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Northwest Considers Freezing Pension Plan

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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.

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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.

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