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DAL Pensions

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a320drivr

Well-known member
Joined
Nov 27, 2002
Posts
385
Bankruptcy judge says Delta doesn't have to pay retirees

Lisa Treon
10/19/2005​
Delta Air Lines Inc. will not be required to make a payment of about $160 million payment to a pension plan for pilots and can also skip about $7 million per month in direct payments to retirees.
U.S. Bankruptcy Judge Prudence Carter Beatty shot down arguments from attorneys for retired pilots and the Air Line Pilots Association, which said she should force Delta to make the pension payments or start proceedings to change or cancel its collective bargaining agreement with ALPA.
Delta didn't make the $160 million payment to its "qualified" pension plan due over the weekend, only paying $417,000 for work done by pilots since the airline filed for Chapter 11 last month. The company has been adamant that any claims originating for work done before it filed Chapter 11, such as that by retirees, must be prioritized by the bankruptcy court with all the other claims against Delta.
 
a320drivr said:
Bankruptcy judge says Delta doesn't have to pay retirees

Lisa Treon​
10/19/2005
Delta Air Lines Inc. will not be required to make a payment of about $160 million payment to a pension plan for pilots and can also skip about $7 million per month in direct payments to retirees.
U.S. Bankruptcy Judge Prudence Carter Beatty shot down arguments from attorneys for retired pilots and the Air Line Pilots Association, which said she should force Delta to make the pension payments or start proceedings to change or cancel its collective bargaining agreement with ALPA.
Delta didn't make the $160 million payment to its "qualified" pension plan due over the weekend, only paying $417,000 for work done by pilots since the airline filed for Chapter 11 last month. The company has been adamant that any claims originating for work done before it filed Chapter 11, such as that by retirees, must be prioritized by the bankruptcy court with all the other claims against Delta.

Not exactly the whole story and while I think getting any pension money of of the BK/Delta debacle is slim to none there is another side to what you have posted. Don't know how to get the information over here for viewing but if you look at Jim Gray's statement at DP3.org, you will see that the fat lady is still singing for the moment at least.
 
This was expected. DL had a large payment coming up ($160 million) and they didn't want to pay it. Most of our recently departed pilots took half of their pension in a lump sum and ran, since they knew that this could happen. The NW guys did not have this option because they did not put it in their last contract.


Bye Bye--General Lee
 
General Lee said:
This was expected. DL had a large payment coming up ($160 million) and they didn't want to pay it. Most of our recently departed pilots took half of their pension in a lump sum and ran, since they knew that this could happen. The NW guys did not have this option because they did not put it in their last contract.


Bye Bye--General Lee

Under the circumstances, i.e., being eligable for retirement, 50 & 25, one would have to be a fool not to leave. To bad it created such havoc with the bottom line but one has to watch out for himself and family in a case like this.
 
Strange. Delta has been BR just over 1 month and they've gotten to the point where they are no longer sending retirement checks? UAL has just gotten to the point where this might be a reality as well, almost 3 years into their bankruptcy. I have a retired UAL pilot friend who hasn't missed a check up to now. Why the difference? It can't be corporate goodwill on the part of UAL. Why didn't they stop their retirement checks in Jan 03? (not that I would want that for anyone, just curious).
 
Surprise surprise

Meanwhile in other news....."10 Delta executives will receive $5 million 'talent' retention bonuses"

I would love to meet one of these schmucks in a dark alley one day.
 
AdlerDriver said:
Why the difference? It can't be corporate goodwill on the part of UAL. Why didn't they stop their retirement checks in Jan 03? (not that I would want that for anyone, just curious).

The difference is simple. Managements job is not to run a company, they've proven they cannot! Their job is to break the backs of labor! So far, that's the only thing they have achieved!
737
 
AdlerDriver said:
Strange. Delta has been BR just over 1 month and they've gotten to the point where they are no longer sending retirement checks? UAL has just gotten to the point where this might be a reality as well, almost 3 years into their bankruptcy. I have a retired UAL pilot friend who hasn't missed a check up to now. Why the difference? It can't be corporate goodwill on the part of UAL. Why didn't they stop their retirement checks in Jan 03? (not that I would want that for anyone, just curious).

Again if you go to the DP3.org web site that information is presented. To much leagaize for my small brain. Bottom line is we got screwed by that wonderful Delta family.

It would appear that ALPA needs to step up to this issue as they are the legal representitives for the PWA. Again, I don't expect squat from ALPA or the poor souls left over at Delta as they have more than enough problems facing them to worry about talking care of former Delta pilots who they seem to hold in contempt for the situation they find them selves in. A lot of anger with no where expend it I am afraid.
 

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