Tag Archives: pbgc

Bankrupt Hawker Beechcraft Pensions Only 56% Funded

Posted on 8 May 2012 by Ken Zino

Collectively, Hawker Beechcraft’s three pension plans are only 56% funded, with $769 million in assets to cover $1.4 billion in benefits. If Hawker Beechcraft ended the plans under the bankruptcy, the Pension Benefit Guaranty Corporation of the U.S. Federal government would pay $533 million of the $611 million shortfall. PBGC is the company’s largest creditor. Continue reading →

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PBGC, Bendix Reach Settlement, End Litigation over Pensions

Posted on 2 May 2012 by Ken Zino

Critics of the federal agency say it has been lax and ineffective in protecting pensions. Under today’s settlement, PBGC won’t require Bendix to put up collateral for the remaining $8.4 million in pension liability, provided the company remains financially strong until the end of the year. Continue reading →

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American Airlines to Freeze not Kill Pensions in Union Victory

Posted on 7 March 2012 by Ken Zino

The so-called pension freeze covers unionized flight attendants and other ground workers, but does not cover American Airline pilots because their pension plan includes a lump-sum payment upon retirement. It would have been possible for some of them to flee the once proud airline, meaning American would have an expensive aviation museum consisting of planes largely on the ground. Continue reading →

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PBGC Says American Airlines Workers Should Worry About Pensions and Medical Care – So Should Taxpayers

Posted on 30 January 2012 by Ken Zino

The Pension Benefit Guaranty Corporation has called out what it says is misleading statements to American Airlines employees by its management about their pension plans under a bankruptcy reorganization. “American Airlines is telling their workers and retirees not to worry, … Continue reading →

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American Airlines Files for Bankruptcy – Pensions Threatened?

Posted on 29 November 2011 by Ken Zino

American Airlines has four traditional pension plans that cover almost 130,000 participants. As of today, the plans collectively had only about $8.3 billion in assets to cover about $18.5 billion in benefits, according to the Pension Benefit Guaranty Corporation. If American Airlines were to end their plans, the agency would be responsible for paying about $17 billion in benefits; about $1 billion in benefits would be lost. Continue reading →

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PBGC Sues Bendix for Pension Debt from Plant Closing

Posted on 28 October 2011 by Ken Zino

The action against German-owned Bendix is the first time PBGC has had to go to court to compel a company to cover pension obligations from a plant closing. Continue reading →

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