The Pension

[steelersrule]

a320, no sarcasm. just the jobs of 30,000 employees and the pilots union indicating they will shut this company down. Bronner I could stomach but not when our own pilots shut down this company. You people need to stop thinking about yourselves and think about 30,000 families.

Pensions are sweet but you are going to have to get over it. There are no pilot jobs out there if your leadership is so blind to protect United airlines by shutting down US AIRWAYS.

 

[chipmunn]

Oldiebutgoody:

The pension issue is complex, but your comment about terminating the plan and this course of action not curing the problem is accurate. Therefore, freezing the plans are not an option as well.

Even though the pilot pension is the largest, the other union pensions remain at risk as well.

This is a significant problem that will be addressed three times tomorrow in Pittsburgh at the congressional meeting, during the Fitch Conference Call, and the Senate hearing.

Tomorrow morning Senator Specter is meeting in closed session with the ALPA MEC. In my opinion, there could be an agreement reached where two plans will be offered to the court. One would be to delay action on the pension in anticipation of congressional action because Senator Grassley agreed to hold hearings on the subject later this month or two terminate the plan and use the future corporate money planned for restoration to start a new plan (this concept would be much more creative than my comment).

In addition, with today's release of the Fitch Pension Report, who is the same company who evaluates federal loan guarantee applications, there is momentum building to change the law permitting the PBGC to approve a 30-year restoration plan.

Chip

 

[chipmunn]

US Airways renews attempt to change pension rules

PITTSBURGH (Post-Gazette) - US Airways, its unionized pilots and their allies in Congress today will try to jump-start legislation that would permit the bankrupt carrier to stretch out $3.1 billion in payments to its employee pension plan over 30 years.

Beginning this morning with a press conference at the Pittsburgh International Airport and ending with a U.S. Senate subcommittee hearing, they and U.S. Sen. Arlen Specter hope to highlight what they've been saying for sometime: that unless US Airways can reduce its pension obligations it could jeopardize its ability to obtain $900 million in federal loan guarantees and emerge out of Chapter 11 protection in March.

The airline also has said that the Retirement Systems of Alabama -- the company's major equity investor after it emerges out bankruptcy -- might pull out of the deal unless the company can reduce the cash contributions it makes to its employee pension plan.

US Airways' pilots -- the highest-paid employee group and the one with the most pension benefits -- said they could face a 75 percent cut in benefits if the airline can't reduce its pension contributions and is forced to cancel the plan.

Specter, R-Pa., the chairman of the Senate Finance Committee's subcommittee on labor and human services, will hold a hearing this afternoon on ways to resolve the pension contribution issue.

Last week, after two lawmakers objected, the Senate refused to begin debate on a bill, sponsored by Specter and Pennsylvania's junior senator, Rick Santorum, that would have stretched out the airline's cash contributions to its employee pension plan. Instead, the legislation was referred to the Senate Finance Committee.

In mid-December, the U.S. Pension Benefits Guaranty Corp., a federal agency which takes over failed private pension plans, said it did not have the authority to permit US Airways to stretch out its pension contributions.

But Specter said yesterday he hoped the panel would consider legislation that would permit US Airways to do just that. He said he also planned to use the hearing, at which the executive director of the Pension Benefits Guaranty Corp. will testify, to persuade the agency that it already has this authority even without new legislation.

US Airways' isn't alone in having a large pension shortfall. The nation's airlines retirement accounts are underfunded by more than $18 billion, according to a report released by Fitch Ratings.

 

[mlt]

Chip,[BR][BR]You are correct when you post:[BR][BR][STRONG]Even though the pilot pension is the largest, the other union pensions remain at risk as well.[BR][BR][/STRONG]In the event the 30-year restoration plan is approved, I believe all pension plans are included in the restoration. While this is the only viable option for pilots, the other labor groups do not agree this is in our best interest. Our deficit reduction contributions are significantly smaller and U has the ability to fully fund the plan within 7 years. The other groups do not want U holding a gun to our heads for the next 30 years during negotiations resulting in lengthy concessionary agreements. For the next 30 years bankruptcy and liquidation will be held over labors' head. Additionally, if this agreement is passed, there can be no changes to the retirement formula during the restoration. i.e. flight attendant social security offset is here to stay for the next 30 years.[BR][BR]ALPA's altruistic nature has surfaced once again....attempting to negotiate something that will benefit the pilots while hurting the IAM & AFA. Perhaps ALPA should have thought to contact the labor groups, they might be surprised by what they hear. My reliable sources have indicated they are in touch with the very same senators and have told them ALPA is looking out for their pensions, not the IAM and AFA.

 

[usjacket]

Chip, you answered Insp89 before the vote, (see A Promise To No Voters 1/13/03 ) Insp 89, In his December 24th letter to all employees Dave Siegel said, "The only thing that puts the IAM and AFA pensions at risk is a "no vote on ratification". Now, your not saying Dave is not good to his word are ya?

 

[diogenes]

[blockquote]
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On 1/13/2003 446 PM A320 Driver wrote:

After these cuts, my ability to stuff the 401K sock is weak. You might be right.


A320 Driver
----------------
[/blockquote]
------------------------------------------------------------

Welcome to my world. Been feeding a 401k on ramp pay since 1995.

 

[us10]

Official: US Airways Risks Pensions
By LARA JAKES JORDAN

WASHINGTON (AP) - A plan to help bail US Airways out of bankruptcy by extending its employee pension payments would risk retirement security for 44 million Americans, federal officials told a Senate hearing Tuesday.

But Pennsylvania's two senators, pushing to revise federal tax laws to give the financially embattled airline a 30-year cushion to pay $3.1 billion in pension obligations, responded that the federal benefits fund would pick up the bill anyway if US Airways goes belly-up.

At issue was legislation by Republicans Sens. Arlen Specter and Rick Santorum, who are trying to help bring the Arlington, Va.-based airline out of bankruptcy by the end of March. The lawmakers want the federal Pension Benefit Guaranty Corp. to let US Airways pay its pension liabilities - mostly to the airline's pilots - over three decades instead of the seven-year deadline it is now facing.

In testimony in front of a Senate Appropriations subcommittee hearing, PBGC executive director Steven A. Kandarian maintained that stringing out the payments would risk the stability of the 35,000 pension plans nationwide that the federal fund protects. Moreover, he said, the plan would give US Airways an unfair advantage at a time when other companies are grappling with high pension costs.

Kandarian also maintained that the PBGC does not have the jurisdiction to revise the law.

US Airways, the nation's sixth-largest airline, was the first to file for bankruptcy during the travel industry slump following the Sept. 11 terrorist attacks. The company is carrying a $61 billion debt, lost $2.1 billion in 2001 and has said it needs to cut costs by $1.6 billion to remain viable.

An estimated 17,000 of US Airways' 32,000 employees work in Pennsylvania. Its hubs are in Philadelphia, Pittsburgh and Charlotte, N.C.

The airline is set to appear in bankruptcy court on Thursday to seek approval for the reorganizational plan it outlined last month to emerge from bankruptcy. That proposal largely hinges on a $1 billion loan guarantee from the Air Transportation Stabilization Board that has been tentatively awarded on condition that US Airways settles its massive pension obligations.

PBGC will take over US Airways' pension plans if the airline is forced to liquidate. If that happens, pilots face losing up to 75 percent of the anticipated retirement benefits, said Capt. Duane E. Woerth, president of the Air Line Pilots Association.

``The time that we have to resolve this is very short,'' said US Airways President and CEO David Siegal. The airline's equity sponsor and other lenders ``expect a resolution to this matter within days, not weeks or months.''

The Senate last week refused to consider the pension extension bill, but Specter said he and Santorum may try to force a vote by a parliamentary procedure.

 

[delldude]

kdka radio am was on air tonite all worked up how 3.1 bill was stolen from our coffers by wolfe and seigel.(robb ppratt)he was pleading for someone from pilots group to call in.i listened but didn't hear if a pilot called in as i was busy saving the airline.

 

[cavalier]

i was busy saving the airline

-------------------------------------------------------------

Then we are cooked

 

[delldude]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 1/14/2003 11:41:05 PM cavalier wrote:
[P]i was busy saving the airline[BR][BR]-------------------------------------------------------------[BR][BR] Then we are cooked[BR][BR] [/P]----------------[/BLOCKQUOTE]
[P][/P]

 

[kiloromeo]

"...According to the Wall Street Journal, the term sheet calls for an increase in flight hours to 92 a month from 81 or 85, a cut in company contributions to a defined-contribution pension plan from 11% to 2% of a pilot’s wage, elimination of furlough protection, and easing of the scope clause to permit United's Regional partners to operate more regional jets in codeshare.."

question...is the above 11% a contribution to their 401K in addition to the pension? It is unbeleivable the golden goose ALPA has been MFing all these years. Its to bad they choked to near death.

 

[us10]

[blockquote]
----------------
On 1/15/2003 11:29:44 AM autofixer wrote:

I do no understand what you are asking? The pilots' 401k has no company match or contributions...only what the pilots elect to put in themselves.
----------------
[/blockquote]

Autofixer,

I think he's talking about the UAL pilot's 401K.

 

[autofixer]

I do no understand what you are asking? The pilots' 401k has no company match or contributions...only what the pilots elect to put in themselves.

 

[sp300]

401K-- Over the years I kept putting money into it. Now I have 6,000 shares of USAirways (minus what AON sold without my permission). 401K indeed, I'm glad we have the IAM pension plan.

Chip, the chips are on the table. You need to have a leap of faith. Let Dave get rid of your pension plan. I'm sure he will come up with a better plan, at a future date. (and I'm not being facetious) --- A LEAP OF FAITH ---