Bankrupt Westinghouse Electric Co LLC, the U.S. nuclear technology firm owned by Toshiba Corp., has stopped making pension payments to former executives, Reuters reported yesterday. The move comes as the company scrambles for cash and works to extract itself from two U.S. power plant projects, the first new nuclear plants in three decades, which are years behind schedule and billions of dollars over budget. Westinghouse spokeswoman Sarah Cassella said in a statement that in chapter 11 bankruptcy, the company is not permitted to make pension payments to retired executives because it is a non-qualified plan. Unlike "qualified" plans for rank-and-file workers that are funded from money set aside in a trust, Westinghouse's executives receive their payments from the company's ongoing operations. The plan covers around 75 former managers, according to a court filing by Ronald Gellert, a Delaware lawyer who was hired to represent the plan participants. It includes retired senior vice presidents, directors, regional presidents and at least two former chief executives.
