Senate kills plan to help bankrupt US Airways WASHINGTON (Reuters) =97 The U.S. Senate killed a proposal late Wednesday to= =20 allow US Airways to restructure payments to its employee pension system,=20 increasing chances the bankrupt carrier will terminate its pilots'=20 retirement plan. The chamber voted to table a bipartisan amendment to a=20 spending bill offered by Arlen Specter, a Pennsylvania Republican, and=20 backed by the pilots' union and the carrier. The proposal would have=20 allowed US Airways to string out $3.1 billion in underfunded pension=20 payments over 30 years. The current schedule is seven years. David Siegel,= =20 the company's president and chief executive, said last week the carrier=20 could meet pension obligations for all of its unions except the plan=20 covering its 4,000 pilots, which is 50% underfunded. And he said the=20 airline would likely terminate that fund absent congressional intervention= =20 or a policy reversal by the quasi-government agency that oversees corporate= =20 retirement plans. The Pension Benefit Guarantee has already rejected the=20 30-year payment idea. The pilots' union said its US Airways members could=20 lose up to 75% of their current investment if their plan is terminated. The= =20 pension benefit corporation would guarantee roughly 25%. "We are deeply disappointed by the outcome of this evening's vote and the=20 failure of the Senate to see the wisdom and public benefits of a=20 restoration funding proposal to allow us to maintain our pension plans and= =20 meet our funding obligations, rather than turn the liability over to the=20 federal government," Siegel said. Siegel has said he would continue to work= =20 for a solution short of terminating the plan. And he has promised the=20 pilots that he would take steps to create a new retirement plan as part of= =20 a restructured airline if the current program is ended. US Airways is=20 facing a fast-approaching deadline to resolve its pension problems one way= =20 or another. The company must present its creditors with a reorganization=20 plan by the end of the month that clears up questions about the underfunded= =20 liability. Resolving this issue is also necessary to receive a $900 million= =20 federal loan guarantee. Several Senate lawmakers said they opposed=20 Specter's proposal because it would not have helped the industry, including= =20 bankrupt United Airlines or other carriers with underfunded pensions. "The= =20 airlines are in bad shape," said Sen. John McCain, chairman of the Commerce= =20 Committee and an Arizona Republican. "This needs to be viewed in the=20 context of the entire industry." McCain said he would be willing to take up= =20 the matter at a later date. But proponents argued US Airways merited an=20 exception immediately because it is fighting for its survival in bankruptcy= =20 court. Officials from the Air Line Pilots Association could not be reached= =20 for comment. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@escape.ca Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: www.pichemas.com TnT Webdirectory: http://search.co.tt *********************************************************