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TWA PENSION AGREEMENT REACHED WITH PBGC

 TWA PENSION AGREEMENT REACHED WITH PBGC
 MOUNT KISCO, N.Y., Oct. 29 /PRNewswire/ -- Trans World Airlines,


Inc. (TWA) announced today that its three major unions, the Air Line Pilots Association (ALPA), Independent Federation of Flight Attendants (IFFA) and the International Association of Machinists (IAM), signed an agreement this morning with the Pension Benefit Guaranty Corporation and the TWA Creditors' Committee. This agreement releases TWA from the underfunded pension liability and facilitates TWA's ability to submit a plan of reorganization to emerge from bankruptcy.
 TWA has agreed to reduce a portion of the underfunded pension liability by payment of $300 million (amortized over 15 years). Amounts recovered from Carl C. Icahn by the PBGC will be treated as plan assets, allowing for payment of benefits in excess of PBGC guarantees.
 Under the new agreement, the underfunded retirement plans will be terminated and all employees will participate in new defined contribution plans providing future benefit accruals.
 The PBGC also approved the company-wide Early Retirement Incentive Program, allowing senior employees to early retire with a lump sum distribution from their respective retirement plan.
 -0- 10/29/92
 /CONTACT: Don Fleming of TWA, 914-242-3760/ CO: Trans World Airlines, Inc. ST: New York IN: AIR SU:


KD-AH -- NY105 -- 6848 10/29/92 17:48 EST
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Publication:PR Newswire
Date:Oct 29, 1992
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