Friday, September 4, 2009
The US Airline Pilots Association (USAPA) has filed a lawsuit against the Pension Benefit Guaranty Corporation (PBGC) seeking the removal of the PBGC as trustee of US Airways pilots’ pension plan.
The lawsuit also requests the immediate appointment of a temporary trustee to perform the investigatory functions - a role it alleges the PBGC has refused to perform on behalf of pension plan beneficiaries since 2003.
USAPA president captain Mike Cleary said: "The PBGC has not fulfilled its obligation as trustee of our pilots' retirement fund. Our own investigation has uncovered a number of questionable circumstances surrounding activities and investments of our retirement fund prior to its termination.
"Our request to the PBGC for a thorough investigation has fallen on deaf ears, so we are asking the court to appoint a trustee who will do its due diligence in this matter and investigate the management, or perhaps the mismanagement, of our pilots' retirement fund." . . . .
The PBGC assumed control of the pilots' pension on March 31, 2003, when US Airways terminated the plan during its bankruptcy proceedings over the objections of the pilots.
The suit will be in the nature of a breach of fiduciary duty under ERISA by the USAPA, which represents more than 5,000 US Airways pilots.