2005-01-11
US Airways to End Several Pension Plans - - CFO.com: "the US Airways deal underscores the fact that as more and more shaky companies terminate their pension plans, the PBGC's ability to guarantee future payments is growing more tenuous. This deal alone will cost the PBGC $2.3 billion, reported The Wall Street Journal, and if the agency had taken over the pension plan of UAL's pilots, the agency would have been liable for an additional $1.4 billion.
According to the Journal, the Bush Administration will likely require all companies with defined-benefit plans to pay higher premiums to the PBGC. One proposal calls for economically shaky companies to pay higher premiums than companies that can demonstrate they are in good financial shape and probably won't need to be bailed out."
According to the Journal, the Bush Administration will likely require all companies with defined-benefit plans to pay higher premiums to the PBGC. One proposal calls for economically shaky companies to pay higher premiums than companies that can demonstrate they are in good financial shape and probably won't need to be bailed out."
