Defined Benefit Pension Plans
ARLINGTON (theHub.com) - A Special Bulletin was issued Saturday after a number of employees raised questions about the company's proposed termination of remaining defined benefit pension plans. The bulletin stated that employees covered by those plans should know that the requested termination would not eliminate their pension benefit.
If the Bankruptcy Court approves the terminations, the company will then work with the Pension Benefit Guaranty Corp. in the administration of plan assets and benefits. The PBGC pays most people all pension benefits, but some people may lose certain benefits that are not guaranteed.
PBGC spokesman Jeffrey Speicher told the Philadelphia Inquirer that US Airways has $2.3 billion in unfunded pension liabilities, and the agency estimates that its obligations to US Airways workers would be $2.1 billion, so payments to retirees would not be reduced significantly. "We don’t anticipate a massive benefit reduction in the US Airways case," he told the newspaper.
Mailings are going out to all of the affected employees, retirees and vested former employees, informing them in more detail about the potential impact of these terminations.
Defined Benefit Plan Update
ARLINGTON (theHub.com) - A number of employees have raised questions about the company's proposed termination of the defined benefit plan that was frozen in the early 1990s. Among those covered by that plan are management, administrative, airport customer service and reservations, ramp, crew scheduling, dispatch, flight crew training instructors and flight simulator engineers who were employees in those work groups at that time.
In addition, the company's motion today also seeks the termination of the active defined benefit plans covering flight attendants and mechanics.
If you are an employee in any of these groups, you should know that the requested termination would NOT eliminate your pension benefit. If the Bankruptcy Court approves the terminations, the company will then work with the Pension Benefit Guaranty Corp. in the administration of plan assets and benefits. The PBGC pays most people all pension benefits, but some people may lose certain benefits that are not guaranteed.
Mailings are going out to all of the affected employees, retirees and vested former employees, informing them in more detail about the potential impact of these terminations.
Regards,
USA320Pilot
ARLINGTON (theHub.com) - A Special Bulletin was issued Saturday after a number of employees raised questions about the company's proposed termination of remaining defined benefit pension plans. The bulletin stated that employees covered by those plans should know that the requested termination would not eliminate their pension benefit.
If the Bankruptcy Court approves the terminations, the company will then work with the Pension Benefit Guaranty Corp. in the administration of plan assets and benefits. The PBGC pays most people all pension benefits, but some people may lose certain benefits that are not guaranteed.
PBGC spokesman Jeffrey Speicher told the Philadelphia Inquirer that US Airways has $2.3 billion in unfunded pension liabilities, and the agency estimates that its obligations to US Airways workers would be $2.1 billion, so payments to retirees would not be reduced significantly. "We don’t anticipate a massive benefit reduction in the US Airways case," he told the newspaper.
Mailings are going out to all of the affected employees, retirees and vested former employees, informing them in more detail about the potential impact of these terminations.
Defined Benefit Plan Update
ARLINGTON (theHub.com) - A number of employees have raised questions about the company's proposed termination of the defined benefit plan that was frozen in the early 1990s. Among those covered by that plan are management, administrative, airport customer service and reservations, ramp, crew scheduling, dispatch, flight crew training instructors and flight simulator engineers who were employees in those work groups at that time.
In addition, the company's motion today also seeks the termination of the active defined benefit plans covering flight attendants and mechanics.
If you are an employee in any of these groups, you should know that the requested termination would NOT eliminate your pension benefit. If the Bankruptcy Court approves the terminations, the company will then work with the Pension Benefit Guaranty Corp. in the administration of plan assets and benefits. The PBGC pays most people all pension benefits, but some people may lose certain benefits that are not guaranteed.
Mailings are going out to all of the affected employees, retirees and vested former employees, informing them in more detail about the potential impact of these terminations.
Regards,
USA320Pilot
