Today’s Federal Register contains the prohibited transaction exemption issued by the Department of Labor to the Northwest Airlines pension plans, permitting the in-kind contribution of Pinnacle Airlines stock to the pension plans to satisfy funding obligations. You can read more about it in yesterday’s post and in this article for the New York Times: “U.S. to Allow Northwest Air to Use Stock in Pensions.” Ellen Schultz and Susan Carey for the Wall Street Journal (subscription required) also report: “Northwest Airlines Can Use Stock Of Unit to Fund Retirement Plans.”
Bill Mann for the Motley Fool has this take on the subject: “Underfunded Pension? Just Add Stock.”