CO/UAL Pension

[doh]

I haven't seen this question in the CO/UAL merger threads. What happens to COs defined benefit pension plan?

 

[justin15e]

I haven't seen this question in the CO/UAL merger threads. What happens to COs defined benefit pension plan?

Everyone gets their pension back with interest.

You heard it here 1st

 

[densoo]

Annuity remains, lump sum conversion of it could be history.

 

[jtf]

How likely is it that some of the over 60s will take the lump if it looks like it may not be a choice any more, or does everyone think that anyone who was going to take the early has already done so?

 

[Flyforyou]

IMO, very likely.

 

[densoo]

It's thin ice. The annuity is untouchable except in bankruptcy, and even then it is backed by the PBGC.

The lump sum can stop two ways. A liquidity shortfall or pilot group votes to end it. Since near 50% have nearly nothing in it, and about a third have been totally hosed by b-scale, furlough, zero work rules except for FARs, it's thin ice.

 

[roughneck]

It will be froozen as part of the joint contract and the pilot groups will fall all over themselves to sign on the dotted line. A large equity stake of the combined company will be the carrot. Dl/Nw got 6.9% of the company. I expect these guys will get around 5%.