The PBGC today warned UAL Corp., Chicago, parent of United Airlines, that it will ask tough questions at a July 29 meeting of airline pension and federal officials about how it will make up the growing shortfall in its pension plans. "The company owes more than $500 million in additional contributions this year and more than $4 billion over the course of the next five years," PBGC Executive Director Brad D. Belt wrote in a letter today to Glenn F. Tilton, UAL chairman and president. The agency wants a detailed business plan covering how the airline intends to come up with the money or its plans for terminating the pension plans.
The $6.96 billion pension plan, which had $12.65 in liabilities as of Dec. 31, announced last week that it will defer $563 million in contributions owed this year until it emerges from bankruptcy.
