Pension under-funding means rough weather ahead:Consistent with the weakened condition of the industry, airline industry pensions are currently underfunded by over $25 billion. Moreover, the strength of the industry's many single-employer plans rests directly on the ability of sponsoring employers to fulfill their obligations.
By law, companies that fall below legal funding levels - currently 80 percent - are required to make "deficit reduction contributions." However, some of these companies have been lobbying Congress to have these contributions deferred.
With all the problems in the airline industry, you should check the status of your pension plans regularly. If you aren't up-to-date on how your pension is doing, our easy-to-understand FAQs section can help you understand your pension plan and get more information so you can keep up.
