On September 27, 2005, Bankruptcy Judge Eugene Wedoff announced that he would be finding in favor of the PBGC, allowing them to terminate and assume the UAL Pilots Defined Benefit Plan ("Pilot Plan") with an effective termination date of December 30, 2004. Judge Wedoff stated his ruling would not be effective until he issued a written order and opinion, which he planned to do in the near future.
Until the written decision is issued and the Pilot Plan is terminated, the Pilot Plan remains in effect. It remains to be seen whether Judge Wedoff’s written decision will occur before October 1, 2005, the next pension payment date. It is also unknown whether United or the PBGC will attempt to delay or alter the October 1, 2005 payments. Any such attempts will be resisted by URPBPA to the fullest possible extent.
United informed Judge Wedoff it would prefer not to make future non-qualified payments, but Judge Wedoff would not acknowledge that United has the right to do so at this time. URPBPA’s position is that the PBGC case should not affect United’s contractual obligation to make non-qualified payments to retirees and we will pursue that position in court if United does not make the required non-qualified payments on time.
Judge Wedoff stated that his intention to rule in favor of the PBGC was based on his view that the Pilot Plan was likely to terminate anyway because of: 1) United’s past decision to seek termination and not make additional contributions to its pension plans; and 2) ALPA’s agreement with United, wherein ALPA agreed it would not oppose United’s efforts to terminate the Pilot Plan after May 2005. Accordingly, Judge Wedoff saw a substantial increase in PBGC’s liability unless the Pilot Plan was terminated effective December 30, 2004 rather than at some later time.
Upon any written decision by Judge Wedoff which orders that the Pilot Plan be terminated, URPBPA will enter a motion to stay the order and pursue an appeal of the decision.
URPBPA will continue to update this website as further information becomes available.
WEBSITE UPDATE 9-22-05
The trial on the Pension Benefit Guaranty Corporation’s (PBGC) lawsuit to terminate the United Airlines Pilots’ Defined Benefit Pension Plan concluded with closing arguments on September 22, 2005 at 4:00 PM.
Judge Wedoff indicated he plans to issue his ruling on September 27, 2005 at 10:00 AM. The United Retired Pilots Benefit Protection Association will post the ruling as soon as it is available.
Judge Wedoff issued the written decision of his August ruling denying portions of the PBGC’s summary judgment motion late in the afternoon on September 21, 2005. A copy of the decision is posted on this website.
Please click on this link to view the Judge’s ruling.
WEBSITE UPDATE 09-21-05
The trial of the Pension Benefit Guarantee Corporation’s (PBGC) lawsuit to terminate the United Airlines Pilots Defined Benefit Pension Plan commenced in Judge Wedoff’s court today, Wednesday, September 21, 2005. PBGC’s presentation of their case extended into the early afternoon, followed by the United Retired Pilots Benefit Protection Association (URPBPA) and the Air Line Pilots Association’s (ALPA) case.
The trial will continue tomorrow. The Judge’s decision will be posted on this website as soon as it is available.