The Judicial Witchhunt Has Begun

[Annie]

a clinton nominee, judge wedoff(sp), allowed united airlines to drop its pension benefits to get out of bankruptcy, forcing the PBGC to pick up 6 billion dollars worth of benefits, all at taxpayer expense.

Here's a story:

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/12/10/MN48836.DTL

 

[SmarterThanYou]

Here's a story:

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/12/10/MN48836.DTL

we got screwed over on this deal eventually.

http://www.latimes.com/business/la-fi-united11may11,0,4692143.story

A bankruptcy judge Tuesday approved United Airlines' historic plan to dump its underfunded pension plans on a federal agency, a move United said it needed to survive but one that could trigger a damaging strike against the airline.

At a hearing in Chicago packed with scores of United employees and retirees, union officials and lawyers, U.S. Bankruptcy Judge Eugene Wedoff said United could shift all four of its major pension plans — and their combined $6.6 billion of liabilities — to the Pension Benefit Guaranty Corp.

The ruling clears the way for the largest corporate pension default in the 31-year history of the nation's pension insurer, and it added to the massive financial problems that the PBGC itself is grappling to contain.

The ruling fueled speculation that other major airlines — which also are suffering huge losses — might try to ditch their pension plans to avoid being at a competitive disadvantage to United, the second-largest U.S. carrier, behind American Airlines.

Wedoff's decision was an immediate blow to United's 121,500 active and retired employees, many of whom are likely to see their retirement checks reduced because federal pension laws cap how much the PBGC pays out.

Wedoff said that transferring the pension plans to the federal agency didn't violate any law or United's union contracts, and that reduced benefits were better than having the airline go under.

 

[ScreamingEagle]

we got screwed over on this deal eventually.

http://www.latimes.com/business/la-fi-united11may11,0,4692143.story

A bankruptcy judge Tuesday approved United Airlines' historic plan to dump its underfunded pension plans on a federal agency, a move United said it needed to survive but one that could trigger a damaging strike against the airline.

At a hearing in Chicago packed with scores of United employees and retirees, union officials and lawyers, U.S. Bankruptcy Judge Eugene Wedoff said United could shift all four of its major pension plans — and their combined $6.6 billion of liabilities — to the Pension Benefit Guaranty Corp.

The ruling clears the way for the largest corporate pension default in the 31-year history of the nation's pension insurer, and it added to the massive financial problems that the PBGC itself is grappling to contain.

The ruling fueled speculation that other major airlines — which also are suffering huge losses — might try to ditch their pension plans to avoid being at a competitive disadvantage to United, the second-largest U.S. carrier, behind American Airlines.

Wedoff's decision was an immediate blow to United's 121,500 active and retired employees, many of whom are likely to see their retirement checks reduced because federal pension laws cap how much the PBGC pays out.

Wedoff said that transferring the pension plans to the federal agency didn't violate any law or United's union contracts, and that reduced benefits were better than having the airline go under.

I heard a caller on talk radio say she and her husband (a pilot) worked for United constantly for 30-40 years and were expecting about $7,000 a month retirement income. Now she says they're only getting about $1,000. What a royal ripoff!

I agree that this kind of corporate irresponsibility has got to go. And what is up with the Federal government picking up the tab? Isn't that going to hurt SS even more?

Bush has already attempted to address some of the pension issues and now legislators from both sides of the aisle are:

Posted on Thu, May. 19, 2005
Lawmakers call for pension reform
By MIKE CASEY
The Kansas City Star


Congress must pass reforms to ensure that companies keep their pension promises to workers and retirees, several senators and representatives said this week.

The lawmakers were reacting to a Kansas City Star report Sunday about the problems of the Pension Benefit Guaranty Corp., a federal agency that takes over bankrupt companies’ pension plans and pays retirees.

The agency has experienced record losses and, by one estimate, will go broke in 2021 unless Congress makes fundamental changes, the newspaper reported.

The Star also found that loopholes in the current law allowed some companies’ pension plans to become underfunded. Those companies eventually went bankrupt, saddling the federal agency with billions of dollars in promises.

Earlier this year, the Bush administration proposed several pension law changes. Now congressional committees are writing bills aimed at closing legislative gaps.

http://www.kansascity.com/mld/kansascity/news/local/11681241.htm