Northwest Bankruptcy Underscores Larger Pension Issues

Law360, New York (March 15, 2006, 12:00 AM EST) -- As the U.S. Department of Labor begins its investigation into Northwest Airlines’ pension plans, the controversy surrounding the bankrupt carrier’s alleged “systematic shortchanging” highlights a deeper problem: how to insure pension plans remain adequately funded in the face of financial difficulties.

On Wednesday, Northwest Airlines announced that it had turned over documents, including some sensitive material, to government investigators, two months after being subpoenaed by the Labor Department.

The struggling carrier drew suspicion after filing for bankruptcy last September, only one day before a $65 million...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.