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Compliance February 11, 2001
Pan Am Pensioners Prevail In PBGC Action
November 2, 2001 (PLANSPONSOR.com) -The Second US
Court of Appeals has cleared the way for the Association of
Former Pan Am Employees (AFPAE) to bring suit against the
Pension Benefits Guaranty Corporation (PBGC) as the trustee
of the late Pan American World Airways five pension
plans.
Reported by editors@plansponsor.com
The court dismissed the PBGC’s third appeal of federal
Judge Loretta Preska’s decision for lack of appellate
jurisdiction, ordering that the case be remanded back to
the Circuit Court for Discovery and trial.
The AFPAE has been fighting for their pensions for over 10 years now, since Pan Am went out of business in 1991 ? arguing that the PBGC cannot be both the trustee and insurer of the pension plans.
The AFPAE takes the view that the dual roles translate
to a conflict of interests – a fiduciary must act in the
sole interest of the plan participants while an insurance
company must act in the interests of the bottom line.
– Camilla Klein editors@plansponsor.com
see also Playing A New Role