Fri, Aug 04, 2006
NWA Says Bill Gives Time To Save Pensions
So much for the opposition. CFO.com
reports that by a somewhat lopsided vote of 95-5, the Senate late
Thursday night passed the Pension Protection Act -- a
pension reform bill aimed at making it easier for cash-strapped
airlines to repay their pension funds.
Supporters of the bill -- which now goes to President Bush for
approval -- say the new legislation bolsters existing pension
funding rules, by requiring companies to repay their pension
obligations within seven years. Detractors of the bill maintained
the legislation favors airlines that have chosen to freeze their
pension funds, by giving those entities a total of 17 years to make
good on the funds.
One airline seen as benefiting from the bill, Northwest
Airlines, expressed its gratitude shortly after the bill was
passed.
"On behalf of the 73,000 participants in Northwest Airlines'
pension plans, and the families that depend on them, we thank all
of the members of the House and the Senate that supported this
important legislation," said Northwest President and CEO Doug
Steenland to Aero-News. "While there have been many people involved
in this effort, Northwest and its employees would like to
especially thank the broad, bi-partisan coalition [from]
legislators."
Along with Continental Airlines and similarly troubled Delta Air
Lines, Northwest has negotiated pension plan freezes with its
unions, which would also freeze the liability for the Pension
Benefit Guaranty Corporation (PBGC) -- thus giving the airline more
time to repay the funds currently obligated.
"With employees making the difficult decision and sacrifice to
freeze their pension plans, all of us looked to Congress for the
additional time required to save our plans," said Andrea Fischer
Newman, senior vice president of government affairs. "Tonight, the
legislative branch of our government has spoken and protected
airline employees' retirement benefits and U.S. taxpayers."
The pension bill was the last piece of legislation passed by the
Senate before lawmakers left for a month-long recess.
More News
Maximum Authorized Altitude A published altitude representing the maximum usable altitude or flight level for an airspace structure or route segment. It is the highest altitude on >[...]
Aero Linx: Soaring Safety Foundation (SSF) The Soaring Safety Foundation (SSF) is the Training and Safety arm of the Soaring Society of America (SSA). Our mission is to provide ins>[...]
From 2013 (YouTube Version): Dracula Lives On Through Kyle Franklin... and We're NOT Scared! ANN CEO and Editor-in-Chief, Jim Campbell speaks with Aerobatic and airshow master, Kyl>[...]
“For Montaer Aircraft it is a very prudent move to incorporate such reliable institution as Ocala Aviation, with the background of decades in training experience and aviation>[...]
Also: ForeFlight Upgrades, Cicare USA, Vittorazi Engines, EarthX We have a number of late-breaking news highlights from the 2024 Innovation Preview... which was PACKED with real ne>[...]