UAL Pensions to Get Overseer
A legal overseer will be appointed to represent participants in United Airlines’ pension plans now that the carrier has halted contributions, the Labor Department said Tuesday.
“United Airlines’ decision to stop funding its pension plans made clear the need to appoint an independent fiduciary to represent the interests of workers and retirees,” Labor Secretary Elaine Chao said. “This agreement ensures that workers’ interests are protected.”
United’s parent company, Chicago-based UAL Corp., gets to select the company that will serve as the fiduciary, with the department’s approval.
The struggling airline announced last month that it would stop paying into the retirement plans while it restructured under bankruptcy protection. The International Assn. of Machinists and Aerospace Workers, which represents more than 20,000 United ramp workers and customer service agents, has filed lawsuits challenging the airline’s decision.
The fiduciary, to be selected by Sept. 15, will be authorized to review funding and sue on behalf of the plans on issues such as funding and contributions.
United failed to make a $72-million payment last month. Another payment, $400 million, is due Sept. 15.
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