Sunday, June 1, 2008

Don't Count on Penison

Workers "shouldn't be counting on their pension" said Brian Leitch, a lawyer representing US Airways. The statement was made after management asked a federal bankruptcy judge to authorize reductions in its pension.
This may be worth noting as the OTPP recently hired Rakesh Gangwal, former US Airways Group Inc. chief executive officer, as a "senior advisor." Gangwal worked for the company from 1996 to 2001. On August 11, 2002, US Airways Group, Inc. filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. US Airways terminated its pensions.
The federal government's Pension Benefit Guaranty Corp. (PBGC) took over the pension plan from US Airways. The plan was about 40% funded. The federal agency covered a percentage of that amount.

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