[jethkl]

> Are they financially screwed

I’ll share an anecdote I witnessed in my extended family–it was horrible. When US Air went bankrupt, employees with decades of service, expecting high five-figure to low six-figure annual income, learned they would get roughly $0.20 on the dollar. For many who were entering retirement, the impact was life-changing, and the stress and disruption it caused could well be argued as life-shortening.

PBGC did take over, but that did not solve the problem.

I believe the root cause was mismanagement of the pension, with the bankruptcy merely exposing this. But I wouldn’t be surprised if, at every opportunity during the bankruptcy process, changes were made that eroded the program’s health.

https://www.thestreet.com/investing/stocks/us-airways-pilots...