Air Canada Sees $1.6B PF Contributions

Montreal-based Air Canada is facing $1.6 billion in pension funding contributions over the next four years, The Globe and Mail reports. The country’s largest carrier estimates the contributions of $320 million for this year in past and current service contributions, followed by further funding obligations of $359 million next year, $412 million in 2013 and $550 million in 2014.

The airline, which has about $13 billion of pension liabilities, has proposed placing new hires on defined-contribution (DC) plans, which do not provide a guaranteed level of payout upon retirement. Air Canada’s unions, including Canadian Auto Workers union and the International Association of Machinists, are opposing its plans to launch DC plans for new hires.

Click here for the story from The Globe and Mail.