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JLC analyzes,

For example, years ago one airline filed bankruptcy, pilots and stewardesses (not called flight attendants yet) were all union. All their pension were "restructured" because the Feds took them over. Many were lucky to get 40% of what they expected.

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And why did the Feds take them over? Because the Wall Street Bankers who arranged the Leveraged Buy-Out of the Airline used the "excess" Cash from the employee's pension fund as part of the financing for the purchase.

I'd be more worried about a for-profit company's pension fund than some of these State, Federal or Union plans. At least the Gov't plans have the full faith and credit of the taxpayers behind them -- and, to date, the courts haven't allowed states and municipalities to use bankruptcy law to skirt their obligations. Can't say the same for the private sector.

intercst
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