"Legal overseer appointed for United Airlines' pension plans"

Tuesday, August 17, 2004

Legal overseer appointed for United Airlines' pension plans 
The Associated Press


WASHINGTON (AP) -- A legal overseer will be appointed to represent
participants in United Airlines' pension plans now that the carrier has
halted contributions, the Labor Department said Tuesday. 

"United Airlines' decision to stop funding its pension plans made clear
the need to appoint an independent fiduciary to represent the interests
of workers and retirees,'' Labor Secretary Elaine Chao said. "This
agreement ensures that workers' interests are protected.'' 

United's parent company, Chicago-based UAL Corp., gets to select the
company that will serve as fiduciary, with the department's approval. 

The struggling airline announced last month it would stop paying into
the retirement plans while it restructures under bankruptcy protection.
The International Association of Machinists and Aerospace Workers, which
represents more than 20,000 United ramp workers and customer service
agents, has filed lawsuits challenging the airline's decision. 

The company to be selected by Sept. 15 will be authorized to review the
plans' funding and sue on behalf of the plans on issues such as funding
and contributions. 

United failed to make a required $72 million payment last month. Another
payment of $400 million is due Sept. 15.


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