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UAL Union Asks For Pension Probe

Thu Jun 23, 2005 5:59 pm

The Aircraft Mechanics Fraternal Assc, a union representing 16000 airline ground workers at UAL, are calling on the US government to investigate possible wrongdoing in the management of UAL's pension fund. The PBGC agreed to take over the pension plans of bankrupt UAL in April as partof an estimated $6.6Billion bailout, the largest in history.

The request came in a June 20 letter to U.S. Secretary of Labor Elaine Chao and Bradley Belt, executive director of the PBGC, the government body charged with taking over insolvent private pension plans--which has never conducted a forensic audit of any of the plans it has taken over.

UAL lists Russell Investment Group as its chief pension consultant. They also make investments for UAL with other money managers.

After the S&L crisis, the RTC (Resolution Trust Corp) conducted forensic audits and barred firms found to have misbehaved from further work. With taxpayers potentially on the hook for tens of billions of dollars in busted pension plans, the unions call for such an audit maybe the first of many.(Forbes)

Well, I guess someone made the wrong decisions somewhere, or they were relying on bad advice. Maybe another "scandal" is to be unfolded!