Sunday, March 02, 2003

The Pension of Last Resort

Why we need social security reason 10 million....

ALEXANDRIA, Va. (Reuters) - A federal judge ruled on Saturday night that US Airways Group Inc. (UAWGQ) could terminate its pilots' pension plan, saying it was a disheartening option to help save the bankrupt carrier.

Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia cleared the way for the company to seek federal government approval of its proposal to replace the pension plan with a cheaper one.

The pension plan covers 3,600 active and 1,100 retired pilots, some of whom could lose up to 75 percent of their benefits under the proposal.

The government is the only entity that can be expected to (maybe) honor contracts lasting 50 years or more. Ditto for medicare.