and 60% in 2005. To be eligible for this relief, a plan would be required to be considered fully-funded in 2000.
Respectfully,
USA320Pilot
This is Jack Stephan with a US Airways MEC update for Wednesday, January 28th, with two new items.
Item 1. ALPA and management representatives met today at company headquarters in Crystal City. Both parties were pleased with the productive exchange that occurred and have committed to continuing the dialog this week relating to company financial concerns and strategic initiatives.
While we acknowledge the desire of our membership for more information, it is important that we permit this fact finding process to fully develop. We will provide you with more detailed information at the conclusion of this information exchange with the company. Please refer to the code a phone and the web site for the latest developments.
Item 2. Today the U.S. Senate amended and passed H.R. 3108, The Pension Funding Equity Act. Senator Arlen Specter (R-PA) was not successful in his attempt to add an amendment to restore our defined benefit plan. No roll call vote was taken on the Specter amendment. Senator Specter did address the Senate on our behalf, and his staff worked tirelessly to prepare the amendment for introduction. In his remarks on the Senate floor, Senator Specter said he would revisit the restoration of our plan when the senate takes up additional pension legislation later in the year.
The pension legislation passed by the senate today will temporarily replace the discontinued 30-year Treasury bond interest rate used to calculate contribution levels of defined benefit plans with a rate based on a composite of long-term corporate bonds. This new rate would be used in 2004 and 2005 but will not apply to lump sum distributions, which will use the 30-year Treasury rate. The legislation will also give airlines and steel companies relief from the Deficit Reduction Contribution (DRC) payments currently required if the funded level of their defined benefit plans generally falls below 80%. The amount of the relief would be 80% in 2004 and 60% in 2005. To be eligible for this relief, a plan would be required to be considered fully-funded in 2000.
Respectfully,
USA320Pilot
