Millions of American workers and taxpayers should be alarmed by the recent bankruptcy court approval of a deal between the Pension Benefit Guarantee Corporation (PBGC) and United Airlines to terminate all employee pension plans for $1.5 billion, as it may trigger a total collapse of the defined benefit system in our country. Representative George Miller (D-CA) has introduced legislation, HR 2327, that would impose a six-month moratorium on pension plan terminations instituted by the PBGC.

What's At Stake!

Act now to contact the Speaker of The House Dennis Hastert through this E-Activist alert. Use the form on the right hand side of this page.

Dear [ Decision Maker ] ,

I am writing today to request that you cosponsor HR 2327, a bill introduced by George Miller (D-CA) which would impose a six-month moratorium on pension plan terminations instituted by the Pension Benefit Guarantee Corporation (PBGC). 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.

Two-thirds of United Flight Attendants will lose over half of our modest pension benefits as United Airlines is allowed to dump its promise of retirement security onto the government. The decision of the federal bankruptcy court in the Northern District of Illinois to approve the agreement between the Pension Benefit Guarantee Corporation (PBGC) and United Airlines for $1.5 billion payment to terminate all employee pension plans may trigger a total collapse of the defined benefit system nationwide.

This approval of the backroom deal brokered by United and now approved by the court, pre-empted our statutory right of Flight Attendants and other employees to defend their pension plan through the bankruptcy process based on the merits of the plan itself, as measured against the standards of pension law. AFA has presented viable solutions to shore up the funding shortfall and ensure the long-term viability of the Flight Attendant Defined Benefit Pension Plan. United rejected the proposal and instead went on to negotiate the settlement agreement with the PBGC. The Union believes strongly that if it were provided the opportunity to present its 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, HR 2327 would be effective for working pension plans as of May 1, 2005, and therefore it would apply to the flight attendant pensions as its Union seeks judicial review of the viability of their pension plan.

Please contact Jody Calemine, 202-225-1526 to sign-on to this critical legislation, HR 2327. Time is of the essence as the United Flight Attendant pensions and America's defined benefit pension system hangs in the balance.

Should you have any questions about the United Flight Attendant Pension Plan, please contact Shane Larson at 202-434-0573.

Thank you for your support and I look forward to hearing from you.

Sincerely,

Campaign Launched:
May 16, 2005