A federal bankruptcy judge approved United Airlines' plan to terminate its employees' pension plans on Tuesday, clearing the way for the largest corporate-pension default in American history. The ruling, which carries broad implications for U.S. airlines and their workers, shifts responsibility for United's four defined-benefit plans to the government's pension agency. Tuesday's ruling will save United an estimated $645 million a year and sets the stage for similar actions elsewhere.
Judge Clears Runway for Huge Pension Default by United Airlines
The Associated Press
May 11, 2005