jetcareers - View Single Post

Minnesota_Flyer · September 8th, 2004, 16:32

[ QUOTE ]
Another neophyte/naiive question: If a pilot is in the pension plan, and the company becomes bankrupt, does that former employee lose all pension benefits?

[/ QUOTE ]

It depends on a large number of variables (what type of pension plan, is it funded, unfunded, underfunded, etc.). Short answer: it is very possible for employees and former employees to lose some or all pension benefits in the event of a bankruptcy. That's why you hear about pilots at Delta (and other carriers) taking early retirement and getting their money out of the plan before there's a bankruptcy.

MF

September 8th, 2004, 16:32	#20
Minnesota_Flyer Old Skool Join Date: Mar 2004 Location: the Twin Cities of Minneapolis and St. Paul Posts: 1,961	Re: DELTA CUTS JOBS [ QUOTE ] Another neophyte/naiive question: If a pilot is in the pension plan, and the company becomes bankrupt, does that former employee lose all pension benefits? [/ QUOTE ] It depends on a large number of variables (what type of pension plan, is it funded, unfunded, underfunded, etc.). Short answer: it is very possible for employees and former employees to lose some or all pension benefits in the event of a bankruptcy. That's why you hear about pilots at Delta (and other carriers) taking early retirement and getting their money out of the plan before there's a bankruptcy. MF