Senators Proposing Restoration of USAirways Pension Plan

2clippedwings

Veteran
Dec 24, 2002
562
4
PIT deportee
Received this morning from CLT F/A LOCAL:
Lautenberg Leads Bipartisan Group of Senators to Push for Restoring Airline Employee Pensions

Letter to PBGC asks Agency to Consider Restoring U.S. Airways Employee Pension Program

Tuesday, January 30, 2007

WASHINGTON, D.C. - Last night, United States Senator Frank R. Lautenberg (D-NJ), along with a bipartisan group of his colleagues, sent a letter to the head of the Pension Benefit Guarantee Corporation (PBGC), asking him to explore the possibility of restoring the terminated employee pension programs at U.S. Airways, in light of the airline’s substantially improved financial circumstances. The employee pension plans, which were under funded by $4.8 billion at the time of their termination, have since been assumed by the PBGC.
By law, PBGC has the authority to take such action if a company’s financial situation is improved. Earlier this month, US Airways offered to purchase the larger Delta Airlines for some $10.2 billion, including $5 billion in cash.

“If US Airways now clearly has ability to generate considerable cash and has easy access to credit markets, the company’s ability to restore its terminated pension plans must be fully explored. This is especially true in light of the fact that PBGC regulations would permit the restored plans to be funded over a period of up to 30 years, which is an even longer funding period than airlines are afforded under the Pension Protection Act of 2006,â€￾ the lawmakers wrote.

In addition, US Airways has offered to pay $10.2 billion - including $5 billion of cash - to buy the much larger Delta Air Lines, further demonstrating US Airways' ability to bear the cost of its terminated pension plans. Indeed, it is striking that the $5 billion in cash being offered as part of the hostile Delta offer exceeds the full amount of the unfunded liabilities recently transferred to the PBGC. Certainly, neither the PBGC, other employers paying premiums to the PBGC, innocent pensioners, nor taxpayers should bear billions in costs to enable companies to buy out their competitors.

If US Airways now clearly has ability to generate considerable cash and has easy access to credit markets, the company’s ability to restore its terminated pension plans must be fully explored. This is especially true in light of the fact that PBGC regulations would permit the restored plans to be funded over a period of up to 30 years, which is an even longer funding period than airlines are afforded under the Pension Protection Act of 2006.

For these reasons, we request that the PBGC explore restoration of US Airways' terminated employee pension plans.

Sincerely,

Frank R. Lautenberg (D-NJ), Johnny Isakson (R-GA), Maria Cantwell (D-WA), Saxby Chambliss (R-GA), and Patty Murray (D-WA)


LEC Officers
CLT Council 89
[email protected]
AFA-CWA AFL-CIO
 
There is nobody who would like to see billions-and-billions of dollars in pension restoration more than me, but it is not going to happen.

As far as funding, US Airways had committed financing from Citigroup and Morgan Stanley for the proposed Delta transaction for $8.2 billion, not for pension restoration.

There is no lending institution in the world that would provide a company that kind of money for pensions without a means to service the debt. The loans were provided to fund the acquisition so the two companies could merge and generate more profits, not to add more debt with an inability to service that debt.

Regards,

USA320Pilot
 
There is nobody who would like to see billions-andbillions of dollars in pension restortation more than me, but it is not going to happen.

As far as funding, US Airways had committed financing from Citigroup and Morgan Stanley for the proposed Delta transaction for $8.2 billion, not for pension restoration.

There is no lending institution in the world that would provide a company that kind of money for pensions without a means to service the debt. The loans were provided to fund the acquistion so the two copanies could merge and generate more profits, not to add more debt with an inability to service that debt.

Regards,

USA320Pilot

I completely agree with you. For some reason people didn't realize or were in denial that the money to acquire Delta was being loaned to US.
 
For some reason people didn't realize or were in denial that the money to acquire Delta was being loaned to US.

Maybe some of it would have been from investors (not a loan)...but some how, some way, U acquired $3 billion in cash in the U coffers in a short 18 months post BK.
 
PITBull,

I agree with you that there is more money in the corporate treasury to pay employees more money in pay, benefits, and DC Plan contributions, but there is no money to restore the DB Plans.

Regards,

USA320Pilot
 
PITBull,

I agree with you that there is more money in the corporate treasury to pay employees more money in pay, benefits, and DC Plan contributions, but there is no money to restore the DB Plans.

Regards,

USA320Pilot

Let me get this straight. If the Senate passes a bill, and it also passes in Congress, you mean to tell me you would resist pension restoration??????

Forget DC Plan contributions that you contribute on lower wages, or some fluke profit sharing plan...you would actually mount a resistance against having your pension plans restored????

If they can pay the execs millions and millions and millions in compensation regardless of co. performance, you would say...nah, thank you very much, but I just don't want the pension...its just too difficut for U and I would rather see investors get 1000% return on their investment... :blink:
 
Let me get this straight. If the Senate passes a bill, and it also passes in Congress, you mean to tell me you would resist pension restoration??????

Forget DC Plan contributions that you contribute on lower wages, or some fluke profit sharing plan...you would actually mount a resistance against having your pension plans restored????

If they can pay the execs millions and millions and millions in compensation regardless of co. performance, you would say...nah, thank you very much, but I just don't want the pension...its just too difficut for U and I would rather see investors get 1000% return on their investment... :blink:



Now that is quite a stretch of reading between the lines
 
PITBull,

No, I would not resist a plan that would pay me between $1.5 to $2.0 billion in a lump sum. But, it is not going to happen.

Where is the money going to come from? US Airways provided all of its DB funds to the PBGC. Is that underfunded agency that has its own risk of failure without a taxpayer bailout going to provide it?

As I indicated earlier, Doug Parker said that Frank Lautenberg's action to explore the possibility of restoring the terminated employee pension programs was prompted by Delta's Government Affairs office to further fight the hostile merger attempt.

I believe it is not right to raise employee expecations when there is very little, if any, hope of restoring DB Plans.

With all due repsect, to suggest I would turn down nearly $2.0 million is "nuts".

Go Lautenberg!

Regards,

USA320Pilot
 
The company has the cash flow to service a $10 Billion debt. They can make payments to reinstate our retirement plan or at least contribute a substantial lump sum to our D.C. plan. But if you all want to just roll over, go ahead, I am not. I have written my two Senators and attached a copy of Lautenberg's letter to the PBGC.

Fellow pilots, stop being so weak and take a stand. Good lord, we still have guys single engine taxing...they are going to "save" the airline. This is the time for action! Pay, benefits, retirement and vaction. I am making over $1300 per month LESS than our West brethren, working for THE SAME COMPANY! Why do you think Doogie does not want to negotiate for a combined contract?

It will not be long until the economic cycle's next downturn-or fear of a downturn-and we will not be able to consider asking for help to our situation. ACT NOW!!!
 
PITBull,

No, I would not resist a plan that would pay me between $1.5 to $2.0 billion in a lump sum. But, it is not going to happen.

Where is the money going to come from? US Airways provided all of its DB funds to the PBGC. Is that underfunded agency that has its own risk of failure without a taxpayer bailout going to provide it?

As I indicated earlier, Doug Parker said that Frank Lautenberg's action to explore the possibility of restoring the terminated employee pension programs was prompted by Delta's Government Affairs office to further fight the hostile merger attempt.

I believe it is not right to raise employee expecations when there is very little, if any, hope of restoring DB Plans.

With all due repsect, to suggest I would turn down nearly $2.0 million is "nuts".

Regards,

USA320Pilot

I believe "plan restoration" means the PBGC returning all the funds back to U and U continue to fund the pensions as previous. Or, at least to freeze the plan via negotiations.

I don't think PBGC would balk over handing over the pension including the liability back to U. After all, they were in court with us trying to convince the judge that they couldn't handle those pensions and places an undo burden on the PBGC to fulfill those obligations.




The company has the cash flow to service a $10 Billion debt. They can make payments to reinstate our retirement plan or at least contribute a substantial lump sum to our D.C. plan. But if you all want to just roll over, go ahead, I am not. I have written my two Senators and attached a copy of Lautenberg's letter to the PBGC.

Fellow pilots, stop being so weak and take a stand. Good lord, we still have guys single engine taxing...they are going to "save" the airline. This is the time for action! Pay, benefits, retirement and vaction. I am making over $1300 per month LESS than our West brethren, working for THE SAME COMPANY! Why do you think Doogie does not want to negotiate for a combined contract?

It will not be long until the economic cycle's next downturn-or fear of a downturn-and we will not be able to consider asking for help to our situation. ACT NOW!!!

Finally a voice of reason who didn't get sucked up in the company vacumn cleaner.
 
PITBull,

I'm all for higher pay and benefits for every employee and I believe the corporate treasury has the funds to increase labor costs.

Furthermore, if all or part of the DB plans can be restored every action to do so should be done.

Go Lautenberg!

Regards,

USA320Pilot
 
PITBull,

I'm all for higher pay and benefits for every employee and I believe the corporate treasury has the funds to increase labor costs.

Furthermore, if all or part of the DB plans can be restored every action to do so should be done.

Go Lautenberg!

Regards,

USA320Pilot

Ok! That's what I like to hear! B)
 
19367.jpg
"DONT WORRY ABOUT IT!"
 
PITBull,

If there is any hope of recovering all or part of the DB Plans the union R&I Committee's must aggressively pursue this option!

My issue is that Delta called upon Johnny Isakson, Saxby Chambliss, Patty Murray, Frank Lautenberg and Maria Cantwell to help derail US Airways' hostile merger attempt.

Now these same people want to help restore our pensions? Does this sound a little bit unusual or "fishy"? My concern is that these people who are part of Delta's Congressional delegation could care less about US Airways' pensions, they only care about their votes in key Delta districts, which was their only agenda in the first place.

I believe there is merit in being a "cynic" regarding Lautenberg's action, however, if he is genuine than he needs to step up to the plate and help US Airways employees restore their pension. My fear: we will spin our wheels for nothing because Lautenberg's actions may not be genuine.

Regards,

USA320Pilot
 
" I don't think PBGC would balk over handing over the pension including the liability back to U. After all, they were in court with us trying to convince the judge that they couldn't handle those pensions and places an undo burden on the PBGC to fulfill those obligations."

Pitbull, I think the U pilot pension money was a windfall for the PBGC. A lot of former steelworkers can sleep better at night, as the funding for the U pilots exceeds the moneys the pilots will ever get. Also, what about the 400M left after PBGC was done?...it has been my understanding those moneys went for the purchase of the E170s, which Seagull said would "save" the airline. They were sold. I just don't think you can put this all back in the can.

For the pilots, the best chance a lot of us have is the Akaka ammendment, and an increase in our Defined Contribution percentage going forward. I am afraid the age sixty change may have torpedoed the PBGC change, and the DC change will have to be contractual.

Just my two cents, Greeter.
 

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