Super Bummer.<br><br>However I heard that the Feds will pick up the tab - sorta bail out United pension fund via tax payers dollars <-- I did say heard from 3rd party who was complaining that the tax payer picking up the tab, he felt the money for the pension should come from the Stock Holders.<br><br>
This is probably the way it will play out:<br>United Airlines will give the PBGC 1.5 billion dollars.<br>The PBGC will pay out 5 billion dollars to United Airline employee pension plans.<br>Some (all?) United Airline employees will see a cut in their pension checks.<br>I believe the American tax payer will pick-up 3.5 billion dollars.<br><br>Here is another slap in the face by United Airlines...they are now in the courts trying to get their unions dissolved.<br><br>It will be interesting to see what happens when a lot of other companies tell the PBGC that they don't have the money to pay their pension plans either.<br><br><br>
That's the problem with company-provided pensions. What they promise is only as good as the company making the promise. <br><br>The company where I work is an enormous corporation....one of the biggest...but I passed on their pension plan and opted for the 401K. I also don't participate in buying company stock. All for the reason of what you're going through with UAL. <br><br>Hope it works out for you man and you get all or most of what you're owed. <br><br>
Not sure on how that would work but.<br><br>the 99 cent stock holder would take a hit down to 50 cents per share. The 49 cents would thus go in the pension fund.<br><br>Considering that stock money goes into a "General Account" and not a "Pension Account" = completely different animals any bean counter will tell you that switching money from one account to another is illegal, like Enron funny money.<br><br>Now United is face with the obligation of setting funds aside to meet the expected pension burden in the future. They just don't have the cash.<br><br>401Ks<br>I believe in those only because the company cannot go in and fumble the money.<br>401s at-least give you some choices on where to place yer bets. <br><br>What I would like to see is a 401 that gives you an option to place your pension, where you want it, and not govern by a yahoo who you never met ? I also like to see the Social Security turn all 401 = that will give me the chance to get out of another bankrupt system<br><br>
<blockquote><font size=1>In reply to:</font><hr><p>the 99 cent stock holder would take a hit down to 50 cents per share. The 49 cents would thus go in the pension fund.<p><hr></blockquote><p>Huh? When a stock first goes to market is the only time the issuer (corp) gets paid. After that, the stock is traded in the marketplace. If a stock pays no dividend there's nothing the issuer can do to effect a stockholder (other than screw up and drive the stock price down). Which it appears United has done. <br><br>
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