WEBSITE UPDATE 12/31/04

The Pension Benefit Guarantee Corporation filed a motion on Thursday, December 30th in the Federal District Court in Chicago requesting an involuntary termination of the pilot pension plan. Specifically the PBGC asked the court to order four things:
  1. Termination of the United Air Lines Pilot Defined Benefit Pension Plan
  2. Appointment the PBGC as trustee for the plan
  3. Establish December 30, 2004 as the effective date of termination.
  4. Require United to deliver all plan assets and documents to the PBGC.

THIS MOTION BY THE PBGC DOES NOT TERMINATE THE PLAN! The plan can only be terminated by a determination of the court. URPBPA, among others, plans to vigorously oppose this motion. Note that this action takes place in Federal District Court and not in the Federal Bankruptcy court of Judge Wedoff.

Pending action by the District Court in favor of the PBGC’s motion, United is legally obligated to continue making pension payments. When contacted today, a United representative stated that pension payments would continue normally.

As we noted in our letter of August 31, 2004, even if the PBGC is successful in its attempt to terminate the pilot pension plan, URPBPA will continue to work on behalf of its members to insure that each member receives the appropriate payments from the PBGC. In both the Pan Am and U.S. Air terminations, it required significant organized efforts to insure that each retiree was receiving the maximum payment from the PBGC allowed by law.

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WEBSITE UPDATE 12-30-04

Today, December 30, 2004, the Pension Benefit Guarantee Corporation (PBGC) filed a motion in federal District Court in Chicago seeking the immediate termination of the United Airlines pilots' Defined Benefit Pension Plan. Today's action by the PBGC affects only the pilots Defined Benefit Plan. The filing by the PBGC seeks the termination of the pilots plan effective December 30, 2004. The United Retired Pilots Benefit Protection Association will be opposing all efforts to terminate the pilots Defined Benefit Pension Plan.

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WEBSITE UPDATE 12-24-04

On December 22, 2004, the United Retired Pilots Benefit Protection Association (URPBPA) filed a notice of appeal to the United States District Court for the Northern District of Illinois from the order denying URPBPA and certain individual retired pilots' Motion to Appoint a Section 1113 Authorized Representative to defend United Air Lines retired pilots rights to receive vested pension benefits under the pilots' tax-qualified and non tax-qualified defined benefit pension plans and to defend the retired pilots' interests in connection with the Debtor's Motion For Authority to Reject Their Collective Bargaining Agreement Pursuant to Section 1113(c), which order was entered by Judge Eugene R. Wedoff on December 14, 2004.

The Debtors are attempting to modify the pension related benefits that have been earned by United's pilots by terminating the Pilots Defined Benefit Pension Plan. United has recognized that it will need to go through a two-step process. In step one, United will need to satisfy the requirements of Section 1113 and remove any requirement from its collective bargaining agreement that prohibits United from terminating the pilots' pension plan. In step two, United will need to satisfy ERISA's distress termination provisions.

ALPA has made it clear that they do not represent retired pilots, (and as a result ALPA cannot bargain regarding the rights of retirees to receive retirement benefits) and United has not made a proposal to or attempted to negotiate with an authorized representative for United's retired pilots. United is seeking to unilaterally terminate vested retiree benefits. United cannot satisfy the requirements of Section 1113 if an authorized representative is not appointed to represent United's retired pilots. URPBPA filed a motion seeking the appointment of an authorized representative so that United's retired pilots' will have the right to bargain with United with respect to United's attempts to take actions that affect their rights to receive pension benefits.

URPBPA seeks the following relief: (1) that the bankruptcy court's December 14, 2004 order denying URPBPA's motion be reversed, (2) that URPBPA's motion to appoint a Section 1113 authorized representative be granted, (3) that the court order that United commence a Section 1113 bargaining process with an authorized representative of retired pilots, (4) that any agreement which impacts retired pilots reached in the meantime between United and ALPA be declared null and void, and (5) such further relief that this court deems just and proper to ensure that United complies with the requirements of Section 1113 with respect to the rights of retired pilots.

Appeal processes such as these usually take between thirty and sixty days before the appeals court issues a ruling.

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WEBSITE UPDATE 12-18-04

On December 17, 2004, the United Retired Pilots Benefit Protection Association (URPBPA) participated in the monthly UAL bankruptcy omnibus hearing. The issue URPBPA had before the Court was an item deferred from the December 14, 2004 court hearing when URPBPA requested the Court to order United to provide certain documents in the discovery process. URPBPA had requested a copy of the Bridge report which is an evaluation of United's latest business plan. It was created as part of the settlement between United, the AFA, and the IAM of the unions' request to have a Trustee appointed to run United Airlines during the remainder of the bankruptcy process. In filings made prior to the December 17 hearing, United, the AFA, and the IAM asserted that the Bridge report and Bridge's experts would not be used in any manner in the 1113 hearings. There is a provision in bankruptcy law that protects from discovery studies that will not be used at trial. Therefore the Judge said he had no option under the law but to deny URPBPA's request to receive the Bridge report.

URPBPA has received copies of United's latest business plan, and the pilots’ Defined Benefit Plan actuarial data under a confidentiality agreement URPBPA has signed with United. The experts URPBPA has retained to assist in the defense of the pilots’ Defined Benefit Pension Plan are analyzing these documents.

The other item of interest to URPBPA at the hearing was a request to the Court by United to schedule a hearing for the Court to approve the recent settlement between United and the UAL-MEC. The Judge set the hearing for January 6, 2005.

The tentative agreement was approved by the UAL-MEC on December 16, subject to ratification by the UAL ALPA membership. Part of the tentative agreement removes the requirement for United to maintain a Defined Benefit Pension Plan for United's pilots. The agreement also states that the UAL-MEC will not object to United's plan to terminate the pilots' Defined Benefit Pension Plan.

The UAL-MEC has surrendered the rights of United pilots to have a Defined Benefit Pension Plan. If, with the MEC's assistance, the pilots' Defined Benefit Plan is terminated, it will result in a significant loss of pension income for many of United's current pilot retirees. The tentative agreement provides several means of replacing a portion of the lost pension by active pilots due to the plan termination. However, United's current pilot retirees will have only the protections provided by ERISA and the Pension Benefit Guarantee Corporation. This represents a significant shift of pension income from current United pilot retirees to future pilot retirees. URPBPA and others will be filing vigorous objections to the United/UAL-MEC tentative agreement prior to the January 6, 2005, hearing.

A copy of the complete United/UAL-MEC tentative agreement can be viewed by clicking on the link below.

    ALPA Tentative Agreement

Termination of United's Defined Benefit Plan is a two-step process. The first step is the removal of the requirement for United to maintain a Defined Benefit Plan from the pilots' labor agreement. This is what the MEC has tentatively agreed to do. The second step is a termination hearing. The tentative agreement states that United will not seek to terminate the pilots' Defined Benefit Plan prior to May 2005 or ten days prior to the date for exiting bankruptcy, whichever comes first. United must give notice to plan participants of any proposed plan termination at least sixty days prior to the proposed termination date. During this sixty-day period, the Bankruptcy Court will conduct a termination hearing. URPBPA, the PBGC, the Department of Labor, and possibly others will be participating in any termination hearing.

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WEBSITE UPDATE 12-15-04

On Tuesday, December 14, a hearing was held in Judge Wedoff's court on the motions filed by the United Retired Pilots Benefit Protection Association (URPBPA) seeking "To Appoint A Section 1113 Authorized Representative For United's Retired Pilot's In Conjunction With Debtors Motion For Authority To Reject Their Collective Bargaining Agreements" and " A Motion To Compel Discovery From Debtors."

Judge Wedoff denied URPBPA's motion to participate in the Section 1113 negotiations. Despite the fact that URPBPA's 3089 members have authorized URPBPA to act as a Committee for the retired pilot members of URPBPA, the Judge said he would not appoint URPBPA or any other group to participate in negotiations with the Company. He said that, under the law, only the unions and the Company can negotiate in an 1113 proceedings. URPBPA's attorneys argued that ALPA is not representing the retirees and that retired pilots have vital interests at stake, that no one will be representing those interests, and that URPBPA should be allowed to represent the retired pilots' interests. Judge Wedoff said he disagreed and that his reading of the law did not allow URPBPA to be involved. Judge Wedoff said it is apparent that he and URPBPA's attorneys have differing views of this matter and that the only recourse is to have somebody else above him review his decision. He said that if there is a contested hearing over the pension matters under 1113, URPBPA can participate in the hearing.

Judge Wedoff was informed that URPBPA and United have reached agreement on a confidentiality agreement, but United still has not provided any of the information URPBPA has requested. The Judge asked the Company when they would make the information available. The United attorneys said some of it would be given to URPBPA almost immediately and that they would provide the Company's business plan and the Defined Benefit Plan actuarial data. United did not want to provide any information related to their negotiations with ALPA nor the Bridge report. The Bridge report is a study done by an outside business consulting firm that was employed to complete an independent review of United's business plan. Judge Wedoff ruled that we cannot have access to the information about the ALPA/Company negotiations.

The Judge questioned why the Bridge report could not be made available and was told it's because of a confidentiality agreement between United, the AFA, and IAM. He said his reading of the law did not provide for a confidentiality agreement to override discovery. Points of this matter were argued and he delayed making a decision until the scheduled omnibus hearing on Friday, December 17. Both the IAM and AFA attorneys argued against releasing the Bridge report.

At the conclusion of the hearing, the Company attorneys told the Court that United has reached an agreement with ALPA on the Section 1113 proceedings. There were no details given nor a date set for the release of any information.

Judge Wedoff did comment that URPBPA will be allowed to participate in any Defined Benefit Plan distress termination proceedings. A distress termination hearing is required before the Company will be allowed to terminate the pilots' Defined Benefit Plan. URPBPA will continue to monitor the Section 1113 process and regardless of whether there is a trial to resolve the Section 1113 matters between ALPA and United, URPBPA will be fully prepared to participate in a distress termination hearing should there be one prior to United's emerging from bankruptcy.

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WEBSITE UPDATE 12-13-04

On December 10, 2004, the United Retired Pilots Benefit Protection Association filed a motion with the Bankruptcy Court seeking "To Appoint A Section 1113 Authorized Representative For United's Retired Pilot's In Conjunction With Debtors Motion For Authority To Reject Their Collective Bargaining Agreements" and " A motion To Compel Discovery From Debtors."

Copies of these filings may be seen by clicking on the appropriate link below.
    URPBPA Emergency Motion to Compel Discovery
    URPBPA Emergency Motion to Appoint Section 1113 Authorized Representative

URPBPA Motion to Compel Discovery URPBPA Motion on Section 1113

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WEBSITE UPDATE 11-30-2004

As requested by the bankruptcy court, the United Retired Pilots Benefit Protection Association attorneys have filed additional documents to describe the authorizations URPBPA has received from its members requesting that URPBPA represent their interests in the upcoming UAL bankruptcy proceedings involving our Defined Benefit Pension Plan. URPBPA believes that it is sufficiently authorized to represent the interests of our the members in the bankruptcy case, and that this will allow URPBPA to pursue immediately the relief we all want -- that the pensions and other retirement benefits available to all retired pilots, surviving spouses and dependents not be terminated. The filing will allow URPBPA to immediately request documents and information which will allow URPBPA's experts to begin to analyze United's request to terminate our Defined Benefit Pension Plan. URPBPA will be representing the interests of all of it's members in these proceedings. If any additional authorizations are required by the Bankruptcy Court from our membership, we will be in contact with you.

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WEBSITE UPDATE 11-20-2004

The monthly omnibus hearing on the UAL bankruptcy was held in Judge Wedoff's court on November 19, 2004. During the hearing, United attempted to get Judge Wedoff to agree to let them resolve all of the Section 1113 issues, including ending the contractual requirement to maintain Defined Benefit Pension Plans, with the unions. United would then have had the Court address the distress termination issue after the Section 1113 proceedings were concluded. This sequence would have excluded URPBPA and the PBGC from the proceedings until the central issue in the case, the “necessity” of termination, had already been decided. This was in keeping with the thrust of United's filings leading up to the hearing.

Judge Wedoff responded that he was concerned that if he approved proceeding in the manner the Company was requesting, the defined benefit pension issues would have been decided in the Section 1113 process and the distress termination hearing would be a mere formality. The Judge was concerned by this approach. He commented that there is an overlap in the Section 1113 proceedings and the distress termination motions and they should not be handled as completely separate matters. He said that the parties of interest, and he specifically mentioned the Pension Benefit Guarantee Corporation, the United Retired Pilots Benefit Protection Association, and retired pilots, were entitled to information concerning pension termination matters. (See URPBPA’s court filings in the documents section of this website.)

Judge Wedoff raised the issue of URPBPA meeting the requirements of Rule 2019. This is a rule requiring URPBPA to demonstrate to the Court and UAL that the members of URPBPA desire to have URPBPA represent their interests in pension termination matters. Judge Wedoff said that if URPBPA makes the appropriate Rule 2019 filings, we would be allowed to participate on behalf of the retired pilots. URPBPA has agreed to file the required forms with the Court in an expeditious manner

The Judge’s rulings were not what the Company wanted, but they agreed that, subject to resolving confidentiality matters, this is how we will proceed. The attorney's representing ALPA and IAM stated that they did not object to these procedures.

Representatives of the PBGC were present and participated in the proceedings.

The Judge set January 10 to 14 as the dates for the Section 1113 and distress termination hearings, if they are necessary.

URPBPA was the only objector to the Company's request for a longer extension of their period of exclusivity and the Judge approved the Company's request.

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WEBSITE UPDATE 11-13-2004

On November 12, 2004, the United Retired Pilots Benefit Protection Association filed a motion requesting that Judge Wedoff order United to include URPBPA in any discussions regarding termination of United's Pilot Defined Benefit Pension Plan. The motion further requested that United be ordered to provided URPBPA the same information it has provide to its unions, the PBGC, the Department of Labor, the unsecured creditors committee, Independent Fiduciary Services, and its other key stakeholders to allow URPBPA to adequately evaluate United's claims that it must terminate the Pilots Defined Benefit Plans.

Additionally, URPBPA filed a motion objecting to United's request to extend their period of exclusivity until January 31, 2005. This motion asks that United's request for an extension of their period of exclusivity be denied and that exclusivity be terminated immediately.

Copies of both of these motions are available in the Document drop down window or at the following links:
Motion regarding the publication of documents
Objection to United's request for an extension of exclusivity

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WEBSITE UPDATE 11-5-2004

UAL filed the following motion in Bankruptcy Court on November 5, 2004. The motion asks the Court to establish a schedule for rejection of the Company's collectiving bargaining agreements including any requirement for the Company to maintain its Defined Benefit Pension Plans. United wishes to conclude these proceedings by mid January, 2005.

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WEBSITE UPDATE 11-5-2004

The UAL-MEC (ALPA) announced late yesterday (11/04) they had received a letter from United proposing additional changes to the pilot’s contract under Section 1113 of the bankruptcy code. The Company asserts that these changes are necessary for United to be able to emerge from bankruptcy. The MEC announcement stated, "The changes are dramatic and include, as we have previously reported, a proposal for termination and replacement of the pilots' defined benefit pension plan." The MEC announcement said they would not be releasing any further details of the Company proposal until it has been reviewed by the MEC at a special meeting scheduled for November 15.

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WEBSITE UPDATE 11-5-2004

URPBPA members have been questioning why the cost of our medical insurance is higher as of January 1, 2005, than the package that went into effect on October 1, 2004.

For pre-Medicare retirees, the reason the costs are higher is due to the contract signed in 1991. A provision of that Agreement provided that once pre-Medicare retiree medical costs increased to 5% above the 1990 baseline, then pre-Medicare retirees would have to pay a monthly charge, based on the pre-Medicare retiree and active pilot population costs to UAL. This cost sharing began on January 1, 2004. The 2005 charges reflect 2004 experience.

For post-Medicare retirees, cost sharing has been in place for a longer time. Under an agreement reached in the 1990’s, medical insurance charges will be increased each year by 10% until the retiree is paying 50% of United's cost to provide this post-Medicare retiree benefit.

Under the provisions of the Agreements, these "costs", along with the costs for the active pilots, are reviewed by the UAL-MEC R&I Committee and the Committee’s experts prior to United’s imposition of the new charges.

The Section 1114 negotiations in the early part of this year did not change the agreements that provided for this cost sharing. The Section 1114 negotiations with United resulted in an additional surcharge that is added to the previously negotiated charges. Thus our medical insurance costs will increase yearly for the next few years, but they will remain far below what United proposed prior to the Section 1114 negotiations.

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WEBSITE UPDATE 10-30-2004

URPBPA has been receiving questions from our members about the conditions for a company's termination of their Defined Benefit Pension Plans.

The Pension Benefit Guarantee Corporation and IRS regulations govern what a corporation may do as far as terminating a Defined Benefit Plan and then replacing it with another plan.

If a Defined Benefit Plan is terminated it is unlawful for the corporation to replace it with another Defined Benefit Plan. Should a company desire, or the unions demand that a terminated pension plan be replaced, the replacement plan would have to be a Defined Contribution Plan (Pilot’s Directed Account Plan or “B-Fund)). A Defined Contribution Plan is a future service plan. Contributions are normally made by the company as a percentage of the employee’s wages. Thus, former employees who have already retired cannot realize any benefit from a replacement plan as they are not active employees and do not receive wages from the corporation.

Retirees, like active employees, have benefits taken away from them when a Defined Benefit Plan is terminated, but only active employees can recoup any of their lost pensions from a replacement plan.

Click here for additional new Questions and answers

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WEBSITE UPDATE 10-05-2004

As previously reported, on September 24, UAL Inc. filed an informational brief concerning the state of its Defined Benefit Pension Plans. Judge Wedoff disallowed the filing but it has become a public document, if not a part of UAL's bankruptcy court record.

The attempted filing makes statements regarding the impact of pension plan termination on the various employee groups. However, the Company does not supply any data that can be used to validate their numbers. They present them as being factual, but state that the numbers are subject to revision as the Company's analysis of the plans continues. From the data and information presented in the Company filing, it is not possible to determine if their statements concerning the impact of plan termination on pilots includes termination of the nonqualified benefits for those retired pilots who have nonqualified benefits or those who will have them when they retire. The rejected filing does not provide sufficient information to allow a retired pilot to determine the financial impact of plan termination on their Defined Benefit Plan income.

For the reasons stated above, we are not posting the data included in the company’s rejected filing. The Company made it very clear in their rejected filing that they believe the Defined Benefit Plans must be terminated in order for the Company to be able to secure the financing necessary to emerge from bankruptcy.

Throughout the filing the Company talks about communicating with and working with all stakeholders to develop an optimal solution to their pension dilemma. The filing is sprinkled with statements like: "a final decision... reached in close consultation with all of United's stakeholders." and "...a full and thoughtful exploration with its stakeholders of every possible alternative."

The Company has consistently refused to provide the United Retired Pilots Benefit Protection Association (URPBPA) with any information about the bankruptcy and its effects on retiree medical benefits or what they are intending as far as our Defined Benefit Pension Plan. The Company has made no effort to contact URPBPA since they publicly announced, "It is highly likely that United will have to terminate their Defined Benefit Plans." This raises serious questions as to the veracity of the Company's statements about their desire to work with all stakeholders in seeking a solution!

URPBPA strongly recommends that no pilot retiree make any decisions on their economic future based upon incomplete and unverified information the Company may supply.

UPRBPA plans to fight any effort by the Company to terminate our Defined Benefit Plan. The UAL-MEC has also issued a statement declaring that they will not accept termination of their Defined Benefit Plan.

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WEBSITE UPDATE 09-29-2004

On Friday, September 24, 2004, a hearing was held in Judge Wedoff's court on the IAM and AFA motions to appoint a Trustee to operate United during the balance of the bankruptcy proceedings. Judge Wedoff set October 27 for a hearing on the Trustee motion. He said he did not want to have to rule on such a motion and he wanted the parties to work to reach an agreeable settlement of the matter. He urged the unions and the Company to start to work cooperatively.

UAL filed a 107 page informational brief on the state of its Defined Benefit Pension Plans. AFA, IAM, and the PBGC filed briefs objecting to United's filing. Judge Wedoff said United's filing was inappropriate and that he had not read it, would not read it, and ordered it struck from the record.

Mark Bathurst, UAL-MEC Chairman, issued a strong statement objecting United's plan to terminate its pension plans and he said "Both the Company and the capital markets should understand that the pilots of United will not accept this result under any circumstances."


Mark Bathurst, Chairman of he UAL-MEC released the statement below after the omnibus hearing:

Statement by the United Chapter of the
Air Line Pilots Association
Regarding Today’s United Airlines
Bankruptcy Court Hearing

September 17, 2004

"In Bankruptcy Court today, we supported a 30-day extension for the Company to propose a workable restructuring plan for United. We expect the Company to take advantage of this grace period to address in a sincere and productive manner the serious issues confronting the pilots.

"At the same time, it must be said that the United pilots are growing increasingly concerned that the Company's current management team may not be able to craft a bankruptcy exit that preserves a strong, profitable enterprise. We will need the answer to this question during the next several weeks or we will be compelled to explore other solutions."

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WEBSITE UPDATE 09-20-2004

Judge Wedoff held the monthly omnibus hearing on United bankruptcy matters on September 17. He extended United's period of exclusivity for another thirty days. The Judge also set September 24 as the date for a hearing on the IAM's motion to have the Court appoint a Trustee to run United Airlines during the remainder of the bankruptcy proceedings.

United has reached an agreement with Independent Fiduciaries to replace United Airlines as the fiduciary of United's Defined Benefit Plans. During the omnibus hearing, the Judge stated that it was not necessary for him to approve the appointment of Independent Fiduciaries Services Inc. to serve as the fiduciary of United's Defined Benefit Pension Plans as this was something United could do in the regular course of business even during the bankruptcy process. The agreement between United and Independent Fiduciaries has already been approved by the Department of Labor. The DOL has the responsibility of insuring that companies’ defined benefit plans comply with the requirements of ERISA

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WEBSITE UPDATE 09-15-2004

The next omnibus hearing in the United bankruptcy proceedings will be held by Judge Wedoff on September 17. The IAM has delayed seeking Judge Wedoff's decision on their request to have a Trustee appointed to manage United during the bankruptcy until the next omnibus hearing in October.

US Air has filed for bankruptcy for the second time. Simultaneously they announced they would not be making a required $110 million payment to their Defined Benefit Pension Plans that is due on September 15. This is the same date that United is due to make additional payments to their plans and they also have said they will not be making those payments. US Air is pressing its employees for an additional $800 million in cuts to wages and benefits. Various analysts are now openly discussing the possible liquidation of US Air in light of these recent events.

Delta management has been in discussion with their pilots for over a year. They are seeking $1 billion in cost reductions. The cuts would include reductions in pay, changes to work rules, and benefit modifications including terminating the pilot’s pension plan and replacing it with a reduced plan.

Additionally, managements at Northwest and Continental have been having sporadic negotiations with their pilots about wage and benefit cuts.

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WEBSITE UPDATE 08-25-2004

The monthly omnibus hearing on United bankruptcy issues was held in Judge Wedoff's Court on August 20, 2004

The following were the results of the matters that Judge Wedoff considered;

United amended their request for a four months extension of their period of exclusivity to a one month extension. Judge Wedoff granted United another thirty day extension of their exclusive right to submit a plan of reorganization to the Court. ALPA did not object to the 30 day extension. Judge Wedoff expressed his concern over United's not having discussions with the unions about their plans for the Defined Benefit Plans going forward.

United admitted in Court that their revised Debtor In Possession financing agreements, which were before the Judge for approval, did not preclude them from funding their Defined Benefit Plans. United had made numerous references that their new DIP financing agreements would not allow them to provide the legally required funding to these plans. United said they made the decision to not fund the Plans because it was a prudent and sound business decision to do so. Judge Wedoff said that since the DIP financing agreements did not preclude United from financing the Plans and that was the focus of the Pension Benefit Guarantee Corporation's motion, the PBGC objection to the DIP financing agreements was not a valid issue. He said that if the PBGC wanted to file another motion objecting to the Company not complying with the funding provisions of ERISA they could do so, and he would consider it at that time. There was no indication from the PBGC as to what they might do or from the Judge as to how he might rule if that happened.

The Judge did enjoin the IAM from pursuing their two lawsuits against Mr. Tilton, Mr. Brace, and Mr. McDonald. He said that if the IAM wants to continue with their legal action against these Corporate Officers for violating their fiduciary duty as Trustee's of the pension plans, it should be done in Bankruptcy Court. There was no indication from the IAM as to their next move as far as these lawsuits are concerned.

The IAM motion for the appointment of a Trustee to run United during the course of the bankruptcy proceeding will be heard at the September omnibus hearing.

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WEBSITE UPDATE 08-16-2004

The next omnibus hearing on United bankruptcy issues will be held in Judge Wedoff's Court on August 20, 2004

At that hearing the following motions and objections will be presented. The IAM has filed motions objecting to United's proposed Debtor In Possession financing arrangement which prohibit United from funding any of United's defined benefit plans while they continue in bankruptcy. The IAM argues that provisions such as these are in violation of the requirements of ERISA. The IAM has also filed a motion objecting to the lengthy extension of United's period of exclusivity for presenting a plan to emerge from bankruptcy. The IAM is also requesting that the Judge appoint a Trustee to replace United's management during the course of the bankruptcy proceedings.

The AFA has filed a motions objecting to United's DIP financing agreements and their request for the lengthy extension of their period of exclusivity.

The Department of Labor (DOL) has requested to be involved as a party at interest in the United bankruptcy proceedings.

The Pension Benefit Guarantee Corporation (PBGC) has filed a motion objecting to the clause in United's DIP financing agreement that bars contributions to United's pension plans. Their arguments are consistent with the IAM filing.

The UAL-MEC has filed a motion objecting to United's request for a lengthy extension of their period of exclusivity.

URPBPA has filed a motion supporting the UAL-MEC filing.

The IAM will be opposing United's requests for injunctions to stop the IAM lawsuits against Mr., Tilton, Mr. Brace, and Mr. McDonald for failing to properly fulfill their duties as Trustee's of United's defined benefit pension plans.

We will update our website after the hearing on August 20, 2004

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WEBSITE UPDATE 07-29-2004

Rick Dubinsky has resigned as a Director of the United Retired Pilots Benefit Protection Association. Rick has been an integral part of URPBPA since the planning to create the organization began in late 2002. Rick's efforts have helped to develop URPBPA to where it was able to successfully petition the Bankruptcy Court to provide for a separate Committee to represent retired pilots in the Section 1114 proceedings. That effort led to the negotiation of a revised medical insurance plan for retired United pilots and their dependents rather than the drastic increases in costs to be borne by retirees that United had proposed. URPBPA is also well positioned to defend the retired pilots retirement benefits, if necessary.

The Board wishes to thank Rick for his contributions toward the development of URPBPA and its defense of the retired United pilots benefits.

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WEBSITE UPDATE 07-20-2004

United Airlines announced last week that the company is deferring the decision to make a required payment to its "Defined Benefit Pension" plans. The payment of $72.4 million was due to be made by July 15, 2004. Each of United's four "Defined Benefit Plans" (IAM, AFA, Salaried & Management, and the Pilots) has different funding requirements due to the fact that the under funding levels and funding credits for past contributions and values are different for each of these plans. United has sufficient funding credits for the Pilots' plan and a cash payment was not required for that plan at this time. However, the payment was required for the other three plans.

In a statement released by United, the company said the decision to not make the payment was made to conserve needed cash resources and that the lack of making the required payment to the other plans would not affect pension payments to United's current retirees under those plans.

United made the required payment to it's pension plans earlier this year but the company now has a massive payment of approximately $400 to $500 million due September 15, 2004. None of that amount is owed to the pilots' plan on September 15th. Any failure of United to make the required contributions to the other pension plans on September 15th would raise a much more serious concern about the survival of all of United’s "Defined Benefit Plans." Additionally, due to IRS regulations there is potential for severe economic penalties to the company for having failed to make the July 15th payment to the other plans on time.

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WEBSITE UPDATE 07-13-2004

Bankruptcy court Judge Wedoff approved the modification to the retirees' medical insurance plans on June 14. The Retired Pilots Section 1114 Committee was planning to send a mailing to all United pilot retirees and their dependents that would describe the new plan and provide an explanation of the process that led to its approval.

URPBPA played a major role in insuring that the retired pilots were well represented in the Section 1114 proceedings before Judge Wedoff. That representation led to the negotiated conclusion of a revised retiree medical plan that was substantially better than the company's proposal. The revised plan, while slightly more expensive than our current plan, still provides good medical coverage for past retirees at reasonable costs.

The Committee wanted to compare the package they were planning to mail to the enrollment package the company was going to be sending to insure that there were no conflicts between the two documents. After the Airline Transportation Stabilization Board (ATSB) denied UAL's application for loan guarantees on June 17, the company has not been willing to provide any information to the Committee about their mailing, the proposed implementation date of the new plan, or any details of how the company now expects to emerge from bankruptcy.

Because the company is not providing any information to the retirees, the Retired Pilots Section 1114 Committee has elected to mail their package. The first of the packages will be mailed on July 19.

The ATSB's rejection of UAL's request means that UAL will probably revise their plans to emerge from bankruptcy. Since the company is unwilling to discuss any aspects of their intentions, we cannot know what approach management will take or when they will announce their new business plan. However, there is rampant speculation in the business and financial press that the one probable target for improving the company's opportunity to emerge from bankruptcy is to terminate the company's under funded pension plans to avoid having to make large payments to these plans in the future.

URPBPA's board of directors and our attorneys and benefits experts have been monitoring the pension issue closely and, up to this point in time, had some confidence in Mr. Tilton's positive statements that the company would emerge from bankruptcy with the pension plans intact. The ATSB's rejection changes the situation and our organization must now begin to give serious consideration to the views of the financial analysts and media concerning the vulnerability of the company's pension plans. This means we are going to have redouble our efforts to influence the ultimate outcome of UAL's bankruptcy in a way that is as beneficial to the company's retired pilots as possible.

There are several scenarios that might unfold over the next few weeks. It is impossible for anyone to know exactly what actions will need to be undertaken on your behalf until the situation becomes much clearer. We do know the company will have to reopen Section 1113 proceedings if they elect to try and terminate our pension plan on a distress basis. If so, ALPA and the other unions will be involved because such a termination includes all employees covered by a pension plan, be they active or retired. However, since ALPA has publicly stated that they do not represent retirees, URPBPA will need to be actively engaged in that process as your representative.

Under Section 4041 of the federal Employee Retirement Income Security Act (ERISA), any action to actually terminate the pension plan is technically between United, as the plan administrator, and the Pension Benefit Guarantee Corporation (PBGC), the federal agency established by ERISA to monitor and protect private pensions. However, we would still become involved in an attempt to influence the outcome of that process in our favor.

The very unhappy experience of USAir's retired pilots in their post-pension termination period amply highlights the need for URPBPA's continued involvement. There are still a large number of disputes arising from the PBGC's handling of the USAir pilot pension plan relating to underpayment of pension benefits to retirees. Therefore, if the USAir experience plays out in a United pension plan termination, ALL United pilot retirees might be at risk of losing (or not timely receiving) expected pension income regardless of their age, when they retired or the amount of pension income they were receiving at the time of plan termination. Based on what is occurring at USAir, you might have to wait several years to receive the full amount of your PBGC guaranteed pension payments.

If the company does move to terminate the pilot pension plan, URPBPA will vigorously represent the interests of its members in the bankruptcy court and the termination proceedings before the PBGC. If the plan is eventually terminated, URPBPA will continue to represent its members, individually and collectively, to insure that they promptly receive the proper amount of pension payments due from the PBGC. Such intense representation over a significant period of time promises to be expensive and will require your continued financial support of our efforts if we are to be successful.

We will keep you advised of any new developments on this website as they occur.

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WEBSITE UPDATE 06/23/2004

The Retired Pilots Section 1114 Committee released the following statement on June 22, 2004

Once Judge Wedoff approved the modification to the retirees' medical plans, the Retired Pilots Section 1114 Committee began development of a mailing that would be sent to all pilot retirees and their dependents. The package will explain the details of the new plan, provide an explanation of the process that led to the revised plan, and will include some examples of how the retirees payments will change, including what the changes would have been under the Company's original proposal. The Committee's intent was to have the package in the mail to you the week of June 21. The Committee wants to compare the package we were mailing to pilot retirees to the enrollment package United was going to be sending to insure that there are no conflicts between the two documents.

On June 17, the Airline Transportation Stabilization Board denied United's application for loan guarantees. The Board did offer United the opportunity to submit a revised application and United is working on submitting the revision. With the ATSB denial, the Company has delayed the completion of their mailing and they do not have a version we can use for comparison purposes.

In light of these developments, the Committee has elected to delay our mailing awaiting receipt of the Company's package. As soon as we receive the Company's package, we will finalize our mailing and send it to you.

Please continue to check this website for the latest information.

The Retire Pilots Section 1114 Committee

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WEBSITE UPDATE number 2 06/11/2004

FROM PILOTS SECTION 1114 COMMITTEE

After United proposed to modify retiree medical benefits, representatives from the AFA, IAM, TWU, PAFCA, IFPTE, the Salaried and Management Committee and the Pilots Committee formed a Coalition to meet and negotiate with United as provided under the Bankruptcy Code. Agreement was reached between United and the Coalition on June 9, 2004.

Below is a very brief summary of the Agreement. The Committee will very soon be mailing to retirees a copy of the agreement, a more detailed description of the new plan and some examples of how the plan will affect retirees.

DRUGS: Mail order drugs at $16 for generic and $48 for name brand, with NO annual increases.

PPO Plan: Retirees will join actives in the Company’s PPO Plan, with deductibles at $250 single/$500 family and annual our of pocket maximums at $1,500 single/$3,000 family, 80%/20% cost sharing and unlimited lifetime maximum.

Pre-Medicare: Monthly payments using existing percentage cost sharing to continue, plus a surcharge. For charges from providers not in PPO network cost sharing to be at 60%/40% with lifetime $500,000 per person maximum. Maintenance of benefits vs. coordination of benefits will apply.

Post-Medicare: Monthly payments using existing percentage cost sharing to continue until it reaches 50%/50% and then stay at 50%/50% through 2010, plus a surcharge. Control of increases in years after 2010 to a maximum of 4 ½ %/year. Maintenance of benefits vs. existing coordination of benefits. This means that with Medicare as primary payer, out of pocket $1,500 per person limit must be reached before United begins contributing at 80%/20% cost sharing.

Surcharge: A surcharge will be added to insurance charges: in 2004 @ $22/person/month for pre-Medicare, $16/person/month for post-Medicare, increasing annually to $32.23/$23.44 in 2010, and then at capped @ 4 ½%/year.

Life Insurance: Company paid life insurance will be canceled. The savings from this cancellation been applied to reduce the cash that would have come additional retiree medical payments. The Medicare Part D Drug Plan credit will also be applied.

This new plan is more costly to retirees than our existing plan. It is far better than what was proposed by the Company. Cost escalation is controlled by fixing the drug costs and limiting future monthly cost increases.

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WEBSITE UPDATE 06/11/2004

The following release was distributed by the Retirees Coalition as a result of their negotiations with United Airlines over modifications to the retirees medical plan.

The United Retired Pilots Section 1114 Committee will be sending a letter to all retired pilots in the next week. The letter will contain a copy of the agreement between the Coalition and United, some examples of the affect the revised medical plan will have on pilot retirees, their spouses, and dependents, and additional information about the negotiations.

UAL Retirees OK New Benefits

Chicago, IL, June 10, 2004 - The United Airlines Retiree Coalition today announced an agreement with United Airlines that provides insurance benefit modifications for 50,000 of the bankrupt airline's retirees, their spouses and dependants.

"This agreement balances the company's need to remain competitive while acknowledging the fixed income of retirees," said IAM District 141 President Randy Canale. "The substantial resources of several AFL-CIO unions and dedicated retiree representatives working together made this fair and equitable agreement possible."

With this agreement, all United employee groups, both active & retired, will take part in the company's restructuring. Full details of the agreement will be released upon formal submission of the accord to the bankruptcy court for approval.

"Our top priority was to come to an agreement that protects the well-being of thousands of committed employees who have devoted their careers to making United Airlines a success," said Association of Flight Attendants United Master Executive Council President Greg Davidowitch. "The retiree coalition, banded together during our airline's most difficult time in history to formulate an innovative plan that addresses the company's financial need and minimizes the impact on our dedicated retirees."

The Coalition is comprised of the International Association of Machinists & Aerospace Workers (IAM), Association of Flight Attendants (AFA), Professional Airline Flight Control Association (PAFCA), Transport Workers Union (TWU), International Federation of Professional & Technical Engineers (IFPTE), Pilots Section 1114 Committee and Salaried & Management Section 1114 Committee

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WEBSITE UPDATE 05/22/2004

The following letter was sent to Mr. Tilton on May 19. It was signed by the individuals on behalf of their respective 1114 Representatives.


May 19, 2004


Glenn Tilton, Chairman & CEO
United Airlines, Inc.
P.O. Box 66100
Chicago, Illinois 60666


Re: Section 1114


Dear Glenn:

The undersigned represent salaried and management and nearly all unionized pre-July 1, 2003 retirees. This historic coalition has joined together to forge a common and productive response to the Company's request that retirees agree voluntarily to reduce their medical benefits.

On Friday, May 21, United intends to file a motion requesting that the Bankruptcy Court force the retirees to accept the Company's proposed reductions in retiree medical benefits. Before the Company files its motion, Section 1114 of the Bankruptcy Code requires the Company to serve its proposed modifications on the authorized representatives, provide information necessary to evaluate the proposal, and confer in good faith with the representatives about its proposal. We believe the Company has not met these requirements.

In March, the Company served its proposal, which sought cuts in benefits and increases in contributions which are excessive for a number of reasons, including:

* The modifications effectively result in cuts in Company-sponsored income for the vast majority of retirees which are far deeper than those demanded of active employees under the Company's restructuring.

* Unlike any other stakeholder in United, the Company is demanding that retirees make a sacrifice that is unlimited in time or amount.

* The proposed cuts would survive and escalate far beyond the duration of the business plan that underlies United’s reorganization.

* The retirees have no opportunity to share in the ultimate success of United through renegotiation of their terms, or participation in the existing gain-sharing and profit-sharing programs.

* These demands are made of people on fixed pensions, who are least able to bear the permanent, escalating burden that would be imposed.

* These retiree medical benefits are deferred compensation that was promised to the retirees in return for a lifetime of productive service to the Company.

* Thousands of employees retired in the first half of 2003 in the expectation that by doing so they would protect their retiree benefits.

As much as we believe that the Company's proposal is unreasonable and inconsistent with Section 1114 standards, we, and the retirees we represent, share everyone's desire that the Company succeed. The retirees are willing to make a fair and equitable contribution to a successful reorganization. In that spirit, we made good faith counterproposals which addressed the Company's concerns:

* Recognizing the framework of the Company's business plan, which projects financial results through 2010, we offer substantial economic concessions which total nearly $300 million over that period.

* In each year of the Company's business plan, the economics of our proposal match what the Company has told us is the most critical financial criterion for obtaining exit financing.

* The problem is not permanent, as the Company's cost for pre-July 1, 2003 retiree health insurance will shrink as that population shrinks. Nonetheless, much of the value of our proposal is through changes which last indefinitely beyond the term of the business plan.

* Sacrifices offered by retirees under our proposal take into account their ability to pay.

We had hoped that, in response to our sincere and constructive counterproposals, the Company would confer in a good faith effort to reach a consensual agreement. Instead, in response to each of our proposals, the Company's negotiators repeatedly made fundamentally the same proposal that had been made in March. Intransigence is not good faith negotiations.

With the Company's self-imposed deadline for filing the Section 1114 motion fast approaching, only a fundamental change in the Company's approach to these discussions will prevent destructive litigation that will serve no ones interest. We are sure that you recognize that the character of this Company will be defined for many years to come by its conduct during this bankruptcy process, and in particular how it chooses to treat its most vulnerable constituency. To that end, we urge you, as the leader of the corporation, to seize this opportunity to reach consensus with 35,000 retirees and thereby to demonstrate that the Company's transformation is not simply financial, but extends to the culture of this organization and the morale of its employees.

Considering these circumstances, we look forward to your immediate response.


Very truly yours,

Charles F. McErlean, Jr. Chairman, SAM Section 1114 Committee	Roger D. Hall Chairman, Pilots Section 1114 Committee
Gregory Davidowitch President, UAL-MEC, AFA-CWA	S.R. Canale President & Directing General Chairman, IAM District Lodge 141
Mikel Lepers President, PAFCA-UAL	David Durkin President, TWU Local 540

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Website Update 05/12/2004

The Retired Pilots Section 1114 Committee continues to meet in Chicago on a regular basis. Each of the groups representing retirees in the Section 1114 proceedings have requested information from United to allow their representatives to evaluate United's proposed changes to retirees’ medical benefits and to enable the representatives to be knowledgeable about the company's financial situation and it's future business plans.

United has responded to these requests by providing some of the requested information. However, in some cases it has provided incomplete information or has refused to provide the requested information. Information that is supplied in response to a request from one representative group is given to all the retiree representatives. The various representative groups continue to request that United provide all of the requested information.

Should United continue to refuse to provide the information, the retiree groups will appear before Judge Wedoff and ask him to order United to supply the information so the retiree representatives can have a complete understanding of the impact of United's proposed changes to the retirees’ medical plans and the company's present and projected financial situation.

The experts retained by the retiree representatives have been analyzing the data that United has provided and we meet with our experts regularly to be briefed on their analysis of the data. These meeting will continue throughout the Section 1114 proceedings.

We have had no additional meetings with United as of this date. Further meetings will be held once the Committee has received the information requested and our actuarial and financial experts have had sufficient time to examine the information and brief the Committee on the results of their findings.

With the passage of the pension legislation, which provided for a revised interest rate for pension funding calculations and relief from the required Deficit Reduction Contributions, United has withdrawn it's previous requests to the IRS for pension funding waivers

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WEBSITE UPDATE 04/09/2004

On April 8, 2004, the Senate passed legislation authorizing changes to the interest rate used to calculate pension funding liabilities and relief from Deficit Reduction Contributions for corporations. The House passed the same legislation last week and the bill now goes to the President for his signature. The administration has said it will sign the bill.

Both of these items will be helpful to United Airlines in obtaining the loan guarantees from the Airline Transportation Stabilization Board. It has been widely recognized that exiting from bankruptcy under United's current reorganization plan is dependent upon the approval of the loan guarantees by the ATSB.

The Board of the United Retired Pilots Benefit Protection Association thanks all of our members who contacted their Senators asking them to approve H. R. 3108. This is just one piece of what United will need to emerge from bankruptcy, but it was a very necessary piece.

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WEBSITE UPDATE 04/02/2004

The House/Senate Conference Committee has reported out the compromise version of H.R. 3108, the Pension Reform Bill. All retired pilots and interested parties should IMMEDIATELY call, fax, or e-mail their Senators urging them to vote for the Conference Committee Report on H. R. 3108. The provisions that are of greatest importance to you as a retired United Airlines pilot and to United Airlines are contained in the bill. The provisions related to multi-employer pension plans (which do not affect airlines) contain less than what the Democrats wanted and they are threatening to vote against 3108.

This legislation is vitally important to United as the Company needs the relief provided in the bill to help obtain the loan guarantees from the Airline Transportation Stabilization Board. The loan guarantees are an integral part of United's reorganization plan.

We urge all retired pilots and interested parties to make these calls. Sending a letter will not help as the letter would not get to your Senators before the vote is taken. You can call, fax, or e-mail your Senators' local office or the Washington, D.C. office. If you need to find a contact number for your Senators, you can get them from your local phone book, or online from www.Senate.gov.

PLEASE MAKE YOUR CALLS NOW!

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WEBSITE UPDATE 03/26/2004

The following statement was prepared and released by the United Airlines Retired Pilots 1114 Committee. The Committee was established by the Bankruptcy Court in the UAL bankruptcy case.

PUBLIC STATEMENT OF THE
SECTION 1114 RETIRED PILOTS’ COMMITTEE

The Court in the UAL bankruptcy case appointed Alan L. Black, Roger D. Hall, Harlow B. Osteboe, William H. Palmer, and Gerard Terstiege, as the Section 1114 Retired Pilots’ Committee (the "Committee"). Section 1114 is the portion of the Bankruptcy Code which allows the Court to appoint a committee of retired pilots to speak for all of the retired pilots concerning United Airlines’ plan to reduce insurance benefits to its retirees. The Air Line Pilots Association ("ALPA") does not represent its retirees in these matters.

Under the provisions of Section 1114 the Committee is to enter into good-faith bargaining with United and, if an agreement cannot be reached, the Bankruptcy Court will decide whether United’s planned reductions to retiree insurance are a necessity for United’s emergence from bankruptcy and whether the modifications are fair and equitable. This month, the Committee met with its attorneys and actuary who will assist the Committee in the Section 1114 process.

On March 17, 2004 the Committee and its attorneys and actuary met with United’s representatives. Also attending the meeting were the salaried and management retired employees committee and their advisors. The purpose of the meeting was for United to make a proposal describing the reductions to retiree insurance benefits United believes are required.

Part of the presentation dealt with the financial condition and projections of United, which United believes justify the necessity of the reduction of retiree insurance benefits. United would not release certain financial and business plan information to the Committee unless the Committee entered into a confidentiality agreement. An agreement was signed by United and the Committee. The Company then provided certain information to the Committee as part of the presentation. United also entered into a confidentiality agreement with the salaried and management retiree committee, as United has done with other authorized representatives of retiree groups (i.e., the Flight Attendants’ union).

At the presentation, United provided their proposal which is entitled "Retiree MedicalBenefits Proposal for Employees Who Retired Before July 1, 2003". A copy of the proposal is attached. The United proposal would modify the medical plan for pilots who retired prior to July 1, 2003 to be the same as the retired medical plan for pilots who retire after July 1, 2003. One difference between the plan for future retirees and the plan currently in place for pre-July 1, 2003 retirees appears to be some reduction in the cost of the medical insurance plan for individuals who have been retired for a longer period of time.

The Committee and its advisors are analyzing the data United provided. As the process moves forward, determinations will be made concerning what additional data is required for the Committee to review United’s financial projections and its proposal.

Further meetings with the Company will be scheduled as soon as the Committee has an opportunity to evaluate the material presented to the Committee.

Attorneys for United advised the Committee that United plans to file a motion in Bankruptcy Court on April 15, 2004, asking the Court to impose their proposal for modifications to the retired employee’s medical plan, if the retiree groups have not reached a consensual agreement by that date.

The Committee has discussed United’s proposal with the authorized representatives of the other retiree groups and will continue to do so. The Committee will continue to evaluate and request information from United to perform the duties assigned to it by the Court.

The Committee will attempt to keep the retired pilots informed as to the status of negotiations and any schedule which the Court may set for a resolution of the Section 1114 insurance issues.

Dated: March 25 , 2004

The Section 1114 Retired Pilots’ Committee
Alan L. Black
Roger D. Hall
Harlow B.Osteboe
William H. Palmer
Gerard Terstiege
Attachment

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WEBSITE UPDATE 03/09/2004

The Retired Pilots Committee appointed by Judge Wedoff to meet with United to discuss the Company's proposed changes to the retiree medical plans had their first meeting in Chicago on March 3. The Committee had an initial meeting in the morning to get to know each other better and to spend some time discussing the retired pilots medical plans.

In the afternoon, the Committee met with the U. S. Trustee. The Trustee briefed the Committee on the procedures that led to the formation of the Committee, the need to retain legal counsel and other professionals to assist the Committee, and general information about the Committees responsibilities and duties.

The Committee also received a briefing from an attorney from the law firm of Kirkland and Ellis who represents UAL in the bankruptcy proceedings. He told the Committee the Company did not want to modify the retirees medical benefits but they had no choice as it would be necessary for the Company to do so in order to be able to emerge from bankruptcy. He advise the Committee that United wished to meet with the representatives of all the retiree groups for the purpose of presenting the Company's proposed changes to the medical plans on March 11. At the conclusion of this meeting the Committee met with the Committee representing the Salaried and Management retirees.

The Committee plans to return to Chicago the week of March 8 to meet with various legal and other professional firms to begin the process of selecting the ones to assist the Committee. The Committee has advised United they will not be able to attend the March 11 meeting since they will be interviewing professional groups at that time.

Meetings with United will be scheduled once the Committee has selected their professional representatives and had an opportunity to meet with them.

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WEBSITE UPDATE 02/22/2004

On February 20, 2004, a hearing was held in Judge Wedoff's court to resolve a number of significant issues. During the course of the hearing the Judge announced the members of the retired pilots and the salaried and management committees. The members of the retired pilots committees are; Alan Black, Roger Hall, Harlow Osteboe, William Palmer, and Jerry Terstiege. There most likely will be an organizational meeting of the committee with the US Trustee in Chicago sometime the week of February 23. There has been no announcement of a schedule of meetings between the committee and United at this time.

The members of the salaried and management committee are; Ed Del Genio, Charles McErlean, John Samolis, Morton Wax, and Ed Westervelt.

At this hearing Judge Wedoff also announced that an examiner will be appointed to review the issues surrounding the AFA and IAM claims that United told AFA and IAM members that if they retired under their old contracts they would retain their current medical benefits and the Company is now seeking to reduce those benefits. These assurances caused many AFA and IAM members to retire early to retain the better medical benefits. The AFA and the IAM further claim that during these negotiations United was already planning to reduce retiree medical benefits and that United fraudulently concealed these facts from AFA and IAM members. The examiner will be appointed by the Judge on February 24.

UAL had requested an extension to June 30, 2004, of their period of exclusivity to present a reorganization plan to the court. The Judge decided he would give UAL a thirty day extension with the possibility of additional thirty day extensions if he deemed them to be warranted. He will continue to monitor UAL's progress toward emerging from bankruptcy and make the extension decision on a month by month basis

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WEBSITE UPDATE 02/06/2004

On February 5, 2004, Judge Wedoff determined that a committee of five retired pilots will represent United's retired pilots in discussions with United about proposed modifications to retired pilots medical benefits. Completed applications and questionnaires from interested pilots must be submitted to the U. S. Trustee in the UAL bankruptcy no later than 5 PM CST on February 17. Board members of the United Retired Pilots Benefit Protection Association (URPBPA) will be submitting their applications seeking to represent the 3,000 members of URPBPA. Judge Wedoff will review the applications/questionnaires and will appoint the retired pilots to serve on the committee at a scheduled status hearing on the UAL bankruptcy at 9:30 AM on February 20, 2004.

Discussions between the committee and United on the proposed modifications will begin shortly after the appointment of the committee. Judge Wedoff will determine the exact date and time.

United's other unionized employees will be represent in separate discussions with United by their respective unions. United's salaried and management employees will be represented by a committee similar to, but separate, from the retired pilots committee.

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WEBSITE UPDATE 02/03/2004

Yesterday, URPBPA's attorneys filed another brief with the bankruptcy court. The brief contained legal arguments in support of URPBPA's position that two separate retiree committees should be formed in the United bankruptcy, with one committee representing the interests of United's retired pilots and the other committee representing retired salary and management employees. The brief also argued that neither United nor its agents should be responsible for soliciting or recruiting committee members, collecting committee member applications or assisting in the preparation of any reports related to these applications. It is URPBPA's position that United should not be permitted to exercise influence over the selection of committee members who will negotiate with United over its proposed retiree medical benefit modifications.

United filed a brief with the Court opposing the formation of two separate retiree committees. It is United's position that one retiree committee should be formed to represent United's retired pilots and its retired salaried and management employees.

Today, attorneys for the URPBPA, UAL, the U.S. Trustee's office and the Official Committee of Unsecured Creditors were present in Court once again to address issues related to the formation of retiree committees. First, the Court accepted URPBPA's position and stated that two separate retiree committees will be formed. URPBPA is very pleased that retired pilots will be given their own, separate committee to represent the interests of United's retired pilots, survivors and dependents.

Judge Wedoff also expressed his continued concern regarding the manner in which United has gone about soliciting interest in committee membership. The Court wanted to know, for instance, why certain persons had been contacted regarding committee membership and not others. The Court asked how United determined who it would contact. Judge Wedoff's concerns regarding the manner in which retirees are being recruited for potential committee membership mirror the concerns of URPBPA's board of directors and attorneys.

Judge Wedoff also stated that the questionnaire United has been circulating and posting on Skynet does not ask the types of questions the Court needs answered in order to select committee members. As a result, a new questionnaire is being prepared. A number of URPBPA's board members will be submitting committee applications and seeking appointment on the retired pilots committee.

Judge Wedoff continued the matter for an additional hearing that will take place on Thursday, February 5, 2004. The Court has asked the parties present at today's hearing to work together to develop a more detailed membership application form. The Court has also asked the parties to make further recommendations to the Court regarding the manner in which the committee selection process should take place and the number of persons who should be selected by the Court to serve on the retired pilots committee.

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WEBSITE UPDATE 01/29/2004

A hearing was held in Judge Wedoff's court on January 29, 2004, on a motion filed by UAL to establish a single committee to represent retired pilots, their dependents and survivors, and the retired salaried and management employees. The motion also proposed to Judge Wedoff a set of procedures that UAL wants to be used for the selection of committee members. Attorneys for the United Retired Pilots Benefit Protection Association, UAL, the U.S. Trustee's office and the Official Committee of Unsecured Creditors were present.

After listening to presentations by URPBPA and UAL attorneys, Judge Wedoff deferred ruling on UAL's motion for a single committee and expressed concerns regarding some of UAL's proposed procedures for the selection of committee members. The attorneys for URPBPA argued that two committees should be established, with one committee representing the retired pilots, their dependents and survivors and the other representing the salaried and management group. Judge Wedoff stated that procedures used to collect applications from persons who wish to be selected as committee members should be as neutral as possible. He expressed concern that UAL's current proposal, which gives UAL and its agents responsibility for collecting these applications, at a minimum creates an appearance that the selection process is not being conducted in a neutral manner. It is URPBPA's position that the U.S. Trustee should collect these applications and that any report filed with Judge Wedoff regarding these applications should also be prepared by the U.S. Trustee's office, not UAL.

Judge Wedoff stated that any party that wishes to comment on issues regarding committee selection procedures or whether there should be one or two committees should file a brief with the court by Monday, February 2. URPBPA intends to file a brief outlining its position. Judge Wedoff will then entertain any additional oral arguments on Tuesday, February 3. It is anticipated that he rule on these issues at that time.

Judge Wedoff also stated that he has been receiving e-mails from a large number of retirees that contain comments regarding United's bankruptcy. While the Judge does not read private e-mails or other communications regarding the United bankruptcy (a Judge may only consider materials that are made available to all of the parties involved in the case), he stated that the volume of e-mails he receives has created an administrative burden for the Court. Judge Wedoff asked all of the attorneys present to do whatever they can to stop this traffic to his e-mail address, so please, do not send e-mails or letters directly to Judge Wedoff. If you are a retired pilot, survivor or dependent and you have a comment or concern regarding the United bankruptcy, please feel free to send an e-mail to URPBPA so that your concern may be given consideration by URPBPA's Board and attorneys.

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WEBSITE UPDATE 01/24/2004

On January 22, 2004, a hearing was held before bankruptcy court Judge Wedoff on an emergency motion filed by the United Retired Pilots Benefit Protection Association. The motion asked Judge Wedoff to appoint URPBPA as the representative of the retired United pilots, their dependents, and survivors to participate in any discussions on United's proposal to reduce retiree medical benefits and to increase the cost of medical insurance for United's retired pilots and their beneficiaries.

Judge Wedoff denied the motion on the grounds that appointing URPBPA as the representative of the retired pilots was premature at this time. He wants to evaluate the structure of a retiree committee or committees before making any decisions concerning who will be the representatives that serve on the committees. He did order that a process be started to insure that all of United's retirees are properly represented in any discussions United may have over the company's proposed changes to retiree medical benefits. He wants to insure that all retiree groups have the opportunity to hear United's proposals and to participate in discussions over any potential changes. URPBPA will be doing everything possible to insure that it's 3,000 members are properly represented in the establishment of the committee and it's representatives, as well as discussions on any proposals United makes to reduce retiree medical benefits.

United represented to Judge Wedoff that they would not meet with or discuss any of their proposed modifications to the retirees medical plans until the retiree committee or committees were formed by Judge Wedoff. Consequently, the meeting United had been planning to hold on January 26, 2004, with several unions and individuals United management was going to select to purportedly represent retired pilots has been canceled.

Judge Wedoff ordered United to present to the Court the company's proposals on the structure of a retiree committee by January 23, 2004. This is the first step in establishing a "Retiree Committee." A hearing on United's "Committee" proposal will be held in Judge Wedoff's court on January 29, 2004. At that hearing, URPBPA's attorneys will present our arguments that URPBPA should be recognized as the representative of the retired pilots, their dependents, and survivors.

The final decision on the structure and members of the "Retiree Committee" will be made by Judge Wedoff after he has received presentations from the retiree groups including URPBPA.

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WEBSITE UPDATE 01/24/2004

On January 20, 2004, the United Retired Pilots Benefit Protection Association sent its members an e-mail requesting that each member contact their Representatives and Senators urging support of pending pension reform legislation. If you are a member and you did not receive an e-mail from URPBPA, that means that we either do not have a current e-mail address for you or the e-mail address that we have is incorrect. E-mail is the fastest and cheapest way for us to communicate with our members. From time to time there will be occasions where we need to get information to you quickly. If you are a member and you did not receive the January 20 e-mail from us, we ask that you forward your current e-mail address to us using this Information and Membership Requist link.

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WEBSITE UPDATE 1/21/2004

Today, January 21, 2004, the United Retired Pilots Benefit Protection Association filed an emergency motion in U.S. bankruptcy court in Chicago. URPBPA is requesting the court to appoint URPBPA as the representative of the retired United pilots and their beneficiaries in any discussions United Airlines may have concerning United's announced plan to reduce retiree medical benefits and increase the amount United charges its retired pilots and their dependents and survivors for medical insurance coverage.

Since United announced their plans last week, URPBPA's attorneys have had discussions with United's management and UAL's attorneys requesting that URPBPA be included in any discussions concerning proposed changes to the retired pilots' medical plans. URPBPA President Roger Hall sent UAL Chairman, CEO and President Glenn Tilton a letter late last week requesting that URPBPA be recognized as the representative of the retired pilots, their dependents, and survivors.
Any attempt by United to exclude URPBPA from discussions concerning changes to existing pilot retiree medical insurance or to include individuals or groups of individuals other than URPBPA and its team of attorneys and experts as the representatives of retired United pilots and their dependents and survivors will be challenged most vigorously by URPBPA in the bankruptcy court.

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WEBSITE UPDATE 1/19/2004

The United States Congress returns to Washington on January 20, 2004. One of the first items on the agenda is pension legislation that was not completed during the last session of Congress. This pending legislation is vitally important to United Airlines and the retired and active employees of United.

There are two provisions of the pending legislation that are important to us. The first would establish a realistic interest rate to be used for determining pension funding requirements. This would replace the old 30-year Treasury bill rate. The U.S. Treasury is phasing out the 30 year Treasury bill and as a result it no longer reflects prevailing long-term interest rates.

The second part of the legislation that is important to us would provide some form of temporary relief from required Deficit Reduction Contributions (DRC’s) that United is required to make by existing federal law. Due to very low interest rates and the decline in the stock market, DRC's will be required of United and other airlines in the near future in order to adequately fund their Defined Benefit Pension Plans. It has been widely reported in the financial press that it will be very difficult for United to make the DRC payments as currently structured. DRC relief will allow companies to make their payments over a longer period of time which should assist UAL in obtaining the financing package necessary to emerge from bankruptcy without terminating its Defined Benefit Pension Plans.

We sent you a letter several months ago urging you to write to your congressional representative seeking their support for HR 2719, which was then pending in the House. That bill is no longer active. Now is the time for you to once again contact your congressional representatives, especially your Senators, and urge their support of the new legislation that will be introduced early in the coming session.

Individual letters written to your representatives are the most effective means of communicating your thoughts to them. If you do not feel comfortable writing your own letter, a sample letter is available by clicking here --for you to modify or send as is.

In order for your comments to reach your representatives before Congress votes on this legislation, it will be necessary for you to fax or e-mail your letter to your representative. Because of the anthrax scare, congressional mail is now delayed for weeks and it will not reach your representative prior to the upcoming vote.

You can find an e-mail fill-in form and fax numbers of your Senators and Representative at www.congress.org. Enter your zip code in the box near the top of the home page. In some cases it will require your full 9-digit zip code to locate your congressional representatives.

Please contact your representatives today and urge their support of legislation to replace the 30-year Treasury bill interest rate and to provide for DRC payment relief. Time is of the essence.

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WEBSITE UPDATE 1/15/2004

"The United Retired Pilots Benefit Protection Association released the following statement today regarding United's announcement of their intent to reduce retiree medical insurance benefits and to increase the cost of medical insurance for retired pilots, their dependents, and survivors."

United Retired Pilots Benefit Protection Association

Officers and Directors:    Roger D. Hall, President    Dennis D. Dillon, Vice-President    Gerard Terstiege, Secretary    Eugene M. Cummings, Treasurer

One North Wacker Drive Suite 4130 Chicago, IL 60606 www.ualpilotpension.com

Additional Directors:      Lise Bentsen      Frederick C. Dubinsky      Raymond P. Fink      James M. Krasno      William L. Rutherford

 

 

FOR IMMEDIATE RELEASE – JANUARY 15, 2004 - CHICAGO, IL.

 

The United Retired Pilots Benefit Protection Association expressed it's strong opposition to United Airlines’ announcement of management’s plans to reduce retiree medical benefits and to require United’s already retired pilots to pay a greater portion of their medical insurance costs.  As of January 1, 2004, consistent with a previous agreement, United's retired pilots began paying a considerable portion of their medical insurance costs.  Prior to that date, United’s pilot retirees, who were under age 65, were not required to pay any of the costs for their medical insurance coverage.

 

URPBPA President, Roger Hall, stated, "It is unconscionable for United to seek to increase the costs of the retired pilots’ medical insurance and to reduce their benefits less than one month after the retirees began to pay a considerable portion of their medical insurance premiums."  Hall continued, "These added costs and reduced benefits will add a great financial burden to our retirees, particularly those with serious medical problems.  Our retirees had expected to retain the medical insurance coverage they had in place at the time of retirement."

 

URPBPA will be seeking to represent it's more than 3,000 members in discussions with United over any changes to the retired pilots’ medical insurance benefits.

 

For further information contact:

 

Capt. Ken Bradley, ret.:            757-220-1259 or

                                                            757-508-7717

 

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WEBSITE UPDATE 12/18/2003

The United Retired Pilots Benefit Protection Association is sending a letter to all members this week that will describe the latest URPBPA activities and provide a fiscal year end report. Enclosed with the letter you will find a financial report from our accountant and information on the tax deductibility of your Association dues, startup costs and Operating Fund payments.

During the last four months URPBPA has been working closely with ALPA in promoting legislation in the Congress that would provide relief to companies who have substantially under funded pension liabilities. We have a good working relationship with Duane Woerth, the President of ALPA, and ALPA's Legislative Affairs Department and we have been coordinating our legislative efforts with those of ALPA.

Since our letter to our members in August, where URPBPA requested that they write to their Representatives asking them to support H. R. 2719, the House passed legislation that included provisions that would have allowed United to make their Deficit Reduction Contributions over a longer period of time. While this legislation did not have all of the provisions United desired, the company did indicate that the relief granted in the House bill would be sufficient for them to proceed toward emerging from bankruptcy.

The problem in getting the legislation completed occurred in the Senate. We had been informed that there were sufficient votes in the Senate to pass legislation that would address United's problem. Additionally, the leadership of both the Republicans and Democrats were supporting the legislation. Consequently, URPBPA has not been urging our members to write to their Senators since there appeared to be adequate support to pass the relief legislation. Unfortunately, the legislation did not come up for a vote in the Senate due to the opposition of the Bush administration and the fact that one Senator had repeatedly stated that he would block any pension relief legislation, especially one that helped the airlines. This proved sufficient to block any vote on the measure under the rules the Senate was using to conduct business at the end of the session.

URPBPA will continue to assess the legislative situation and to work with ALPA to secure passage of appropriate relief when Congress returns in January. If it is deemed to be helpful, URPBPA will, at that time, request that our members contact their Senators or Representatives in Congress.

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WEBSITE UPDATE 11/16/03

Medical Insurance Premiums

Notices are going out from UAL to recent pilot retirees regarding their medical insurance for 2004. The first mailing had some errors that were corrected with a second benefit mailing. Pilots are surprised that UAL will require them and their spouses to pay for pre-medicare coverage in 2004. ALPA Retirement and Insurance committees have expected this for years. The 1991 Agreement allowed for cost sharing as soon as projected medical costs exceeded the 1991 cost Baseline + 5%. See Letter of Agreement 91-5. Managed care was part of the 1991 Agreement - it reduced medical costs substantially. As a result, it took a long time, but the 1991 baseline + 5% has been exceeded, triggering cost sharing per the 1991 Agreement. These cost sharing payments are not related to UAL's bankruptcy status.

Please refer to the UAL Summary Plan Description for Pilots, and go to Contributions, under the Benefits After Retirement tab, beginning on page B5 for details. The amount a pilot pays is dependent upon years of service - from 20% of the entire premium for a pilot with 30 or more years of service to 60% for a pilot with 10 years of service. For recently retired pilots with brief UAL careers and families at home the cost could be substantial.

There should be little change for the retired pilots who are over 65 receiving Medicare - they already pay UAL a cost sharing amount for their Comprehensive or Supplemental insurance policies.

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WEBSITE UPDATE 10/03/03

URPBPA Commences New Fundraising Effort

Recently, UAL announced that the company would not be emerging from bankruptcy at the end of 2003, as management had previously anticipated. They now expect to emerge during the first half of 2004. In a recent court appearance, UAL's lead attorney in the bankruptcy case reported to Judge Wedoff that, "Pension contributions and retiree medical benefits consume a significant portion of the company's cash flows." This statement clearly indicates that, while the company has taken no action to date to reduce or terminate retiree benefits, management and UAL’s board of directors are seriously looking at the liability of the company's retiree benefit packages going forward. It has also been widely reported in the financial press that UAL must address the alleged multi-billion dollar under-funding of the company’s pension plans in order to attract sufficient financing to emerge from bankruptcy. See this Denver Post Article
for further information.
Due to the bankruptcy process being extended, it is necessary for URPBPA to raise additional funds to continue to be able to monitor the bankruptcy proceedings and to have our attorneys properly prepared to represent our interests in the bankruptcy court should UAL take any action to reduce or terminate any of our retiree benefits.

URPBPA members should look for a mailing from URPBPA next week that will provide additional detailed information on our fundraising effort and the reasons behind it.

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WEBSITE UPDATE 08/23/03

MORE ON PROOFS OF CLAIM

On August 20, 2003, URPBPA's attorneys mailed all of the stamped copies of the "proof of claim" filings we have received from Poorman-Douglas (UAL's agent) to URPBPA members who submitted stamped self-addressed envelopes. Of the approximately 2600 proofs of claim we sent to Poorman-Douglas, they failed to return stamped copies for 948 of those proofs of claim. We have sent Poorman-Douglas the names of all of the URPBPA members for whom proofs of claim have not been returned to us and we have Federal Express receipts demonstrating that the proofs of claim were delivered to them. Our attorneys are working to obtain stamped proofs of claim from Poorman-Douglas and these will be mailed to URPBPA members as soon as we receive them.

If you do not receive a copy of your proof of claim within the next few days, you either did not provide us with a stamped self-addressed envelope or you are one of the 948 persons for whom a stamped proof of claim was not returned to us. We ask everyone to be patient while we work with Poorman-Douglas to obtain the missing stamped copies of proofs of claim.


WEBSITE UPDATE 07/26
URGENT -- CALL TO ACTION

On July 4, 2003, Representative David Camp (R-MI) and a bipartisan group of lawmakers introduced legislation, H.R. 2719, The Air Line Pension Act of 2003 that would protect the pension plans of active airline employees and retirees. The bill includes a temporary special funding rule for certain defined benefit plans (our "A" plan) maintained by passenger airlines. This special funding rule would be available for any plan that a passenger airline maintains if the plan has a funded percentage of less than 80%, as of 1-1-03. The legislation would also restore the defined benefit plan of the US Airways pilots, which was terminated as part of the US Airways bankruptcy.

As many of our members are keenly aware, defined benefit pension plans, particularly in the airline industry, are facing an unprecedented pension funding crisis. This has already resulted in US Airways terminating its pilots' defined benefit plan, raising fears that the plans at other airlines, including United, could soon follow.

ALPA, along with a coalition of airlines and all the major AFL-CIO unions, spearheaded the effort to develop this legislative proposal and to secure its introduction into Congress. United retirees can now help generate maximum congressional support for this bill by contacting their Congressmen or Congresswomen as soon as possible and urging them to co-sponsor H.R. 2719 and to work for its speedy passage.

Under the current rules, pension plan sponsors, such as United, are required to make large cash contributions if their plans fall below a funded level of 80%. These so called Deficit Reduction Contributions (DRC) are in addition to the normal funding requirements. Given the state of the economy, in general, and the airline industry, in particular, it is almost impossible for a plan not to become under funded, thus triggering the required large cash payments.

H.R. 2719 provides passenger airlines with a temporary five-year moratorium on the DRC, and a twenty-year amortization period for the unfunded liability during that time frame. Carriers would still be required to make the minimum funding contributions required under ERISA, but ALPA and URPBPA believe this proposed legislation would provide the needed flexibility for carriers to make up the deficits.

You need to contact your Congressman or Congresswoman without delay and urge him or her to co-sponsor H.R. 2719. The best outcome would be to have this bill passed by Congress and signed by the President before United comes out of bankruptcy, since its provisions would then be available to United as part of their reorganization plan. The time frame for this to happen is growing very short, so your support and action is needed NOW.

You can access a sample letter by clicking on this link Sample Letter. This letter is in rich text format, so you can download it and open it with most word processors to complete the address. If that does not work for you, there is a generic letter that can printed from the screen and signed Sample Letter (Use your browser's back button to return to this page) 2. We urge you to complete and sign one of these letters, or create a personalized letter of your own, and U.S. mail, e-mail or fax it to your Congressman or Congresswoman today. You can obtain your representative's addresses and fax number by going to www.congress.org and entering your zip code in the search box. You are also urged to encourage as many of your fellow retirees as possible to promptly send a letter to their Congressman or Congresswomen, as well. Don't delay-DO IT TODAY!

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WEBSITE UPDATE 06/26/2003

There has been no activity in the UAL bankruptcy case directly affecting retirees since we completed the process of filing the "Proof of Claim" forms in May.

We have received inquiries from several members who sent in a stamped, self-addressed, envelope wondering when they can expect receipt of the stamped copy of their "Proof of Claim" filing. Poorman-Douglas, UAL's agent in this matter, has taken several weeks to complete the processing of the claim forms. Our attorneys just received the first stamped copies back from Poorman-Douglas last week and forwarded them to the members involved. We will be sending out the remaining stamped forms to those members who provided return envelopes as we receive them from Poorman-Douglas.

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WEBSITE UPDATE 05/25/2003

    We have been made aware of some misleading and erroneous information that is being disseminated to retired pilots and asked our attorneys to provide a response for the members of the URPBPA Board. Rather than simply refuting these inaccuracies, our attorneys instead decided to speak to the issues. We have provided their analysis below for the benefit of all retirees:

From the URPBPA Board of Directors:

    We would like to take this opportunity to emphasize some things URPBPA and its membership should keep in mind:

    First, as we have said before and as it is stated on RUPA's website, United has not, to date, taken any of the required steps for terminating any of the pilot retiree pension or medical benefits. But this does not mean United will not, at some later point in time, attempt to modify or terminate such benefits. It will be our position that URPBPA's members remain entitled to receive their full "A" Plan pension and medical benefits.

    Those people who may have been persuaded to believe that United will not or can not terminate retiree benefits or who have received misinformation about URPBPA should take note of a few important facts. On page 78 of its Memorandum in Support of Debtors' Motion to Reject Collective Bargaining Agreement, filed on March 18, 2003 (a copy of which may be obtained at www.pd-ual.com), United made the following statement:

These sacrifices leave no doubt that United has spread "the burdens of saving the company to every constituency." Garofalo's Finer Foods, 117 B.R. at 370. The only exceptions to this rule have been the retirees. To date, United has not determined that it is necessary at this juncture to seek a distress termination of United's pension plans. Additionally, although United continues to analyze whether it will become necessary to seek to reduce retirees' medical benefits, United's present proposal does not include any such reductions. Circumstances may change, however, necessitating that the Company expressly reserve the right to revisit these issues as may be warranted by future developments.

This statement shows that United may, at some future point, file a petition to terminate or modify retiree benefits.

    Second, as it can be seen from the US Airways case, benefit termination proceedings can occur very quickly in Chapter 11 cases, often times leaving unorganized retirees with a very limited ability to defend themselves. Although a few groups of retired pilots formed and objected to the proposed termination of US Airways' allegedly under funded pension plan, these groups uniformly complained that the short notice period they received did not give them sufficient time to defend themselves. For example, the brief in opposition to the distress termination motion submitted by the Retired Pilots Association of US Airway (the "Soaring Eagles") stated that

...this hurried procedure eliminates the retired pilots' ability - and right - to take necessary discovery under Bankruptcy Rule 9014. As a result, if US Airways' motion is allowed to stand as is, US Airways will be able to affect this momentous, potentially catastrophic result of Plan termination with barely a wimper from the effected parties.

When the US Airways bankruptcy court issued a memorandum opinion on March 7, 2003 (the order is currently being appealed), it addressed this issue by acknowledging that:

[v]igorous objection was raised by many of the objecting parties that 20 days notice, even if technically sufficient under the Federal Rules of Bankruptcy Procedure and the case management order entered in the case, was wholly inadequate as a practical matter, given the complexity of the financial issues. The court was not unsympathetic to that argument but concluded that the circumstances did not permit the hearing to be put off and required the motion to be promptly decided.

  If US Airways succeeds in terminating its defined benefit plan, this termination will affect all of US Airways' retired pilots, including pilots who have been retired for more than 7 years. If US Airways' succeeds in terminating its pilot defined benefit plan, these pilots will receive the PBGC's guaranteed benefit, which will be lower than the benefit most of them received before plan termination. In addition, these retires may receive some portion of their non-guaranteed benefits if the PBGC is able to recover enough money from US Airways or the terminated US Airways plan. The bottom line is that if the US Airways plan termination is successful, the benefit checks received by the affected retirees could be significantly reduced.

    This leads to one of the most important lessons we can learn from the US Airways bankruptcy. If United's retired pilots are organized, they will be better prepared to defend against a petition to terminate or modify retiree benefits. URPBPA is in a better position to defend United's retired pilots than were the US Airways retiree groups because URPBPA is already formed, organized and preparing for the possibility that United may file a benefit termination petition.

    Third, as we know, URPBPA does not seek to obtain any "extra compensation" for its members or any of United's pilot retirees. URPBPA does not have the legal authority and does not seek to redistribute the benefits United's retired pilots receive from the defined benefit plan (the "A" Plan). URPBPA seeks to defend, by whatever legal means necessary, the benefits to which United's pilot retirees and other persons receiving pilot retirement benefits are presently entitled. URPBPA hopes that United emerges from its reorganization without changing anything about the manner in which its pilot retirement benefits are structured and distributed. We know that URPBPA would consider all of its efforts to date to have been a great success if United never files a single motion in the bankruptcy court aimed at modifying pilot retirement benefits.

    Fourth, determining whether and to what extent the "A" Plan is, in fact, currently under-funded requires the use of complicated actuarial assumptions. These assumptions are based upon demographics, projected interest and mortality rates and a number of other factors. Therefore, when people make offhanded estimates about the extent to which United's "A" Plan is under-funded, the accuracy of these estimates cannot be accepted without competent, professional analysis.

    Fifth, and lastly, RUPA is a social organization that has no responsibility for the actions taken by URPBPA. Although RUPA, as a service to its members, posts information on its website pertaining to URPBPA and a number of other organizations, RUPA and URPBPA are separate organizations with distinctly different goals. A suggestion by one retiree that RUPA has a responsibility to provide information to RUPA members about the United bankruptcy and that URPBPA should provide certain assurances to RUPA appears to be based upon that retiree's failure to appreciate the distinctly different purposes served by both organizations.

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WEBSITE UPDATE 05/13/2003

THE DEADLINE FOR FILING "PROOF OF CLAIM" FORMS HAS PASSED


Information is being circulated in some quarters which inaccurately characterizes the goals and intent of URPBPA. We are reposting our original statement of the policy and goals of URPBPA.


STATEMENT OF POLICY AND GOALS

UNITED RETIRED PILOTS BENEFIT PROTECTION ASSOCIATION

The United Retired Pilots Benefits Protection Association (URPBPA) was formed by a group of retired United Airlines pilots concerned that a bankruptcy filing by United Airlines would put at risk the pensions, health insurance, life insurance and other benefits that retirees, their dependents and survivors currently receive according to agreements between United Airlines and the Air Line Pilots Association (ALPA) and according to established past practice. ALPA generally represents only active pilots, not retirees.

It is the goal of URPBPA to ensure that the pensions, health insurance and other benefits promised by United Airlines to the retired pilots, their dependents and survivors for the years of good and faithful service continue unchanged.

If bankruptcy court mandated changes to benefits become inescapable, URPBPA will take all possible actions to minimize any changes in a fair and equitable manner.

Retirees are the group most vulnerable to harm by reductions in benefits and have the least time left to recover from any such reverses. Our goal will be to enlist all possible support to prevent harm to this population who have faithfully devoted all or most of their working lives to their employer— United Airlines.

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Website Update 03/27/03

While encouraging, the fact that the just concluded Tentative Agreement (TA)* between ALPA and UAL reduces, but does not eliminate, the future pensions and benefits for active pilots and their survivors should not lead anyone to believe this is the final word on the matter.

We need only look to US Airways for instructive information. As part of their company's economic recovery plan, the US Airways pilots had ratified an agreement retaining their defined benefit pension plan (what we at United call the "A" Plan). A few months later, after suffering additional financial reverses, US Airways summoned ALPA back to the negotiating table. This round of talks resulted in a subsequently ratified agreement containing further givebacks. Later still, after US Airways alleged that the massive contributions required to fund the pilots' pension plan would prevent an emergence from Chapter 11, the bankruptcy court gave a green light for the termination of the pilots' pension plan. US Airways quickly returned to the negotiating table and secured an agreement from ALPA resulting in the termination of the US Airways pilots' defined benefit pension plan. Active US Airways pilots will receive a new defined contribution plan, while US Airways pilots who have already retired will get only limited protection from the PBGC.

Notwithstanding the recent United pilot TA, there still lingers the distinct possibility that UAL will eventually seek to reduce or terminate retiree benefits. As management reported to the bankruptcy court on March 17th as part of its 1113(c) motion to abrogate union contracts, it is also within the realm of possibility that UAL could eventually be forced to liquidate. While URPBPA would like nothing more than for United to reorganize without affecting retiree benefits, URPBPA also stands ready to defend the benefits retired pilots have earned, if necessary.

* The United pilot TA can be found at www.ALPA.org. It is in "term sheet" format and is expected to be reduced to contract language if successfully ratified by the active pilots.

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Website Update - 03/04/03

United has not, to date, filed a comprehensive reorganization plan nor have they filed any specific petitions requesting modification of any retiree benefits. Attorneys for URPBPA continue to monitor the proceedings in federal bankruptcy court in Chicago and will take appropriate action if and when it becomes necessary.

URPBPA has 2159 members as of 0900, March 3rd. Members of URPBPA, who know any individuals currently receiving United pilot retiree benefits who have not yet joined our organization, are requested to encourage them to do so. An application form can be downloaded from this website.

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Website Update - 02/18/03

Attorneys for the United Retired Pilots Benefit Protection Association (URPBPA) made the initial filing on behalf of URPBPA's members with the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division in Chicago on Tuesday, February 12. This filing establishes URPBPA as an interested party and insures that we, along with about 500 other entities, will receive notice of all legal filings made in UAL's case.

The URPBPA Board has developed a list of frequently asked questions (FAQs). It is currently posted as a link from this website. In addition to a number of questions and answers about URPBPA itself, there are a number of questions relating to individual circumstances and benefits that URPBPA is neither qualified nor equipped to answer. However, we will offer suggestions of other sources you may wish to query to possibly get some of those questions answered.

The following 3 files have been mailed to everyone on our mailing list. They are in Adobe PDF file format, and the Adobe Acrobat Reader program is required for viewing.

Solicitation Letter
Statement of Policy and Goals

It is important that we be able get in touch with you at this critical juncture. If you have not already done so, please provide the contact and retirement information on the form accessed by clicking on the "Information Request" link in the upper left hand corner of this site. Please include in the Comments field the reason for submitting the Information Request. Filling out this electronic information form does not enroll you in membership in URPBPA! Membership can ONLY be accomplished by filling in the Information and Membership Request form. An application will then be mailed to you.

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For Information Contact Jim Krasno

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United Retired Pilots Benefit Protection Association