Reply #89: US Airways pilots union sues pension agency [View All]

[AnneD]

WASHINGTON — The pilots union for US Airways filed suit Wednesday against the federal government's pension agency, claiming it is not doing enough to investigate charges that the airline's pension plan was mismanaged.
The U.S. Airline Pilots Association wants the Pension Benefit Guaranty Corp. removed as trustee for the plan and replaced with someone who will actively pursue charges of misconduct.
A complaint filed in U.S. District Court says the pension plan was almost fully funded in 2000. But the plan lost about $2.1 billion over the next two years and the airline sought bankruptcy protection.
A bankruptcy court later terminated the plan.
Union officials say the massive losses were unusually high and claim they have uncovered "questionable circumstances" showing the assets may have been improperly invested.
"Our request to the PBGC for a thorough investigation has fallen on deaf ears," said union president Mike Cleary.
The PBGC, which insures the retirement benefits of 44 million Americans, took over control what was left of the pilots' pension plan in 2003. Retiring pilots now stand to get only a tiny fraction of the benefits they were expecting.
A PBGC spokesman had no immediate comment.
Earlier this year, the US Airways pilot celebrated for making a successful emergency landing on the Hudson River in New York testified in Congress about the financial plight of his company's pilots.
"My pay has been cut 40 percent," Chesley "Sully" Sullenberger III told lawmakers. "My pension, like most airline pensions, has been terminated and replaced by a PBGC guarantee worth only pennies on the dollar."



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Pilots have mandated early retirement and thus a short time to make their money. These guys were royally screwed and deserve justice. I can only imagine getting 40% of what I was counting on to live the rest of my life on. No way to plan around that