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UAL Dumps Pension liability; who's next
Eddie
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The Judge in United Airlines (Chapter 11) Bankruptcy hearing allows UAL to set aside its Employee Pension liability and transfer it to The Pension Benefit Guaranty Corp (Taxpayer-funded Federal Agency). This sets a precedent for a whole bunch of U.S. Corporations, like Delta Airlines and General Motors to follow.

Now, Social Security becomes a more significant part of employees’ post-retirement income (for financial planning). A United Flight Attendant, age-49, was looking at a UAL Pension of $1800: Now she says it will be $800/mo.

George W. Bush keeps telling us that Social Security was intended to supplement Private Pension Plans and individual investments. Now that Companies are being allowed to default on those Private Pension plans, Social Security becomes a larger part of individual financial planning for those ‘golden years.’

I hope President Bush recognizes this and ‘backs off’ his so called reform plan for Social Security.