State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?


Download Now!




This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

Download Now!
May 11, 2005
Ruling Allows United to Drop Pension Plans

A federal bankruptcy judge has ruled that United Airlines can terminate its four employee pension plans covering 134,000 people, the New York Times reports.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

The ruling means that the Pension Benefit Guaranty Corporation will assume responsibility of the plans, relieving the airline of $3.2 billion in pension obligations over the next five years. United's pension plans are underfunded by $9.8 billion, according to the newspaper.

The newspaper says it would be the largest pension default since the government began guaranteeing pensions.

"It's a hammer blow to thousands of retirees who will have to somehow make do with lower pension checks," says Joseph Tiberi, a spokesman for the International Association of Machinists and Aerospace Workers. "The promises United made to them are worthless."

The company said terminating the pension plans was a necessary step so it could emerge from bankruptcy.

Link

Featured Special Report:
Top 100 FLSA Overtime Q&As
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB02
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Benefits-Leave/Employee-Benefits/Ruling-Allows-United-to-Drop-Pension-Plans/