Originally Posted by
pinseeker
It depends on the type of bankruptcy that is being filed for. Also, bankruptcy doesn't always shed liabilities, it can also restructure those liabilities to make it easier for the company to handle them. And some bankruptcies determine the order in which investors/creditors get paid in case of total failure.
I suggest you do your own research rather than relying on anonymous posters to give you information.
As of right now, our DB plan is fully funded.
Currently, FedEx is not in danger of bankruptcy in the near future.
My line of questioning is to elicit information from the two of you so as to determine the fidelity of what you write, not to rely on it.
What I’m trying to to determine is if you think there any scenario in which a company can file bankruptcy in order to shed liabilities, including pensions. I’m not saying that FedEx is currently underfunding the pension or whether it’s currently in danger of filing for bankruptcy protection.
The claim some here are making is that the union said the pension is underfunded. I don’t think they have said that. The other claim is that the pension, as currently funded, could not be taken over by the PBGC, or if it’s frozen, either scenario, that the payout would not be lowered, at least for a certain percentage of the vested pilots.
In other words, in order to say that the union is lying is to show that what they say cannot happen, lower pension payments in a bankruptcy regardless of current funding. And even then, I don’t think they are putting a value on the likelihood that that will happen in the next 25 years, only that it is a possible threat. And I also feel they are trying to make a cumulative case in which they outline the different types of threats. And they seem to do it for both sides of the coin so as to let each pilot put their own value judgement on these possible threats as a whole.