Hawaiian Telecom says pension fund is underfunded
HONOLULU—Hawaiian Telecom, which filed for bankruptcy protection last month, says its pension fund is underfunded.
Three years ago, the fund was overfunded by $280 million. But then-owner Verizon Communications Inc. took that excess when it sold Hawaiian Telecom to the Washington D.C.-based Carlyle Group. The remaining fund has been hit hard by a declining stock market.
Now the company says it can no longer provide lump-sum payments to retirees and may instead have to issue monthly checks over a long period of time.
Scot Long, business manager for the International Brotherhood of Electrical Workers, Local 1357, says his members are deflated.
The situation could lead to higher rates for residential and business customers.