Northwest Considers Freezing Pension Plan
From Dow Jones/Associated Press
Pilots and Northwest Airlines Corp. will discuss freezing their pension plan out of concern that the plan may not provide the benefits promised.
In an e-mail to pilots Friday, the Air Line Pilots Assn. said union bosses would discuss with the airline freezing the current defined-benefit plan and starting a company-funded defined-contribution plan, as well as a company-funded disability plan.
Freezing a plan generally means it will accept no new members and the company will not make additional contributions to the fund.
Such an offer, if airline managers agree, could help the Eagan, Minn., airline reach its goal of cutting annual labor costs by $950 million.
Shares of Northwest fell 7 cents to $7.11 on Nasdaq.
