A bankruptcy judge has decided to allow United Airlines to back out of playing to their worker's pension plans. <br>United Airlines pension plans are underfunded by 9.8 billion dollars.<br>The Pension Benefit Guaranty Corp will now take over the pension plans and the retired United employees will only get a percentage of the pension that United had promised them.<br>The PBGC had warned that United's pension default might tempt other big airlines to file for bankruptcy-court protection and jettison their own pension plans. <br>But the bankruptcy judge is going to let United Airlines walk away from their responsibility. <br><br>What now is to prevent any company from declaring bankruptcy to stop playing into their pension plans?<br>What about your company?<br>Who is going to help the PBGC pay these pensions? The American people, of course. <br><br>I just recently retired from the airline industry. <br>My pension is very small.<br>It is going to be a very big hardship if my pension check gets any smaller.<br>But in light of these developments I've got to believe my airline will declare bankruptcy in order to stop playing into it's pension plans also.<br><br><br><br><br><br><br><br>
Man, that sucks. Hope you can still make it. <br><br>I'd expect to see more of this...especially from GM and Ford, who have promised big benefits and retirement to the UAW, and financially they can't meet those obligations. <br><br>It's also an important lesson to younger workers...fund that 401K...and don't invest all of your money in the stock where you work (remember Enron?)<br><br><br><br>
Loc: Syracuse, NY
I was wondering if United's announcement would affect you. I remember recent posts where you have expressed concern about this very subject. <br><br>I agree that this decision will open the door for other financially troubled airlines to follow United's lead. <br><br>
Hope there's a favorable resolution for you Clark. Nothing worse than busting your ass for years only to have your future payoff gutted. A couple of years ago I almost accepted an ad agency job in Chicago to run the creative for UAL's direct marketing. But the agency didn't want to pay for relocation, so I didn't go, and I recently learned that the agency is about to close that office because of UAL's predicament. So that's 30+ more people that will be screwed out of an income.<br><br>Good luck, man. <br><br>
I don't know much about GM and Ford but considering how they are really hurting right now I wonder if they would try to pull-off something like this. That was scary earlier this week when S&P rated their bonds as junk.<br><br>401K...some of the young kids are pretty smart these days. They are investing a good percentage of their income into 401K. The problem here of course is you had better hope that the people who are running the 401K for your company know what they are doing.<br><br>
Thank you, Steve and mojo_jojo, Marg, Shelli. <br>Yes, this will effect a lot of people not just United Airlines. <br>I feel bad for the 30 people that you are talking about and all the others that are effected.<br>The repercussions will be felt throughout the country.<br><br>
Don't let this worry you. It hasn't happened but you're putting yourself through the stress and worry as if it has happened.<br><br>Your penson has not been effected, right? Yes, it may, but as of today, it hasn't. Enjoy your life. Live in this moment and this day. None of us knows what's going to happen even 5 minutes from now let alone a week, month, or year. <br><br>And if it does happen, what could you have done to stop it? If nothing, then putting yourself through all this worry is for nothing. Our lives are so short and each moment that goes by can't be retrieved or changed once it's gone. Make each one count. <br><br>On the other hand, if you feel strongly that it will happened, you have time to prepare. If that means you can get a part time job, then you're ahead of the game instead of being blindsided. <br><br>Topper, I'm not trying to make light of your situation in any way. I know what it's like to feel like there's some unseen axe over your head and you never know if that thread holding it up will snap or not. Instead, take control of what you can and don't stress over what you can't. <br><br>I hope you find something in this helpful and may give you peace of mind. <br><br>
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