Us Gov Taking Over More United Pensions

herkav8r

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Apr 10, 2003
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The U.S. agency that backs corporate pensions on Friday said it was moving to take over United Airlines' pension plan for ground employees, saying the plan operated by the bankrupt airline was only 30 percent funded.
The Pension Benefit Guaranty Corp. said it would guarantee payment of an estimated $2.1 billion in benefits out of the plan's $2.9 billion shortfall. The plan has more than 36,000 active and retired employees, the agency said. UAL Corp. (UALAQ.OB: Quote, Profile, Research) is the parent company of United Airlines.

A PBGC spokesman said the agency was petitioning in federal district court to take over the ground employees plan.

"The decision to end a plan is never an easy one," PBGC's director Bradley Belt said in a statement. But the agency also needed to protect itself against more losses, he said.

The PBGC is itself in the red, with a $23 billion deficit. By moving to assume United's plan now, the agency said it saved itself at least $225 million in extra losses.

The United plan had only $1.2 billion in assets to cover $4.1 billion in benefit promises, and the company has missed $363 million in legally required contributions, the PBGC said.

It noted that United's management had repeatedly stated its intention to terminate the plan. United says it needs to replace its pension plans to exit bankruptcy.

United said it was reviewing the PBGC's actions and evaluating its options.
 
I agree to that one. What is good for the goose is good for the gander. No pensions for anyone.
 
The secret pensions of fat-cat executives

When it comes to retirement plans, many top execs look forward to goodies unknown to most pensioners. Here's how companies pile on the pension perks.

Shielding the spoils
Protected plans.
Delta Air Lines successfully pushed its pilots into agreeing to $1 billion in wage, benefit and pension cuts to help stave off bankruptcy. At the same time, the airline moved the pensions of its top executives into trusts that would preserve the funds in case of a Chapter 11 filing.

At most companies, the pension money would have remained a corporate asset -- and subject to seizure by creditors. Transferring the money to the bankruptcy-proof trusts typically triggers big tax bills for the executives, so Delta inflated the amounts to compensate for the extra taxes. Other troubled companies that have created similar trusts for executives include UAL Corp., parent of bankrupt United Airlines, and defunct steel concern LTV Corp.

Your corporate leaders, by contrast, may have been reimbursed for the professional advice to plan their retirement, arrange their estates -- or even negotiate their pay and benefit package. Former United Airline’s Chairman James Goodwin was paid an extra $47,000 to cover financial planning advice in his last two years on the job, but that sum pales against the $203,113 Cendant’s Silverman received to compensate him for legal fees incurred while he was wrangling with the company over his employment agreement.

What a bunch of 'CRAP'!!!

And what a bunch of 'COWARDS' some are to accept our fate without a fight!!!

June will certainly be an interesting month!!!

B) UT
 
What choice does the pbgc have? Ua has not been paying into the program and does not plan to.

I'm sure the pbgc will file a claim agaist Ua once they take over all plans.
 
uafa21 said:
What choice does the pbgc have? Ua has not been paying into the program and does not plan to.

I'm sure the pbgc will file a claim agaist Ua once they take over all plans.
[post="254905"][/post]​
<_< So the PBGC will just have to get in line with the rest of the Creditors!!!
 
MCI transplant said:
<_< So the PBGC will just have to get in line with the rest of the Creditors!!!
[post="254927"][/post]​

True. But did not the PBGC file an "administrative claim" which would put them near the beginning of the line? And would this have to be paid before bankruptcy exit? Would UA have the cash to pay these administrative claims? I remember this being discussed a while back but can't remember the answer to these questions.
 
Usually anything wage related is at the front of the creditor line. We employee can vote alday long to do away with pensions, but there is still an obligation from the past for which Ua has chose to ignore. These funds are still due and owing.
 
"So the PBGC will just have to get in line with the rest of the Creditors" Yes they will...but it will be WAY to the FRONT of the line. As mentioned above the bad thing for about the PBGC taking over the pension liability is that Ual MUST settle the debt. Frankly, the American public needs to WAKE - UP and stop whinning and make those sorry a$$ politicians in Washington do something about the pigs at the top of corporate America. Legal thieft, protecting their pensions while STEALING from the rank and file employees. Too bad "Martha Stewart"s little lie is more important to the Justice Dept. than hundreds of thoursands Americans pensions stolen while pigs running the companies walk away with pockets full. Yeah, these BODs are REALLY looking out for the well being of the companies.
 
N by NW for once I agree with you. We publicize the stupid Micheal Jackson trial and Martha Stewart but things that could really cost the tax payers big bucks are at the back of the line and out of site.

As a tax payer I am outraged over the possibility that the pbgc takes over any pension plan and guaranties that pensions will be paid out. As a Ua employee I want my pension due to me. What is right?

I think if we allow Ua to drop plans then we should get nothing. That's why we need to fight in order to preseve the plans. It is now to late and we allowed the company to pass paying into the plan for too long. Tilton should get nothing from a Ua pension.
 
uafa21 said:
N by NW for once I agree with you. We publicize the stupid Micheal Jackson trial and Martha Stewart but things that could really cost the tax payers big bucks are at the back of the line and out of site.

As a tax payer I am outraged over the possibility that the pbgc takes over any pension plan and guaranties that pensions will be paid out. As a Ua employee I want my pension due to me. What is right?

I think if we allow Ua to drop plans then we should get nothing. That's why we need to fight in order to preseve the plans. It is now to late and we allowed the company to pass paying into the plan for too long. Tilton should get nothing from a Ua pension.
[post="255208"][/post]​

What is 'right' has little to do with it.
We have ethical, moral, and 'legal' forces that will determine our fate.
The ethical thing to do would be to fund our pensions at all cost.
The moral thing to do would be to fund our pensions at all cost.
Lets see how the 'legal' equation makes this determination, but my guess is that 'DaJudge' will slap the gavel down and send my pension to the PBGC without a second thought.

Maybe we should start a thread as to what type of cardboard has the best resiliency against the forces of nature.

Location might be discussed also. Does living under a bridge provide the best protection or are there other alternatives?

BTW, congrats on getting another 500 FA's recalled!!! :up:

We are loosing another 200 (+/-) next month.


Take care,
B) UT

View attachment 2681
 
UAL_TECH said:
What is 'right' has little to do with it.
We have ethical, moral, and 'legal' forces that will determine our fate.
The ethical thing to do would be to fund our pensions at all cost.
The moral thing to do would be to fund our pensions at all cost.
Lets see how the 'legal' equation makes this determination, but my guess is that 'DaJudge' will slap the gavel down and send my pension to the PBGC without a second thought.

Maybe we should start a thread as to what type of cardboard has the best resiliency against the forces of nature.

Location might be discussed also. Does living under a bridge provide the best protection or are there other alternatives?

BTW, congrats on getting another 500 FA's recalled!!! :up:

We are loosing another 200 (+/-) next month.
Take care,
B) UT

View attachment 2681
[post="255221"][/post]​
<_< Hey! That cartoon was arround when United was still flyiny DC 7's !! :p
 
UAL_TECH said:
my guess is that 'DaJudge' will slap the gavel down and send my pension to the PBGC without a second thought.

[post="255221"][/post]​
Finally someone might stand up and show their cajons. I say might, because the IAM is meeting with the PBGC today to try and hammer out an alternative to a take over of the pension. If they work out an amilicable deal great, but if they don't get it work out and "DaJudge" lets the PBGC take it over.......the strike may be on :shock: This company has raped the employees for to long and now it's time to stand up. Enough is enough. :angry:
 
You can't blame the PBGC here. They are only protecting their intrest. Ua has not contributed to these funds for a long time and has no plan to contribute.

It is clearly the blame of Ua. Why for God sakes was the Judge allowing Ua to start up Ted instead of funding pension plans? The plans were a leagal obligation of Ua and still are.
 
Maybe UA execs have some 'lampshade film' of the Judge in action. He certainly gives them an overtly fair degree of latitude.