NEWS: United Airlines Wants to Back Out of Pension Obligations

As predictably as the sun rises in the east United Airlines is following the lead of US Airways. United is going to cut payments of about $6.1 million monthly for unqualified benefits impacting 3,100 retired pilots. This is all while they wait for the bankruptcy court to rule if, how or when United will be allowed to terminate their pension plan completely.

I was plenty upset when US Airways pulled this little manuever. In that post I warned that United was taking notes. So now we see the airline simply stopping payments on some benefits. Furthermore, United is indeed pressing the court to have the federally run Pension Benefit Guaranty Corp. take over the pilot's pension fund. This is the same organization that got saddled with the terribly underfunded US Airways pension fund. I'd like to see the bankruptcy court tell United that they have to cover the pilots pension plans but you and I both know that's highly doubtful.