A lawsuit by US Airways Group Inc. and its debtors against the PBGC over the agency's valuation of the airline's terminated pilots' pension plan will be heard by Judge Stephen S. Mitchell Oct. 27 in the U.S. Bankruptcy Court in Alexandria, Va. The plaintiffs claim the PBGC overstated the plan's liabilities by using "unrealistic actuarial assumptions that artificially inflate the value of the claim." The PBGC, which took over the underfunded pilots' pension plan after US Airways terminated it on March 31, estimated the shortfall at $2.5 billion; Arlington-based US Airways, which emerged from bankruptcy earlier this year, put the underfunding at $600 million.
Because the PBGC is an unsecured creditor, it seldom collects more than a few pennies for every dollar owed it, a PBGC spokesman said. He declined to speculate on how much the agency might eventually collect from US Airways.