altimaklr
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LETTER TO PBGC ASKS AGENCY TO CONSIDER RESTORING
US AIRWAYS EMPLOYEE PENSION PROGRAM
WASHINGTON, D.C. - Last night, United States Senator Frank R. Lautenberg (D-NJ), along with a bipartisan group of his colleagues, sent a letter to the head of the Pension Benefit Guarantee Corporation (PBGC), asking him to explore the possibility of restoring the terminated employee pension programs at U.S. Airways, in light of the airline’s substantially improved financial circumstances. The employee pension plans, which were underfunded by $4.8 billion at the time of their termination, have since been assumed by the PBGC.
By law, PBGC has the authority to take such action if a company’s financial situation is improved. Earlier this month, US Airways offered to purchase the larger Delta Airlines for some $10.2 billion, including $5 billion in cash.
"If US Airways now clearly has ability to generate considerable cash and has easy access to credit markets, the company’s ability to restore its terminated pension plans must be fully explored. This is especially true in light of the fact that PBGC regulations would permit the restored plans to be funded over a period of up to 30 years, which is an even longer funding period than airlines are afforded under the Pension Protection Act of 2006," the lawmakers wrote.
"The Federal government shouldn’t allow a company that dumped its pension responsibilities buy another," said Lautenberg. "US Airways should take care of its employees before taking over another airline."
Senators Johnny Isakson (R-GA), Maria Cantwell (D-WA), Saxby Chambliss (R-GA), and Patty Murray (D-WA) also joined Lautenberg in signing the letter.
LETTER TO PBGC ASKS AGENCY TO CONSIDER RESTORING
US AIRWAYS EMPLOYEE PENSION PROGRAM
WASHINGTON, D.C. - Last night, United States Senator Frank R. Lautenberg (D-NJ), along with a bipartisan group of his colleagues, sent a letter to the head of the Pension Benefit Guarantee Corporation (PBGC), asking him to explore the possibility of restoring the terminated employee pension programs at U.S. Airways, in light of the airline’s substantially improved financial circumstances. The employee pension plans, which were underfunded by $4.8 billion at the time of their termination, have since been assumed by the PBGC.
By law, PBGC has the authority to take such action if a company’s financial situation is improved. Earlier this month, US Airways offered to purchase the larger Delta Airlines for some $10.2 billion, including $5 billion in cash.
"If US Airways now clearly has ability to generate considerable cash and has easy access to credit markets, the company’s ability to restore its terminated pension plans must be fully explored. This is especially true in light of the fact that PBGC regulations would permit the restored plans to be funded over a period of up to 30 years, which is an even longer funding period than airlines are afforded under the Pension Protection Act of 2006," the lawmakers wrote.
"The Federal government shouldn’t allow a company that dumped its pension responsibilities buy another," said Lautenberg. "US Airways should take care of its employees before taking over another airline."
Senators Johnny Isakson (R-GA), Maria Cantwell (D-WA), Saxby Chambliss (R-GA), and Patty Murray (D-WA) also joined Lautenberg in signing the letter.
TC
