Arlen Specter: “this amendment arises out of the bankruptcy proceedings and reorganization of US Airways. It involves the effort by US…”

“this amendment arises out of the bankruptcy proceedings and reorganization of US Airways. It involves the effort by US Airways, with the agreement of the pilots, to restructure one of its pension plans. US Airways, as is well known, was very hard hit, as was the airline industry generally, by the events of September 11. US Airways was hit much harder because Reagan National Airport was closed down. In order to pare their expenses, the employees of US Airways made enormous concessions. The pilots made concessions of some $650 million a year. In order to obtain financing to get a Federal loan guarantee, there had to be substantial modifications made. One of the proposals from US Airways was to restructure its pension plan so that instead of having a 5-year payout, it would be a 30-year payout. This was agreed to by the pilots, by the employees who are affected. And the Pension Benefit Guaranty Corporation, PBGC, made a determination that it did not have the discretion to permit a plan termination and a reinstatement of the plan with a longer payout. We had an extensive hearing in the subcommittee of the Appropriations Committee on Labor, Health and Human Services, and Education last Tuesday to inquire into this matter in some detail. It is my view that the PBGC has substantial discretion, but in order to make a clarification, I filed this amendment.”