This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pension Bailout for US Airways

The U.S. government's pension insurer said Wednesday it had taken over the pensions of US Airways' (UAIRQ) machinists and flight attendants.

The Pension Benefit Guaranty Corp. estimates the underfunded pension plans will cost it $2.3 billion. That comes on top of a $726 million claim for US Airways' pilot pension plan, which the PBGC took over in 2003. The airline's $3 billion total claim is the second largest in PBGC history after Bethlehem Steel's $3.7 billion claim in 2003.

"The PBGC will protect the pension benefits of US Airways' workers and retirees," said Bradley Belt, the federal corporation's executive director. "But the pension safety net is badly frayed."

The White House has proposed reforms aimed at helping the PBGC meet its obligations. The federal corporation receives no tax revenue and funds operations largely by insurance premiums that companies with pension plans pay.

The PBGC's latest move was expected after the judge overseeing US Airways' Chapter 11 bankruptcy last month authorized the termination of the flight attendants' and machinists' pensions.

In December, the PBGC moved to take over responsibility for pilot pensions at UAL's (UALAQ) United Airlines. It expects to be liable for about $1.4 billion of that plan.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $112.12 0.00%
FB $93.24 0.00%
GOOG $643.61 0.00%
TSLA $220.69 0.00%
YHOO $32.52 0.00%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs