A Bit Of Lift For Pan Am's Pensions
THE GOVERNMENT'S LARGEST-ever pension bailout has become a bit less costly. On Oct. 3, the Pension Benefit Guaranty Corp., the federal agency that insures conventional pension plans, won $115 million from the estate of bankrupt Pan Am. The funds will cover one-sixth of the $700 million bailout, with the PBGC's insurance fund picking up the rest. The benefits will go to 37,000 workers and retirees of the airline, which folded its wings in 1991. But some 2,000 pilots and 300 flight engineers won't get full pensions because Pan Am promised benefits in excess of the PBGC's insurance limits.
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