The PBGC today became trustee of the US Airways Groups pension plan for pilots and will assume responsibility for paying pensions to more than 6,000 pilots. The plan is underfunded by $2.5 billion, with $1.2 billion in assets to cover $3.7 billion in liabilities. The agency expects to be liable for only $600 million for US Airways pilots.
Separately, two groups representing retired US Airways pilots are appealing last weeks ruling by a federal bankruptcy court in Alexandria, Va., permitting the airline to shut down the pilots pension plan, said Sherwin S. Kaplan of the law firm of Thelen Reid & Priest, which represents one of the groups. The appeal was filed in U.S. District Court in Alexandria. US Airways must respond to the filing before the court can act on the retirees appeal.