Originally Posted by
sailingfun
1. PBGC
2. PBGC
3. I suspect the plan would have remained frozen and the company would have funded the plan going forward as they are with the NWA pilot plan and the other 70,000 employees at Delta. The pilots would not have received the 650 million dollar note in that case and their would have been no cash distribution of the MPP plan. In addition the stock received by the pilots and sold in a claim sale may have been reduced. The PBGC would also not have received the windfall they got in Delta stock.
Thanks for the discussion.
1. Correct.
"PBGC is not funded by general tax revenues. PBGC collects insurance premiums from employers that sponsor insured pension plans, earns money from investments and receives funds from pension plans it takes over."
2. Incorrect. If you send an email to them, their email address ends with @pbgc.gov. They were affected by sequestration.
"Pay: Most PBGC employees are paid according to the General Schedule (GS) Classification and Pay System."
3. Probably true, so if that happened, what would the company's balance sheet look like today?
Would they be able to buy new aircraft with that additional amount of debt load?
Or, the other (much worse) option, was they could not have carried that debt, no one loaned them the money, and they liquidated, like Eastern, Pan Am, TWA, or so many others in the history books.