Fellow Pilots

>I was in Washington D.C. last week to meet with my congressional reps.
>Worthwhile. Informative. I left data at each office and appreciated the
>contacts. Also had dinner with an employee of the Justice Department that I
>have known through Navy Academy contacts. Again informative.
>At the end of the week Rep George Miller had introduced his bill to stop
>the UAL pension transfer to the PBGC for six months. That would be welcome.
>It would give all of us some thinking time. And it gave me a little energy.
>This week on the Hill is the fight over judicial nominations but I am told
>that there are many side discussions happening. Hopefully, that includes
>representing our pension rights.
>What I have learned is that there may still be opportunity to challenge
>UAL and the PBGC before they are allowed to steal our pension. D.C. may not
>care that much, but would welcome options. What I heard repeatedly was "But
>ALPA wants this!" in exasperation. 'Seems our greatest threat in D.C. is not
>even UAL or the PBGC but ALPA's "will not oppose." policy.
>For whatever it's worth, here are a few options that surfaced:
>The pilot pension does NOT have to be 100% funded to be frozen. Freezing
>the fund even at this late hour is still the right thing for ALPA to pursue.
>Rep. Miller supports this option.
>ALPA and the UAL could agree to "forgive" UAL's payments to the pilot
>pension for a number of months and very possibly years as the pilot pension
>fund could continue to pay out with no further contributions for a number
>(15+?) of years. "Forgiving" UAL's payment obligation for a period of time
>would require agreement between ALPA and UAL and the appropriate federal
>approvals. Approval for any move that would take the pension off the back of
>a bankrupt federal agency would be welcomed in D.C. This move is possible.
>Even at this late hour.
>The possibility of an agreement between ALPA and UAL to "forgive" payments
>was new to me. It is very interesting.
>Freezing and "forgiving" would stop the accrued obligation for UAL. Any
>future contribution could be contractually triggered by a performance level
>that would satisfy the exit financeers. Or, the pilot pension obligation
>could just be "forgiven" for a set period of time, and extended by agreement
>between both parties.
>One D.C. advisor stressed that the retired and non-retired UAL pilots are
>in need of the 2004 Summary Report for the pilot pension performance NOW.
>UAL pilots retired and non-retired also need the 2005 monthly summaries. I
>have been unable to obtain this through UAL. ALPA should demand these
>reports NOW and distribute this information to all the pilots. Does anyone
>out there have the data? ALPA, UAL and the PBGC may be giving away a $3
>Billion dollar cash cow and hoping that the pilots won't be informed and
>therefore won't respond to freeze their fund.
>And, the pilot pension could be restored. That could be mandated by PBGC
>oversight (which really needs to improve). Restorating a pension is a tough
>fight but we need to know that it is possible.
>Our greatest risk this week is that if our nearly $3 Billion dollars is
>stolen by the PBGC, our pilot pension money could be appropriated to others.
>Reportedly UAL has wording in the PBGC agreement that would direct 25% or
>approximately $750 Million of our money. Anyone have any bets who they are
>going to give our money to?
>The additional 9% (in notes) that the non-retired pilots are receiving in
>their "B" plan could be dedicated to the "A" plan. Again, this would require
>agreement and approval. This option would keep the "A" plan alive for all
>pilots and would be no greater impediment to exit financing than a pledge to
>the "B" fund. The exit financeers just don't care. Reportedly Judge Wedoff's
>court commented on the 9% obligation costing UAL MORE than funding the "A"
>plan. And notes can be pledge to a pension fund with agreement between the
>two principal parties (UAL and ALPA) and federal approval. D.C. wants such
>an agreement rather than the mess that UAL is dumping on them.
>The most frustrating part of this experience is that our pilot pension is
>viable. In the last Summary Report available, the fund paid out
>approximately $400 Million. The 6,000 or so of us who received that money
>earned the benefit. The fund reported a $215 Million dollar profit AFTER the
>payout. The pilots who earned the money will never receive the $3 Billion
>that is in the fund. And I have no idea why this viable fund has to be
>stolen.
>It's not exit financing. There are options.
>Again, what's next?
Rich