US - Continental Airlines announced yesterday it would pump US$71m into its pension plans, bringing the company's total contributions since 2002 to $1.2bn.
Continental CEO Larry Kellner said the latest contribution "significantly exceeded" the minimum funding requirement applicable to the airline's plans.
"This is another step that demonstrates our commitment to meeting our pension obligations," said Kellner.
The news comes just one month after American Airlines made an additional US$100m contribution to its employees' defined benefit pension plan on top of the $223m minimum required pension funding obligations for 2006.
Tackling burgeoning airline pension deficits, which have placed a heavy burden on the Pension Benefits Guaranty Corp and the taxpayer, has long been a delicate topic in the US.
It recently emerged the PBGC would have to pay nearly US$1bn into the Delta Air Lines pilots retirement plan after taking responsibility for payment of pension benefits to more than 13 000 active and retired pilots.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
In this week's Pensions Buzz, we want to know whether bosses should have to pay into the same staff DB scheme as their workers rather than their own executive pension fund.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.