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On 11/24/2002 10:52:09 PM chipmunn wrote:
However, here is what I do know. By law the company can terminate the plan and only has to give a 60-day notice or the PBGC can distress terminate the plan today, if they desire.
If the plan is terminated either by the company or the PBGC, eligible employees would not receive their vested amount when they retire. Instead the employee would receive the PBGC reduced award at age 62 or the full PBGC benefit at age 65.
Chip [/FONT]
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I don't know if this will make it a bit clearer. The same event happened at TWA. The only exception, was that Carl Icahn's Pichin Corporation was responsible for funding the defined benefits programs, and there reached a point at which he was legally able to terminate them. Which he did.
Once TWA went away this triggered a point at which the PBGC notified us that we could then retire from TWA and start drawing our reduced PBGC benefits. If one was over 50 years old it was worth it to get paid the reduced benefits for life. I took the PBGC up on that, and have been receiving it ever since (well before the age of 55 at that time).
In the unfortunate instance that U would liquidate, I believe you could start drawing the PBGC amount fairly soon (depending on your age). I certainly hope that doesn't happen. Best wishes to the U crew. We don't need to lose yet another US airline logo from the skies.