networking
Advanced
- Sep 1, 2002
- 120
- 0
Category: SPECIAL BULLETINS
Start Date: 09/12/2004 End Date: 10/27/2004 Status: 30 Published
--------------------------------------------------------------------------------
To All Employees ... Please Post ... Special Bulletin
We would like all employees to understand what the
Company has and has not done in the reorganization
proceedings regarding employee pension plans.
As we entered bankruptcy, it was critical that we did
everything possible to conserve cash. The funding of
employee pension plans was one of the largest near-term
financial obligations that the Company faced. Despite
that fact, we recognized that continuing to fund your
existing pension plans, even as we seek to restructure
those plans to fit within the low cost model, was
important. As a result, we filed papers asking the
court for authority to continue paying and funding
pension benefits for all employee groups as we go
forward.
However, we also had accumulated significant pre-
petition pension funding obligations of approximately
$135 million. Pre-petition funding obligations are
those that accrued prior to September 12, 2004, and had
not yet been funded as of that date. In an effort to
carefully conserve our cash and do everything possible
to ensure our survival, we are not seeking permission
from the court to fund these pre-petition pension
funding obligations.
How this affects you depends on your pension plan.
For those of you participating in a defined
contribution retirement:
It is only the Company-funded portion of the pension
that has not been funded on a pre-petition basis. Your
contributions have not been affected. All of the money
that you have had deducted from your pay to put in your
401(k) account has been and will continue to be funded
to your accounts. However, to the extent that the
Company had matching contributions to fund (in the US
Airways, Inc. 401(k) Savings Plan, or the US Airways.
Inc. Employee Savings Plan) or other contributions to
fund (the Base accounts in the US Airways, Inc.
Employee Pension Plan, or the funding of the Retirement
Savings Plan for Pilots of US Airways. Inc.), those
contributions have not been made. Additionally, the
non-qualified portion of the Retirement Savings Plan
for Pilots of US Airways, Inc., is not being credited
for pre-petition accruals that had not previously been
credited.
For those of you participating in a defined benefit
retirement plan:
Any Company funding for those plans that is due as a
result of pre-petition accruals has not been made.
This includes the Pension Plan for Employees of US
Airways Who Are Represented by the IAM, and the
Retirement Income Plan for Flight Attendants in the
Service of US Airways, Inc. This would also apply to
the funding of the IAM National Pension Fund, in which
Fleet Service Employees and Maintenance Training
Specialists participate.
A letter is being sent to plan participants in those
plans that are administered by the Company and that
have been affected by this treatment of pre-petition
funding, advising them of the appointment of an
independent fiduciary. The independent fiduciary will
represent the interests of the Plans and Plan
Participants in certain limited matters relating to
possible claims, if any, on behalf of the participants
in connection with the Company's failure in making the
contributions described above due to the bankruptcy
proceeding. Appointment of an independent fiduciary
avoids any real or perceived conflict of interest in
connection with decisions to be made on behalf of the
Plans and the participants with respect to the
Company's bankruptcy proceeding.
We will provide more detailed information about this
matter in the very near future.
End of Special Bulletin for Monday, Sept. 13, 2004
Corporate Affairs/Telex:HDQCYUS/COMAT
CA-H850
Looks like its a $135.00 million write off.
Also...it is not business as usual. The other night we did backflips trying to get someone to deliver our luggage to passengers. No one would take U's vouchers. Finally one cab company agreed and made us wait an hour after we were due off to come and pick them up. Seems as though the previous delivery company was ripped off $10,000 on the first bankruptcy and now he is owed $12,000 before Sunday the 12th. They were very reliable.
Start Date: 09/12/2004 End Date: 10/27/2004 Status: 30 Published
--------------------------------------------------------------------------------
To All Employees ... Please Post ... Special Bulletin
We would like all employees to understand what the
Company has and has not done in the reorganization
proceedings regarding employee pension plans.
As we entered bankruptcy, it was critical that we did
everything possible to conserve cash. The funding of
employee pension plans was one of the largest near-term
financial obligations that the Company faced. Despite
that fact, we recognized that continuing to fund your
existing pension plans, even as we seek to restructure
those plans to fit within the low cost model, was
important. As a result, we filed papers asking the
court for authority to continue paying and funding
pension benefits for all employee groups as we go
forward.
However, we also had accumulated significant pre-
petition pension funding obligations of approximately
$135 million. Pre-petition funding obligations are
those that accrued prior to September 12, 2004, and had
not yet been funded as of that date. In an effort to
carefully conserve our cash and do everything possible
to ensure our survival, we are not seeking permission
from the court to fund these pre-petition pension
funding obligations.
How this affects you depends on your pension plan.
For those of you participating in a defined
contribution retirement:
It is only the Company-funded portion of the pension
that has not been funded on a pre-petition basis. Your
contributions have not been affected. All of the money
that you have had deducted from your pay to put in your
401(k) account has been and will continue to be funded
to your accounts. However, to the extent that the
Company had matching contributions to fund (in the US
Airways, Inc. 401(k) Savings Plan, or the US Airways.
Inc. Employee Savings Plan) or other contributions to
fund (the Base accounts in the US Airways, Inc.
Employee Pension Plan, or the funding of the Retirement
Savings Plan for Pilots of US Airways. Inc.), those
contributions have not been made. Additionally, the
non-qualified portion of the Retirement Savings Plan
for Pilots of US Airways, Inc., is not being credited
for pre-petition accruals that had not previously been
credited.
For those of you participating in a defined benefit
retirement plan:
Any Company funding for those plans that is due as a
result of pre-petition accruals has not been made.
This includes the Pension Plan for Employees of US
Airways Who Are Represented by the IAM, and the
Retirement Income Plan for Flight Attendants in the
Service of US Airways, Inc. This would also apply to
the funding of the IAM National Pension Fund, in which
Fleet Service Employees and Maintenance Training
Specialists participate.
A letter is being sent to plan participants in those
plans that are administered by the Company and that
have been affected by this treatment of pre-petition
funding, advising them of the appointment of an
independent fiduciary. The independent fiduciary will
represent the interests of the Plans and Plan
Participants in certain limited matters relating to
possible claims, if any, on behalf of the participants
in connection with the Company's failure in making the
contributions described above due to the bankruptcy
proceeding. Appointment of an independent fiduciary
avoids any real or perceived conflict of interest in
connection with decisions to be made on behalf of the
Plans and the participants with respect to the
Company's bankruptcy proceeding.
We will provide more detailed information about this
matter in the very near future.
End of Special Bulletin for Monday, Sept. 13, 2004
Corporate Affairs/Telex:HDQCYUS/COMAT
CA-H850Looks like its a $135.00 million write off.
Also...it is not business as usual. The other night we did backflips trying to get someone to deliver our luggage to passengers. No one would take U's vouchers. Finally one cab company agreed and made us wait an hour after we were due off to come and pick them up. Seems as though the previous delivery company was ripped off $10,000 on the first bankruptcy and now he is owed $12,000 before Sunday the 12th. They were very reliable.
