Rules aimed at protecting fliers

PHILADELPHIA » Sweeping pro-consumer passenger rights rules go into effect Aug. 23 that require airlines to refund baggage fees for lost checked luggage and to pay more for bumping passengers involuntarily on overbooked flights.

The rules, designed to protect airline consumers from unfair and deceptive practices, also extend fines to foreign carriers flying in the United States and to international flights by U.S. airlines if passengers are stuck on airport tarmacs for more than four hours.

The new requirements have been praised by passenger rights advocates but criticized by the airline industry for adding costs and challenges that could lead to higher ticket prices and more cancellations.

Spirit Airlines Inc. and Allegiant Air, joined by Southwest Airlines Co., are challenging one or more of the provisions, including a requirement that advertised fares include all government taxes and fees.

Airlines previously could list taxes and some passenger fees separately from an advertised fare as long as they were prominently footnoted or linked.

Hybrid retirement plan called saver

SACRAMENTO, Calif. » A study released Friday by a pension reform group suggests California’s state and local governments could save billions of dollars a year with a hybrid retirement plan similar to one used by the federal government.

The study by the California Foundation for Fiscal Responsibility found the savings could be even greater if public employees who take early retirement contributed up to half the cost of their retiree health care premiums.

The authors looked at potential savings if state and local governments reduced guaranteed pension benefits by half and replaced them with a system similar to the 401(k)s prevalent in the private sector.