What Rhymes With Enron? Usairways

[livingontheedge]

Redone, Bookmdano,

See CWA local 3641 webpage.....

 

[TechBoy]

Red One,
Go to any of the CWA sites for info on problem with frozen pension fund.

www.cwalocal3641.com (is one site) info is on page 1.....CWA says that the frozen plan is UNDERFUNDED by $270 million.

Oliva,
This has nothing to do with Fidelity and 401-K plans, totally seperate accounts. The Company cannot take any of your 401-K money.
Speedbird86,
Everyone was sent information when the plan was frozen, as to what to expect in retirement. Thru last week, employee benefits would research your plan and send in the mail what they expected to pay out.

The HUB has a letter dated today that says your accounts are still there. What the don't say is that you will still get the amount promised previously.

My problem is that we were NEVER told of even a possibility that these amounts could change. The information sent to me apparently is no longer correct or valid.

I'm not happy about this for any of us. But, I am not surprised. Once a Company crosses the line of integrity and honesty, who knows how low they will go?

Regards,
Father

[post="200627"][/post]​

This is the dumbest thread I have seen in quite some time. (Well, not as bad as the UCT!)

Nothing is "missing" in a fund that is underfunded. It just means that there are not currently enough funds in the plan to pay out the current estimate of the promised benefits. And as US is in BK and will make no new contributions to the plan (and will terminate the plan as well), it will remain underfunded.

While that sucks, the good news is that it is insured by the PBGC and I would guess that most if not all beneficiaries of the fund will get paid in full.

So whine about the awful things that actually happened to you. They're bad enough that you don't need to invent stories about "missing" money.

 

[OldGuyinPA]

So it's ok to be underfunded. As long as our executives know that the PBGC will foot the bill. Maybe, just maybe if they hadn't paid Wolf, Gangwal, Siegel, Crellin, Lakefield and the list goes on such gobs of money they might have had enough to fund the retirement correctly.

Or is it the front line employees fault..........

You Decide......

 

[Fatherknowsbest]

Tech Boy,
What is your problem?

I took time to try to answer questions posed by three posters on the board. Then I offered my opinion that this does not look like good news.

It is obvious that YOU are not in the frozen plan. So fine, you don't have a dog in this fight so skip it, if it doesn't pertain.

Next time why don't you start at page 1.

can't you comprehend.........I didn't start the post.

Regards,
Father

 

[allegheny1]

To All

The frozen defined benefit plan is not missing any funds nor is it underfunded.
In actuality it is the best funded of any d.b.c. plan still under company
control. All plans similar to our frozen plan require additional company
contributions from time to time based on a number of actuarial assumptions.

Since the plan was frozen it was invested very conseratively in a mix of
approx. 50 pct. stocks and 50 pct. bonds. It has not needed any new funds
from 2002 to present and the company admits it will not need any for 2005
or 2006. The company estimates the funds will be needed from 2007-2009
in the neighborhood of 278 million.....assumption only.

The reason the company has moved to terminate the plan is basicly that they
do not want to make furture contributions because it may make them less
competitive with the lcc s. Forget 50 years of promises...labor overpaid and
has to many benefits that the lcc s do not have. They intend to turn this
airline into a startup carrier without a name change.

Yes retirees and those in the process of retiring can be hurt, Some more
than others. Many will only be hit with the monthly service charge the
pbgc imposes to send you a check...anyone above the pbgc maximum for
their age will have their benefit reduced to that figure. You can research
the info. at www.pbgc.gov.

This is not a done deal,for now. Several of the unions will file objections and
I suspect the pbgc will fight the termination. The plan is not distressed nor
currently underfunded. Additionaly the CWA could require, as part of a new
contract, to keep the plan inhouse.

Hope this info is helpfull

regards

 

[Fatherknowsbest]

allegheny1, thank you for the info, if accurate it is indeed helpful. If you read today's USA Today, the PBGC is an absolute mess. Pension defecit of 23 billion for 2004. So the Company is taking a plan that may be funded, and turning it over to the Govt that might run out of money to pay it in the future.
I don't know? This sounds like it could be trouble for many employees/retirees
no matter what. One thing for sure.......stay tuned!


Regards,
Father

 

[Reservation Agent]

The Pensions are underfunded... but they had the cash to give mgt raises in April ? How does that work?... Can you explain that ? Hmmmm