House votes against UAL pension default
House votes against UAL pension default - Yahoo! News
: "WASHINGTON (Reuters) - The U.S. House of Representatives voted on Friday to block bankrupt United Airlines from defaulting on its pension plans and shifting them to the nation's pension insurer, the Pension Benefit Guaranty Corp. (PBGC).
Critics said the vote would have no practical effect, because the provision was attached to a government spending bill, while the PBGC does not spend government money. Under an agreement with United, the PBGC has already taken over one of United's four 'defined benefit' pension plans.
But supporters said the vote was a strong rebuke for United and other struggling airlines that might be tempted to follow United's lead by swamping the PBGC with their pensions -- which could force a taxpayer bailout of the agency."