Archived News Release Caution: Information may be out of date.
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Release Date: 08/17/2004
Release Number: 04-1599-NAT
Contact Name: Gloria Della
Phone Number: 202.693.8666
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Washington, DC - U.S. Secretary of Labor Elaine
L. Chao today announced that an independent fiduciary will be appointed to
represent the interest of the participants and beneficiaries in United
Airlines’ (UAL) pension plans. |
“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,” said U.S. Secretary of Labor Elaine L. Chao. “This
agreement ensures that workers’ interests are protected.” |
Under
the terms of the agreement, signed today by the U.S. Labor Department and
UAL, the independent fiduciary will be selected by the company, subject to
the approval of the department. The independent fiduciary will be
responsible for issues related to the funding of the pension plans.
Specifically, the independent fiduciary is authorized to: |
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Review the funding policy of the
plans;
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Assert claims; and
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If necessary, bring litigation
related to funding and contribution issues on behalf of the plans.
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In
June, the UAL Board of Directors changed the structure for managing its
retirement plans by eliminating the plans’ administrative committee and
appointing UAL as the sole fiduciary for the plans. On July 15, UAL failed
to make a required $72 million contribution to three of the plans. On July
23, the company announced that it would not make any of its legally and
contractually required contributions to the plans while still in
bankruptcy. Another payment of $400 million is due on September 15. Under
the department’s agreement, UAL must have an independent fiduciary in
place prior to September 15. |
UAL
sponsors four major pension plans covering nearly 120,000 employees. The
company filed for Chapter 11 bankruptcy on December 9, 2002. |
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7765 or TTY 202.693.7755. |
Archived News Release Caution: Information may be out of date.
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