Originally Posted by FastBurner

Absolutely not. Post 2006 Pension Protection Act Requires 100% funding. American Airlines frozen pension from 2011 is not at PBGC and no one will receive a smaller amount primarily due to the 2006 Act. That is the whole point though, the union has many times offered that in a bankruptcy scenario, we would receive less than promised with an automatic transfer to PBGC. That part is not true. Fedex can declare tomorrow and the pension fund is not only solvent, but would become a standard termination. Meaning, PBGC does nothing, fund remains in force, as everyone retires, they get exactly what they are owed.

That also means all members that are under 5 years (not vested) as of the termination, would get nothing. The primary difference in liability discrepancy is that ERISA funding only requires “vested” funding. We are 100%. Fedex has voluntarily added money for past three years to maintain that funding as vesting participants are added.

Hope that helps.