United selects Independent Fiduciary Services to take over pension plans

By Jeff Pines

Washington, Sept. 7 - UAL Corp., United Air Lines' parent, wants the bankruptcy court to approve its selection of Independent Fiduciary Services Inc. to replace the company's pension and welfare plan administration committee.

The committee was composed of a board member and two vice presidents. On June 28, they decided they had a conflict of interest in overseeing the pension plans for about 120,000 employees and retirees while also participating in decisions that might lead to the company skipping its payments to the pension plans.

The three members of the committee resigned their position in overseeing the plans.

The board revoked the committee's duties and responsibilities and transferred responsibility to the corporation itself. But just as the members of the committee might have had a conflict so did the corporation.

United reached an agreement with the Labor Department to select an independent fiduciary by Sept. 15.

The proposed agreement between United and Independent Fiduciary Services calls for the airline to pay the fiduciary $175,000 for the first three months and then $50,000 per month afterwards.

A Sept. 17 hearing is scheduled.

United filed for bankruptcy on Dec. 9, 2002. Its Chapter 11 case number is 02-48191.

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