PBGC Files Court Brief Urging UAL Pension Contributions Monday December 13, 4:08 PM EST WASHINGTON (Dow Jones)--The Pension Benefit Guaranty Corp. says it has filed a bankruptcy court brief urging required contributions by United Airlines to its retirement plans. The PBGC on Monday said the brief, filed Dec. 10, supports a motion by the carrier's independent pension fiduciary to compel the company to make more than $800 million in contributions to pension plans. "United Airlines' pension debt is a legally binding obligation to its employees," PBGC's executive director Bradley Belt said. "Just as companies in bankruptcy must continue to pay current wages to their workers, they must also pay for the deferred wages earned by employees." UAL Corp. (UALAQ), parent of United Airlines, filed for Chapter 11 bankruptcy protection in December 2002. United failed to make required contributions to its defined-benefit pension plans on July 15, Sept. 15, and Oct. 15, 2004, and owes the plans unpaid contributions of more than $800 million, the PBGC said. The agency said its brief emphasizes that under federal pension law, unpaid pension contributions in excess of $1 million are considered tax obligations. It said pension obligations that come due after a bankruptcy filing have priority as administrative expenses. "The entire amount of United's unpaid pension contributions therefore has priority as both a tax liability and an administrative expense," the PBGC said. United Airlines sponsors four defined-benefit pension plans that cover nearly 119,000 workers and retirees. The plans are 46% funded on a termination basis, with a total shortfall of $8.3 billion, according to PBGC estimates. If all four plans terminate, the loss to the pension insurance fund is estimated at $6.4 billion, said the agency, an insurer that protects private-sector pensions. -By Jeff Bater, Dow Jones Newswires; 202-862-6616; Jeff.Bater@xxxxxxxxxxxx Roger EWROPS