The United Airlines parent, UAL Corp., has announced to employees that it intends to ask the Internal Revenue Service for waivers so it can postpone certain payments to its employee pension plans, contributions that currently are accelerated because the plans are underfunded. The Wall Street Journal reports in this article: “UAL Will Seek IRS Permission To Postpone Pension Payments.” According to the article, a few months ago UAL estimated it must make $4.2 billion in pension contributions through 2008.
Northwest Airlines, whose three pension plans are underfunded by more than $3 billion, in April received IRS permission to postpone $454 million in payments due this year and to make the contributions over five years starting in April 2004.
RockyMountainNews.com also reports: “UAL to seek pension waivers.”