When Nina Beeson started working for United Airlines in 1960, “it was a glamour industry.”
By the time she retired three years ago, “there was just so much tension, a lot of stress,” she said. “As the world changes, the airlines had to change.”
One of United’s changes was terminating its pension plans and turning them over to the federal Pension Benefit Guaranty Corp.
Beeson said she is happy to be getting a pension, although she expects a minor reduction in benefits. She was one of more than 100 United retirees and employees who gathered Tuesday morning to meet with PBGC representatives and learn more about their financial future.
“I just want to know what I can count on. What can I spend out of how much I was supposedly promised?” retiree Doug Dubin asked. “I’m bitter towards the management of the company.”
Others seemed resigned to the changes.
Many who are already retired learned that they will see no reduction. The PBGC estimates that 42 percent of retired ground employees, 30 percent of retired management, administrative and public contact employees, and 2 percent of retired flight attendants will see a reduction in pension benefits.
United employees and retirees may be most concerned about the federal pension insurance agency’s $23 billion deficit.
“It bothers me that all the airlines want to turn their retirement plans over to the government,” retiree Arvil Pugmire said.
The PBGC is “going to be inundated,” he said. “I don’t see how they’re going to keep up with it.”
The PBGC in some cases can sue employers to recoup more of the shortfall in pension plan funding. It settled with United last year on termination of the pension plans.
The PBGC, which was a creditor in the United bankruptcy case, now owns about 23 percent of United parent UAL’s new shares. Some of its proceeds from selling its creditor claim could go toward increasing United retirees’ benefits.
Separately, United last week struck a deal for PBGC to be the interim trustee of the pilot pension plan. Many retired pilots stand to sustain some of the largest benefit reductions.
The PBGC expects to hold information sessions on the pilot pension plan in April.
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or at kyamanouchi@denverpost.com.
