UAL Corp., Chicago, must appoint an independent fiduciary for its pension plans under an agreement reached today with the Labor Department. The parent of United Airlines will select the independent fiduciary, subject to approval by the Labor Department, to replace itself as the sole fiduciary for its pension plans. The company had disbanded the plans' administrative committee in June. On July 15, the company failed to make a required $72 million contribution and later announced it would delay paying another $400 million due by Sept. 15 until it emerges from bankruptcy.
"United Airlines' decision to stop funding its pension plans made clear the need to appoint an independent fiduciary to represent the interests of workers and retirees," said Labor Secretary Elaine L. Chao. "This agreement ensures that workers' interests are protected."