United Airlines pension plans terminated

Beleaguered airline overcomes first hurdle in its attempt to exit from bankruptcy

United Airlines has been relieved of its four employee retirement plans. The bankruptcy court overseeing the company’s Chapter 11 proceedings has terminated the funds and transfered them to the federal agency that guarantees pensions, the Pension Benefit Guaranty Corporation (PBGC).

This signals one of the largest pension defaults in the three decades since the US government started guaranteeing pensions, and serves as a blow to the unions, who are expected to appeal the decision.

The agreement