Human Toll of a Pension Default

by Dale Russakoff
The Washington Post

[This article is dated, but worth remembering as we near the eighth anniversary of 9/11. For many airline families, 9/11 was only the first shoe to drop. -- Ed.]

Ellen Saracini lost her husband, United Airlines Capt. Victor J. Saracini, when his Flight 175 crashed into the World Trade Center on Sept. 11, 2001. Now she stands to lose more than half of her widow’s pension in a very different kind of crash — United’s default of its $9 billion pension obligations.

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… United Chief Executive Officer Glenn Tilton testified to the Senate Finance Committee about $4.5 million he is receiving from United to replace benefits he had accrued over a 32-year career at Texaco, his previous employer. Tilton said that the default will not affect the payment, and that he has $1.5 million left to collect. He said this does not represent a double standard because United promised him the money in his contract.
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