Join the National Committee Renew Your Membership
National Committee to Preserve Social Security and Medicare National Committee to Preserve Social Security and Medicare
Social Security
Medicare
Other Aging Issues
Members and Supporters
Press Room





  • Become Involved
  • About Us
  • Contact Us
  • Resources


  • Celebrating 25 Years of Advocacy

  • Home Page
  • Increase Text Size
  • Decrease Text Size

    • AddThis Social Bookmark Button Email This Page to A Friend Print This Page

    FOR IMMEDIATE RELEASE:
    May 12, 2005

    CONTACT:
     Pamela Causey 202-216-8378/202-236-2123
    Ouida Williams 202-216-8405

    ~ 4 Million Seniors ~ One Voice ~No Privatization ~

    “ The majority of Americans rely on Social Security for half of their retirement income and as the United Airlines decision shows, it's one of the few remaining guaranteed benefits retirees can count on” --- Barbara B. Kennelly

    The Need for a Social Security Safety Net is Underscored Following United Airlines Decision to Abandon Pension Obligations

    The latest news from a Chicago bankruptcy court provides yet another powerful reminder to all Americans of just how difficult planning for retirement can be. More than 100 thousand United Airlines employees have been told the airline will no longer be responsible for $3.2 billion dollars in pension obligations. Meaning, many United Airlines employees will be facing retirement with far less in their pension accounts than promised.

    Just as US Airways employees experienced earlier this year, the bankruptcy of their employer has forced the federal agency that guarantees pensions, the Pension Benefit Guaranty Corporation, to assume responsibility for the plans. Some retirees at US Airways have seen benefits drop by as much as 50 percent since the federal takeover. Unfortunately, some analysts worry this is just the beginning of a pension collapse nationwide as companies find a way to work through bankruptcy at the expense of defined benefit pension plans.

    “Privatizing Social Security will turn a guaranteed benefit into a guaranteed risk.  Private accounts only threaten the program's long history of providing no-risk security for all Americans. That type of retirement security is exactly what workers are losing with every pension failure.” –Barbara B. Kennelly

    The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.