Northwest Airlines

Minneapolis, MN: The Pension Benefit Guaranty Corp. (PBGC) noted that Northwest Airlines has agreed to pay $14 million to settle overdue insurance premiums for its pilot retirement plan. Northwest and other employers pay the premiums to the government agency, which guarantees pensions. In exchange for the payment, the PBGC agreed to release Northwest from liens incurred over late payments Northwest made to its pension plans. The agreement does not resolve Eagan-based Northwest's under funded pension plans. The PBGC said when Northwest filed for bankruptcy protection in September 2005 that the airline's pensions were under funded by $5.7 billion. A pension overhaul signed by President Bush in August gives airlines an extra 10 years to meet funding obligations. (Jan-25-07) [PIONEER PRESS: PILOT PENSION]

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