Bankrupt United Airlines reached an agreement with US pension insurers on Friday to terminate four employee retirement plans which are underfunded by nearly $10 billion. Under the deal, which requires court approval, the federal Pension Benefit Guaranty Corp will assume plans covering 120,000 current and former employees and retired workers at the second-largest airline, a unit of UAL Corp.
These include pilots, flight attendants, mechanics, ground workers and other employees. If approved by the bankruptcy court, the termination would be the largest in PBGC history.
"We think this is a very important agreement," said Jake Brace, United's chief financial officer. "We wanted to resolve (the pension issues) mutually with the unions. The door remains open if there are other pension solutions."