Pilot Pension Anger is Growing & Enormous

[chipmunn]

Savvy:

Were the comments by Siegel and Bronner to the news media about the airline liquidating or my USaviation comments about pilot distraction, designed to tell pilots to be vigilant of the issue, more harmful?

In my opinion, it is better to identify the problem and post a rememdy than to "stick you head in the sand" and pretend the issue does not exist.

There is nobody who cares as deeply about this company as me and I believe it is important to discuss safety issues to help prevent a catastrophe. Evidently so does the FAA.

Chip

 

[Retired1]

us10--Thanks. This looks like a real mess. I guess the way the PBGC is acting it wouldnt even do any good to just freeze the pension and start with something else. It looks like the PBGC says no to any and all alternatives.

 

[us10]

[blockquote]
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On 1/21/2003 1130 AM Retired1 wrote:

Chip----If a retired pilot did not take the lump sum and the company terminates the plan, is the retired pilot stuck with the maximum 28,000.00 in the future? It is my understanding the company wants to do the retirement a different way but it would be made whole again when they were done. Would a pilot that retired say four years ago be made whole again too or just the pilots that are working now?
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[/blockquote]

Retired1,there are those who think the "follow-on" plan the company has pledged to establish for the pilots will fix everything.It won't, the PBGC has made it clear they will not allow an ongoing company to in their words:"dump its pension liabilities on the insurance system and then attempt to provide its workers with substantially the same benefits (incombination with PBGC's guaranteed benefits) as if the plans had never terminated." .... PBGC makes it clear if they take over the pilot's plan the pilots must suffer.They expressly forbid a company from making their pensioners whole after the termination.I'm sure the PBGC will let the company know in no uncertain terms what they will or will not allow.

My understanding is a pilot who has been retired at least 3 years is beyond the PBGC's grasp and will be allowed to keep his current benefit.Pilots who have been retired less than 3 years will have their annuity adjusted down.Whether the PBGC can demand the return of the lump sum is debatable.

 

[savyinvestor]

[blockquote]
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On 1/21/2003 12:29:51 PM chipmunn wrote:

Savvy:

Were the comments by Siegel and Bronner to the news media about the airline liquidating or my USaviation comments about pilot distraction, designed to tell pilots to be vigilant of the issue, more harmful?

In my opinion, it is better to identify the problem and post a rememdy than to "stick you head in the sand" and pretend the issue does not exist.

There is nobody who cares as deeply about this company as me and I believe it is important to discuss safety issues to help prevent a catastrophe. Evidently so does the FAA.

Chip




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[/blockquote]
Captain Munn, In this case both comments were harmful. I believe your comments are valid, but not necessary on this board . Your concerns could have been addressed elsewhere IMHO. Savy

 

[RowUnderDCA]

US10-

Thanks for addressing my question, too. We'll see. Boy, these ripple effects are amazing! Now, Ive got a whole new set of concerns (milder than most, thankfully).

Good luck to all.