The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Largest pension default in US corporate history

United Airlines, the embattled air transport operator, looks set to spark the biggest pension default in US corporate history as it approaches bankruptcy proceedings. And with investors in US Airways and Delta Airlines also eyeing Chapter 11 proceedings, it seems the worst may be yet to come for employees at US airlines. United's pension fund obligations amount to $6.4 billion and would add to the $9.4 billion deficit already assumed by the Pension Benefit Guarantee Organisation (PBGO), the federal agency that insures US corporate pension plans.

The story is symptomatic of increasing pressures on corporates to effectively deal with their widening funding gaps. Up to 81% of US corporate benefit plans are underfunded.

For more on corporate pension issues see CFs October issue on the effects of the EU pensions directive on UK corporates, and look out for CFs November focus on ?Funding the Pension Shortfall.'

Please email your thoughts or comments on the issue of corporate pensions to: ethornton@euromoneyplc.com

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree