Northwest Threatens to Void Pensions

Law360, New York (June 7, 2006, 12:00 AM EDT) -- In a move with ominous portent for the Pension Benefit Guaranty Corp., Northwest Airlines is threatening to void its employees’ pensions if Congress doesn’t intervene and pass a pension reform bill with provisions giving airlines more time to fund their retirement plans.

Northwest needs Congress to pass legislation if it is going to make good on pension benefits for 70,000 employees, wrote Northwest CEO Douglas M. Steenland in a letter to House Majority Leader John Boehner.

The bill at issue has already been approved by the...
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