SERP Plan

[FrequentFlier1K]

Just a quick question, everyone seems to refer to the SERP pension plan, which was created in 1985 and which of course was funded in 02 starting this controversy.

I was hoping one of the press people would have asked during the Q&A last night during Mr. Carty''s speech, how much actually went into the plan.

I know its the not the amount, but the point that they were protected. Although if it is in the hundreds of millions, I would suggest that in addition to the principle, it diverted material amounts of cash when the company needed it the most.

Lastly, during a BK filing isn''t their a lookback period for insider or related party transactions, could this lookback cover the pension plan funding?

Thanks

 

[Oliver Stone''s Apprentice]

Not sure of the amount, but as to whether or not it would survive judicial review, don''t forget that Wolf and Gangwohl''s compensation packages (worth approx $35M, right?) were approved as is by the court in the US Airways bankruptcy.

My guess is that the SERP would also pass review, since it is related to retirement benefits already earned. The terms date back 17 years, so the only recent change was funding it thru the trust, as opposed to using general funds.

Bankruptcy courts have reversed payments and asset transfers going back one or two years, but I don''t think they''d touch something older than that, nor would they want to set the precedent of touching funds earmarked for retirment in a bankruptcy proceeding.

 

[AAObserver]

Wing, you might be the most naive person on this board from a business perspective. And that''s saying ALOT.

If you put half as much energy into researching US Business as you do in being pissed on at Carty, you might save yourself from looking so silly in the future.

 

[WingNaPrayer]

So in other words what you''re saying is they socked away 17 years worth of retirement payments into that trust? Good gawd! no wonder they don''t want to divulge the amount!!!

***** ***** ***** ***** *****

 

[Oliver Stone''s Apprentice]

No, Wing. As usual, you hear what little you want to and run with it faster than an investigative reporter for Fox News would...

There are a few who have 17 years in the plan, but some of them only have a year or two.