Two-thirds of us will lose over half of our modest pension benefits following Judge Wedoff’s ruling to approve the agreement between the Pension Benefit Guarantee Corporation (PBGC) and United Airlines for a $1.5 billion payment to terminate all employee pension plans. Millions of American workers and taxpayers should be alarmed by this action as it may trigger a total collapse of the defined benefit system in our country.
This approval of the backroom deal brokered by United and now approved by the court, pre-empted our statutory right to defend our pension plan through the bankruptcy process based on the merits of the plan itself, as measured against the standards of pension law. We presented United with a viable solution to shore up the funding shortfall and ensure the long-term viability of our pension plan, but that solution was rejected by current management. Glenn Tilton has been widely quoted for months stating that termination of employee pension plans is ‘non-negotiable.’ We believe strongly that if we were provided the opportunity to present our case to the court, the Flight Attendant Defined Benefit Pension Plan would remain intact and off of the government’s balance sheet.
In an emergency effort to halt the termination of potentially viable pension plans, Representative George Miller (D-CA) has introduced legislation that would impose a six-month moratorium on pension plan terminations instituted by the Pension Benefit Guaranty Corporation (PBGC). Miller, along with Representative Jan Schakowsky (D-IL) is a tremendous advocate for Flight Attendants and is now actively working to gain support for this critical legislation in our fight to preserve our retirement security.
The moratorium would apply in cases in which the plan sponsor is in bankruptcy reorganization proceedings, and the termination of the plan would result in loss of benefits which are not guaranteed. HR 2327 would be effective for working pension plans as of May 1, 2005, and therefore it would apply to United Flight Attendant retirement security as our Union seeks judicial review of the viability of the Flight Attendant Pension Plan.
We also encourage Members and other concerned parties to contact their Senators and urge them to introduce a Senate version of HR 2327. Tell your Senate offices to contact AFA Government Affairs Director Shane Larson for additional information, 202-997-0928.
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