WP: Human Toll of a Pension Default

[Pirate Smile]

Human Toll of a Pension Default

By Dale Russakoff
Washington Post Staff Writer
Monday, June 13, 2005; Page A01

Ellen Saracini lost her husband, United Airlines Capt. Victor J. Saracini, when his Flight 175 crashed into the World Trade Center on Sept. 11, 2001. Now she stands to lose more than half of her widow's pension in a very different kind of crash -- United's default of its $9 billion pension obligations.

The scale of the default, the largest in U.S. history, has until now received more attention than the toll on the lives of the bankrupt airline's 120,000 employees and pensioners. Saracini discussed its impact on her and her two daughters in an interview yesterday, saying she hopes her story will help shift the focus to the laws and policies that allow such defaults.

-snip-
Saracini was among about 2,000 United pensioners and employees who e-mailed their stories to Rep. George Miller (D-Calif.) in recent days for what he called an online hearing on the human impact of the default. "We have been overwhelmed -- both numerically and emotionally -- by the response," said Miller, one of several politicians in both parties warning that a wider crisis will loom if the nation's pension security laws are not revised.

-snip-
In e-mails to Miller that his staff is posting online, and in interviews, United retirees recounted stories of job-hunting in their sixties and seventies, facing medical costs they no longer can afford, uprooting families to move to lower-cost communities, selling dream retirement homes and losing money they had counted on to support elderly parents.

http://www.washingtonpost.com/wp-dyn/content/article/2005/06/12/AR2005061201367.html

[barb162]

1. oh yes it takes a catastrophic toll on people, especially those

nearing retirement age, especially if they were not saving much THINKING they were going to be getting their pensions till the day they died. It reminds me a lot of the Arthur Andersen retired partners who weren't getting their annual stipend anymore once their firm collapsed. It reminds me of steelworkers and so many others who were getting the money already ( or just about to retire) and then the money stops coming in. You planned for it and then it just stops.

[Deja Q]

2. Culture of life. Thank * for allowing 9/11 to happen as well.

[Lindsay]

3. Good on the WaPo for putting this on page one.

And good on George Miller for thinking up the online hearing. This allowed people to testify who could no way afford to fly to DC.

[tmooses]

4. These were pensions that were part of negotiated contracts.

United should not be let off Scot free while they declare bankruptcy
because of the incompetence of their corporate execs. This is only the beginning of corporations, who are living in the most corporate friendly administration I can remember, defaulting on their pensions.
We cannot let them get away with this-hopefully articles like this will
bring some light on how Bush has sold out this country to corporate interest at the expense of working people.

[Erika]

6. These pension defaults will be paid by us, the American taxpayers

under the Pension Guaranty Act. The execs will still make millions but we will stuck for the pensions. That is why this Act may be folded into the SS reform bill. But, execs will make and take off with millions. Bush loves the rich people.

[short bus president]

9. at MAYBE $.50 on the dollar

and I believe I recall reading something in here just yesterday about some right-sided congresscritters talking about "reform" in the Pension Guaranty Act.

None of the pensioners should be shorted one dime until none of the execs has another drop of plasma to sell.

[Erika]

5. Welcome to Bush's America

The ultra rich have never had it better. I can't stand to listen to any Republican talking about how Christian the Republicans are.

[barb162]

10. yes it is here and why aren't voters getting it through their

thick skulls that the Bush America is not something they want.

[VaLabor]

7. The online hearing can be found here.

http://edworkforce.house.gov/democrats/unitedhearing.html

[xchrom]

8. corporatists who want to get rid of pension plans

are imbedded in both political parties.