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WASHINGTON — The pilots union for US Airways filed suit Wednesday against the federal government's pension agency, claiming it is not doing enough to investigate charges that the airline's pension plan was mismanaged.
The U.S. Airline Pilots Association wants the Pension Benefit Guaranty Corp. removed as trustee for the plan and replaced with someone who will actively pursue charges of misconduct.
A complaint filed in U.S. District Court says the pension plan was almost fully funded in 2000. But the plan lost about $2.1 billion over the next two years and the airline sought bankruptcy protection.
A bankruptcy court later terminated the plan.
Union officials say the massive losses were unusually high and claim they have uncovered "questionable circumstances" showing the assets may have been improperly invested.
"Our request to the PBGC for a thorough investigation has fallen on deaf ears," said union president Mike Cleary.
The PBGC, which insures the retirement benefits of 44 million Americans, took over control what was left of the pilots' pension plan in 2003. Retiring pilots now stand to get only a tiny fraction of the benefits they were expecting.
A PBGC spokesman had no immediate comment.
Earlier this year, the US Airways pilot celebrated for making a successful emergency landing on the Hudson River in New York testified in Congress about the financial plight of his company's pilots.
"My pay has been cut 40 percent," Chesley "Sully" Sullenberger III told lawmakers. "My pension, like most airline pensions, has been terminated and replaced by a PBGC guarantee worth only pennies on the dollar."
Agency officials have said they are still in the process of investigating claims of impropriety. But union officials contend the agency is moving too slowly and complain their requests for a status report have been denied.
If any misconduct is discovered, union members beleive they might have a chance to recoup some of the lost money through legal actions and possibly restore the pension fund.
A group of retired US Airways pilots has separately alleged that money was improperly taken out of the pilot's pension plan to help prop up other employee pension plans.
US Airways spokesman Morgan Durrant said the company does not comment on pending litigation.
