Tilton says CBA''s only reduced reduced pension obligations to some extent

[atabuy]

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On 7/24/2003 1223 AM Chip Munn wrote:




767jetz:


I fully understand your frustration, concern, and fear, however, if the Air Line Pension Act of 2003, recently introduced as H.R. 2719, does not become law, then it appears from this week's Glenn Tilton employee message, the UA employees could have a choice. Either terminate your pensions and have a better chance of survival or liquidate.

Tiltion's comment that "pension plans are cash liabilities that must be met" for the company to successfully emerge from court protection are simple enough to understand. Furthermore, Tilton said the new "collective bargaining agreements reduced pension obligations to some extent," but it's clear there must be more retirement plan concessions.


I was just wondering, how do you think ALPA will react to Tilton's comments, if there is not a legislative solution for the underfunded pensions?

Best regards,

Chip 


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Chip,
Maybe you can answer this for me?
I posted this on another thread but haven't had a response.

I wrote:
Excuse me for interupting this debate, but I have a question about the pension underfunding.

My understanding for my pension is this: Ual bought an annuity for me as a mechanic. Was that annuity paid up front when corporate raiders were trying to rob pension funds?
If so, does this underfunding deal only with the pilots group?

Jim

 

[USA320Pilot]

Jim:



I'm not familiar with your plan, but it probably complies with ERISA. If true, then your retirement plan is at risk.

However, according to Reuters, UA is likely facing the same problem we did at US. In particular, the underfunded pension(s) must be resolved before UA can qualify for a $1.8 billion loan guarantee. Thus, without a pension undefunding resolution there will likely be no federal loan guarantee. Without the federal loan guarantee, there will likely be no company.


It appears UA and its employees face the same difficult decision(s) that we did at US.


Best regards,

Chip

 

[UAL_TECH]

Chip,

Speaking in the 'Third' person is not a sign of sound mental health.

JMHO,
UT