There has been a recent topic shared on various news media outlets regarding Frontier and them delaying $153 million in pension contributions. I wanted to share some insight into this so we can all understand it better.
The Coronavirus Aid, Relief and Economic Security Act, signed by President Donald Trump on March 27, provides companies the option of a one-year holiday from making 2020 pension contributions, with interest accrued, until Jan. 1, 2021. Normally Frontier would make these contributions quarterly, however, The Coronavirus Aid, Relief and Economic Security Act now allows them to pay the pension contribution (including interest) all at once by December 31, 2020. This payment will be credited to the plan year 2020.
This change DOES NOT have any impact on our pension plan, we will continue to receive the same monthly pension credits and interest deposited into our Milliman accounts. As we have stated prior, the only change to the pension plan while Frontier is in Chapter 11 bankruptcy is that Lump Sum payments cannot be paid out.
Frontiers pension plan is currently funded at 89.65%.
If you have any questions, please contact Secretary- Treasurer Louise Gibson at email@example.com or 203 230-5703