CO/UAL Pension

doh

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I haven't seen this question in the CO/UAL merger threads. What happens to COs defined benefit pension plan?
 

justin15e

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I haven't seen this question in the CO/UAL merger threads. What happens to COs defined benefit pension plan?
Everyone gets their pension back with interest.

You heard it here 1st ;)
 

densoo

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yes
Annuity remains, lump sum conversion of it could be history.
 

jtf

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Enough
How likely is it that some of the over 60s will take the lump if it looks like it may not be a choice any more, or does everyone think that anyone who was going to take the early has already done so?
 

densoo

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It's thin ice. The annuity is untouchable except in bankruptcy, and even then it is backed by the PBGC.

The lump sum can stop two ways. A liquidity shortfall or pilot group votes to end it. Since near 50% have nearly nothing in it, and about a third have been totally hosed by b-scale, furlough, zero work rules except for FARs, it's thin ice.
 

roughneck

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It will be froozen as part of the joint contract and the pilot groups will fall all over themselves to sign on the dotted line. A large equity stake of the combined company will be the carrot. Dl/Nw got 6.9% of the company. I expect these guys will get around 5%.
 
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