Thomas L. Gallagher | Sep 03, 2009 4:45PM EDT
The US Airline Pilots Association on Sept. 2 filed a lawsuit in federal court against the Pension Benefit Guaranty Corp., the trustee of their pension plan.
The suit seeks the removal of the PBGC as trustee and requests appointment of a temporary trustee to investigate the plan’s financial affairs and to perform duties required under the Employee Retirement Income Security Act of 1974.
USAPA asserts that the PBGC breached its fiduciary duty to the fund and its beneficiaries by failing to comply with its ERISA duties.
“The PBGC has not fulfilled its obligation as trustee of our pilots’ retirement fund,” said Captain Mike Cleary, president of USAPA. “Our own investigation has uncovered a number of questionable circumstances surrounding activities and investments of our retirement fund prior to its termination.”
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.
Contact Thomas L. Gallagher at tgallagher@joc.com.
