We have good news to report. Today, U.S. District Court Judge John Darrah reversed orders previously entered by the Bankruptcy Court allowing the Pension Benefit Guaranty Corporation (PBGC) to terminate the United Airlines Pilots’ Benefit Pension Plan effective December 30, 2004. This reversal means that the pilot pension plan should not have been terminated and should be in effect as of today.
On October 26 and 28, 2005, Bankruptcy Judge Eugene Wedoff issued a written decision and orders terminating the Pilots’ Plan. In his written opinion, Judge Wedoff stated that he had the authority to enter orders terminating the plan. URPBPA appealed the decision to the District Court and today, Judge Darrah issued an opinion reversing the termination decision as he found that the Bankruptcy Court did not have jurisdiction and that only a District Court would have the authority to consider whether or not the Pilots’ Plan should be terminated.
The PBGC may attempt to have a higher court reverse Judge Darrah's order. URPBPA will resist any such efforts. Unless a higher court reverses Judge Darrah, his order will remain in effect.
If the PBGC does not appeal Judge Darrah’s order, but otherwise continues pursuing its efforts to terminate the Pilots’ Plan, it may seek a termination order from District Court Judge Joan Lefkow, the Judge to whom the case was originally assigned. She is the Judge who will have the authority to decide whether the Bankruptcy Court's prior findings will be accepted and whether a new order terminating the Pilot Plan should or should not be entered. URPBPA will have the opportunity to object to the entry of any order to terminate the Pilots’ Plan. URPBPA will continue to defend the preservation of the pilot pension plan and resist all attempts to terminate the plan.
On October 26 and 28, 2005, Bankruptcy Judge Eugene Wedoff issued a written decision and orders terminating the Pilots’ Plan. In his written opinion, Judge Wedoff stated that he had the authority to enter orders terminating the plan. URPBPA appealed the decision to the District Court and today, Judge Darrah issued an opinion reversing the termination decision as he found that the Bankruptcy Court did not have jurisdiction and that only a District Court would have the authority to consider whether or not the Pilots’ Plan should be terminated.
The PBGC may attempt to have a higher court reverse Judge Darrah's order. URPBPA will resist any such efforts. Unless a higher court reverses Judge Darrah, his order will remain in effect.
If the PBGC does not appeal Judge Darrah’s order, but otherwise continues pursuing its efforts to terminate the Pilots’ Plan, it may seek a termination order from District Court Judge Joan Lefkow, the Judge to whom the case was originally assigned. She is the Judge who will have the authority to decide whether the Bankruptcy Court's prior findings will be accepted and whether a new order terminating the Pilot Plan should or should not be entered. URPBPA will have the opportunity to object to the entry of any order to terminate the Pilots’ Plan. URPBPA will continue to defend the preservation of the pilot pension plan and resist all attempts to terminate the plan.
