ending date of pension plan for customer service employees?

[former_usairways]

My former US Airways employee wife is in the process of getting an estimate of her pension from PBGC, which might take as much as 45 days. Paperwork was lost after our move which gave particulars of when her pension plan (as customer service agent) was ended. I recall that before they were unionized in 1990s, Wolf and Gangwal (who asked agents to vote against unionization with promise the company would look after them...yeah, right!) terminated the pension plan which non-unionized employees had up to that time (also instituted "paid days off" system and various other things to screw them over so execs could get bigger bonuses...but that's a whole other story). My question: any of you know when the customer service folks pension plan was terminated (and replaced with the 401K defined contribution plan)? That would at least give us an idea of how many years service she has. I'm sure when PBGC sends the info re pension amount, the years of service number will be included, but we figured some of you folks might know exactly when the pension plan was terminated for non-union employees and we wouldn't have to wait for the PBGC info in terms of finding out how many years of service the figure is based on. Btw, PBGC.gov gives the maximum monthly amount various USAirways employees can get but we really have no idea what the monthly pension might be for my wife. Might pay for a couple of happy meals at McDonalds for all we know. I suppose we can reat easy knowing that at least Stephen Wolf is comfortable after his valuable contributions to US Airways.

 

[wings396]

I think that it was around 1992 or so. I know that there was a timeframe when no contribution was made at all prior the startup of the 401K plan.

 

[Dont call me Shirley]

I think that it was around 1992 or so. I know that there was a timeframe when no contribution was made at all prior the startup of the 401K plan.

Wings is right. While much (both good and bad) can be attributed to Wolf and Gangal, the c/s pension plan got whacked long before their watch, during the Scofield area. '92 sounds about right.

The early 'nineties were not happy time for the company.

 

[noname]

I may be mistaken, but I believe it terminated Dec. 31, 1993 when we switched over to PDOs ( Paid Days Off) system. Has your wife signed up for online access at the PBGC.gov website? I've not been online there, but you may be able to locate her info. She can also register there. If she was res/ato/cto the case number should be 20333200.

 

[Hello Newman]

My question: any of you know when the customer service folks pension plan was terminated (and replaced with the 401K defined contribution plan)?

The pension plan was terminated during Schofield's watch in 1992, I seem to tink it was in April or May. The 401k was unveiled later that year and was institued in Jan 1993

PDO's went into effect Jan 1994.

 

[former_usairways]

Thanks to all of you for your comments. Yes, she is registered with PBGC. She requested the annuity computation but it takes over a month. You would think their computers could spit out the numbers a lot faster than that. Anyway, we just wanted to get an idea of how many years it might be based on and that's why the curiosity about when the CS folks got, in plain English, screwed. I could have sworn that W&G were running the shipwreck because I distinctly remember them sending a letter to CS employees telling them not to unionize because the company would look out for their best interests. I can't believe that their pension plan had already been taken away (while the unionized employees kept their pension plan) because that would have made W&G's statements even more ridiculous. But I may very well be wrong. W&G did so many dumb things that it's hard to keep track...Impressions of Excellence (yeah, let's paint over the rotted wood underneath and come up with a grand-looking facade), business select seats, etc. No wonder they were getting such big bonuses! My favorite is when they had Fidelity come up with a US Airways stock fund for the employee's 401Ks. They knew the company was going down the crapper, had already taken away many benefits, cut salaries, etc. But as one last parting shot (and to help sustain the stock price so their stock options would have some value) they provided an opportunity for employees to lose their retirement money by investing in soon-to-be worthless stock. My wife never invested a penny, but I'm sure there were some employees who got burned severely.

 

[Dont call me Shirley]

Not to nitpick, but biz select was before W and G as well.

 

[usa1]

First they terminated my defined pension plan .... but said not to worry .... we'll put money into your NEW 401k at 50 cent on the dollar and you'll retire a lot richer anyway.... then all the executives got a BIG bonus.

Then they encouraged us to buy additional company stock at a 10% discount ...... most of us did ...... I had about $20,000 worth purchased at an average price of $10.00 a share ..... then United came along and wanted to buy it from me at $50.00 a share .... YES!

Then Congress steps in and holds hearings .... DL and NW cry foul ... and the deal is killed. Which sends both United and US Airways into BK again .... where I loose everything .... United employees get dumped on the tax payers back also ..... Congressmen then give themselves a big raise at midnight one night ..... and of course the executives all got a BIG bonus.

The BK judge proceeds to help the companies cut every body's pay package by 40%, the company no longer matches my 401k contributions. And I no can longer pay my bills .... let along up my contributions .... Then the judge gets a raise, the executives exercise their golden parachutes.

Now the "do nothing Congress" has allowed greedy wall street executives to swindle us out of what little we have in our 401's.

So now .... IM looking at a couple 100 bucks of tax payer goverment charity and praying that the IRS will continue the 65% health-care tax rebate so can retire.

Only in America. The final slap in the face would come if the United - US Airways merger is allow in 2009 .... now that we've lost everything.

Oh yea, and don't forget the Social Security program is doomed ..... so you can't even count on it .... if you do see it, it will probably be at age 72 ....

 

[john john]

Passengers Service Employees took major pay and benefit cuts without contract protection. Passenger service employees took the brunt of management’s labor cost cutting pay was frozen for three years. in 1994 1800 passenger service employees were eliminated which represent 85% of all occupational job cuts that year. In 1991 the defined benefit pension plan was change to a 401k. That same year USAir unilaterally cut back on vacation holiday and sick leave and change work rules. Union employees’ benefits did not change because they were protected by their contracts.
Passenger Service Employees elect CWA as there representative September 29,1997.Wolf was hired January 1996
Passenger Service Employees got there very first contract December 13,1999 this after Wolf went thru 3 Federal appeals in court to try to get CWA throw of the property. CWA started to negotiate December 9,10, 1997. Because of USAir improved financials Wolf had a hard time obtaining labor concessions form protected work groups.
The agents and fleet service defined pension plan was terminated in 1991 by management and both groups were non-union. The union groups on the property at the time were mute. Corporate American started this along time ago. The unions and legislatures should have gotten involved along time ago. Some agents were vocal and involved in restoring a better pension plan agents stood up in the non-union roundtable meeting and gave upper management a speech about terminating agent’s pension plan. Lower management was spineless because there defined pension plan was terminated too who in their right mind would allow and endorse their pension plan terminating.
Each passengers service agent contributed $22.214 ayear in concessions in 94,95,96,97,98
We gave up our cost of living raises because of no union contract
We gave up our defined benefit pension plan earlier so the company pay in less we lost 5 years of vesting
We gave up holidays and vacation
We were paid back profit sharing for 92 wages
At the same time
Our executives our management and all the other groups at US Airways continue to receive annual cost of living raises continue to receive their defined benefit person plans
Continue to receive their holiday and vacation days
The passengers service group were the only one's who made financial concessions in those years because we were non-union. Passengers service employees have been left out of discussions because we lack a collective voice without reprehension we have been "rewarded" with more sacrifices in benefits than any other work group and inconsistent new polices and rules

 

[former_usairways]

Passengers Service Employees took major pay and benefit cuts without contract protection.
The passengers service group were the only one's who made financial concessions in those years because we were non-union.
(valuable stuff deleted)
Passengers service employees have been left out of discussions because we lack a collective voice without reprehension we have been "rewarded" with more sacrifices in benefits than any other work group and inconsistent new polices and rules

Many thanks for your very informative post. I automatically assumed Wolf was behind ending the passenger service defined pension plan because he (and Gangwal) did so many horrible things to employees. I guess US mgt had already beaten them to the punch before they arrived to do more damage. Poor Wolf. I remember that because he was so destitute, he negotiated commuting costs from his Middleburg estate to Crystal City into his contract. Also got credit for ALL airline experience (Flying Tiger, a cargo carrier, and others) as if it were US Airways experience for pension computation purposes. Well, that's the least the company could do for him in view of the fantastic results he achieved. I mean, redesigning aircraft livery, putting in rules about female employee hair length (can't touch the shoulder), tapered heels, black ink, etc. What an executive! That has Harvard MBA written all over it. I recall rules about uniformed employees stopping on the way to/from work at a store. Before Wolf's Impressions of Excellence, imagine how much business US lost when another shopper at Safeway, for example, saw a US Airways uniformed employee buying a can of peas (or whatever). I know whenever I see an airline employee shopping, I NEVER do business with that airline again. I sometimes wonder if Wolfie somehow got money under the table as a result of the large Airbus order as a result of his connections with the French aviation industry. Wouldn't surprise me at all.

Anyway, thanks again, and my wife can wait for the PBGC computation to see if her US Airways pension will buy a six pack of Sprite per month, or merely a couple of cans. I guess we'll just have to take some pleasure in knowing that the Wolfman has a secure retirement.

 

[700UW]

The pension was frozen back in 1992, it was not terminated until the end of the second bankruptcy, in 2005.

 

[former_usairways]

The pension was frozen back in 1992, it was not terminated until the end of the second bankruptcy, in 2005.

Unfortunately for my wife, a distinction without a difference for purposes of computing her pension. The big difference is for the higher paid folks, like pilots, who are affected by the PBGC limitations on maximum annuity amounts they'll pay. The REALLY smart/lucky ones were the pilots at Delta who took cash payouts in lieu of an annuity shortly before their plan went south. I don't know if US Airways pilots ever had that option.

 

[john john]

The REALLY smart/lucky ones were the pilots at Delta who took cash payouts in lieu of an annuity shortly before their plan went south. I don't know if US Airways pilots ever had that option.

US pilots had the chance to get there retirement in a lump sum some at a tune of 1 million $

 

[Expectorant]

Many thanks for your very informative post. I automatically assumed Wolf was behind ending the passenger service defined pension plan because he (and Gangwal) did so many horrible things to employees. I guess US mgt had already beaten them to the punch before they arrived to do more damage. Poor Wolf. I remember that because he was so destitute, he negotiated commuting costs from his Middleburg estate to Crystal City into his contract. Also got credit for ALL airline experience (Flying Tiger, a cargo carrier, and others) as if it were US Airways experience for pension computation purposes. Well, that's the least the company could do for him in view of the fantastic results he achieved. I mean, redesigning aircraft livery, putting in rules about female employee hair length (can't touch the shoulder), tapered heels, black ink, etc. What an executive! That has Harvard MBA written all over it. I recall rules about uniformed employees stopping on the way to/from work at a store. Before Wolf's Impressions of Excellence, imagine how much business US lost when another shopper at Safeway, for example, saw a US Airways uniformed employee buying a can of peas (or whatever). I know whenever I see an airline employee shopping, I NEVER do business with that airline again. I sometimes wonder if Wolfie somehow got money under the table as a result of the large Airbus order as a result of his connections with the French aviation industry. Wouldn't surprise me at all.

Anyway, thanks again, and my wife can wait for the PBGC computation to see if her US Airways pension will buy a six pack of Sprite per month, or merely a couple of cans. I guess we'll just have to take some pleasure in knowing that the Wolfman has a secure retirement.

I am a former PSA employee, now retired: It was in 1992 that the pension was frozen for customer service. I had just bought a home in Orlando FL, so remember it well. After 24 years of service, I get $184 a month gross (& I do mean "gross.") And oh yes, no medical benefits. So consequently, I am still working, although elsewhere so that I can get medical and an income, as $184 a month is hard to live on. After what has happened now, I am almost glad i cashed in my 401k, even though I paid all the taxes. I probably still ended up with more $$ than what I would have now, even after the taxes. But it was definitely 1992.

 

[usa1]

I feel your pain ....... 35 years will equal $415.00 a month, minus taxes ....... that might be enough to carry a government subsidized healthcare policy....... This industry crashed 15 years ago, just like my 401k did last week. And at the same time Wolfe and Siegel were shoveling cash out the back door into their personal accounts. So much that their kids will never have to work a day in their life. We work our whole lives slaving over 1000's of cancelled flights for what, to end up surviving on cat food in our old age?

Our situation is all to familiar across America. This country is going down the tube .... Good luck to all.


http://www.sptimes.com/2004/04/20/Business...EO_quits_.shtml