Where's my pension ?
May 11, 2005 5:33 PM Subscribe
UAL (United Airlines) dumps four pension plans[optional audio interview with Businessweek expert] ; bankruptcy court authorizes shifting of USD 5 billions (allegedly largest pension default in U.S. history) in pension obligations to the Pension Benefit Guaranty Corp. As a result the burden of private failure and incompetency will be shared by all taxpayers (whose taxes finance PBGC which is already operating on a 23 Billion deficit) and by beneficiaries of the pension plans who will see their pension severely cut : pilots from 100K to 30K pensions but also less privileged workers will be hit. For instance Mrs Tamuk, spokeswoman from Association of Flight Attendants said her pension will be reduced from $1,700 a month to $800 a month.
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