US Airways to terminate pilot's pension

[bigred]

US Airways to End Pilots' Pension Plan
Thursday January 30, 5:12 pm ET


NEW YORK (Reuters) - Bankrupt US Airways Group Inc. said on Thursday it planned to terminate its pilots' retirement plan and replace it with a leaner pension program.

The airline notified the government that it intends to end the underfunded plan on March 31 and plans to start up another, committing $850 million over the next seven years in contributions to fund it.

US Airways said ending the plan was the only option remaining to resolve the pilots' underfunded pension liability before finalizing its bankruptcy reorganization plan for creditors. Proposed legislative and regulatory solutions have so far not materialized.

The government also has required the company to resolve the pension question one way or another in order to get final approval of a $900 million loan guarantee. That credit support is crucial to the company's reorganization effort.

Termination of the plan requires the approval of the government agency that insures pensions as well as the bankruptcy court.

 

[boeingdriver213]

There goes 14 years of service down the drain.......

 

[Draginass]

If Siegel steals their pension, they might as well disband the union and save the dues.

 

[Boeingman]

In some ways, it sounds like CAL in 1983 all over again. Different circumstances but the end result is the same. No matter what was conceeded it was never enough for Frank, he just kept coming back for more and more and more.

If I was a U pilot I would walk over this. And never look back.

ALPA better really take a stand or the potential industry wide ramifications are enormous. Those who feel otherwise are just fooling themselves. Every single airline CEO is just licking their chops to see if they get away with this.

That being said, I'm not holding my breath for ALPA to take any real drastic action. They have become far to impotent over the years.

 

[reepicheep]

Word is we are ramping up the strike-preparedness-com. I'd also suggest to those commuting on US via jumpseat don't cut it too close - on time performance may soon start to suffer!

 

[GoABX]

B fund

All this shows the importance of having a B fund, especially for those carriers that do not have one at all.

 

[bigred]

No, it shows what a gamble this whole pilot thing is.

 

[WrightAvia]

life is a gamble

My old man spent 16 years as a crewmember on SSBN's. As long as there are Inter-Continental Ballistic Missiles around, we're all an episode of friends away from being toast.

Enjoy life as much as you can...roll the dice. Risk all for nothing and if you burn in...don't worry, we'll split your gear.

 

[Lindy]

Not a reliable source, USA Today, but I saw the numbers for the "modified" pension plan and it was staggering.

For example, if a pilot is receiving $50K to $70K now, the "new" fund will let the pilot receive $28K.

The fund is underfunded; the government's insurer of all pension funds is $3B dollars underfunded; it just isn't happening in aviation, it is happening in every other industry also.

The underfunding of American pension funds is one of the biggest problems facing the nation and it isn't receiving the attention it deserves or the help from the Senators it requires.

 

[boeingdriver213]

Not looking to impressive for all of us furloughees either. If the senior guys get 28K, what do you think the guys and gals with 14 years or less are gonna get?

 

[Mr. Irrelevant]

I posted on this a week or two ago. It simply underscores the importance of having guaranteed money (at least relatively). There is frequent bashing of the 401k program at Southwest but that money is the employees to keep. Big difference.

As for so many pension plans being underfunded, that is always the case during downturns in the market. Most plans just two and a half years ago were fully funded or overfunded. If the market were to rise 7% this year and then at the long-term average of 11% the next year, the magnitude of the underfunding of the plans would be far less.

If anything, pension plans should be set up so that companies cannot adjust the amounts they pledge to an employees retirement. I would doubt that the government would ever force companies to maintain a certain cash level in their plans. If so, or if there is something like that on the books, you can bet it's a real small number.


Mr. I.

 

[GuppyPuppy]

I remember flying with a Captain at SkyWest whose father was a pilot at USAir. His Dad retired 7-8 years ago and got a lump sum payout of his A-fund of about $2,000,000!

I was born 30 or 40 years too late!

Cheers!

GP

 

[FlyLawyer]

Pilots with a Plan

Word is we are ramping up the strike-preparedness-com. I'd also suggest to those commuting on US via jumpseat don't cut it too close - on time performance may soon start to suffer!

Yeah, sounds like an excellent idea to get the attention of managment. Show them that you are an irreplacable icon. Better yet, extend the flaps and gear about 10 miles outside of the marker. Expend that fuel. Delete that cash reserve. You have precedent; after all, that's what my Uncle and many of his compadres did when he flew for Eastern. It worked, too. It worked so well that he hasn't flown since 1991. Efficacious? Well, I suppose that depends on the beholder. Just a thought.
On the other hand, we are all too often the victim of our own petard.