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Delta NOT to make pension payment to pilots...

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AMRCostUnit

Back on the 737
Joined
Jun 12, 2004
Posts
274
This deserves its own thread...the other DAL thread should read:
"Grinstien will be OK, Delta...well...


Thu Sep 15, 2005 5:43 PM ET
NEW YORK (Reuters) - Delta Air Lines Inc. (DAL.N: Quote, Profile,
Research) will send a letter to some 3,500 retired pilots informing them
of its inability to make their October pension payments, Delta lawyer
Marshall Huebner said in a hearing on Thursday.

The letters saying there is a good chance the October payments will not go
out will only be sent to pilots above a certain salary level, Huebner said
during the hearing in U.S. Bankruptcy Court in Manhattan.
 
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Yes, the letter from GG says the non-qualified pension is a "...pre-petition obligation..." which they are now "...barred by law..." from paying without approval of the BK court. Well, from what I read, DL didn't ask the court to continue the NQ payments but rather actively sought the court's approval for STOPPING those payments. If the court's approval of NQ payments was needed, it doesn't appear they sought that but rather the opposite.

I would guess this is just the opening salvo. Next will come distress termination of the entire DB plan, the survivors & disability plan, followed by stopping health insurance access for retirees. That should pretty much dispense with those pesky retirees.

Like the EAL guys said, "what goes around comes around"...and here it is.
 
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Well, He11, why don't they just stop paying all "salaries below a certain level". . . .
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bafanguy said:
Like the EAL guys said, "what goes around comes around"...and here it is.

Funny how similar that quote is to Delta's motto "Good Goes Around".
 
Date: September 14, 2005 To: All Delta Employees From: Jerry Grinstein, Chief Executive Officer Subject: Delta's Financial Reorganization Under Chapter 11


"Understandably, in view of our circumstances, people also are concerned about their pensions. Delta has been doing everything it can, within the bounds of what it can afford, to continue to provide its active and retired Delta people with already earned qualified retirement plan benefits. Given our financial situation and the need to preserve as much cash as possible for our operations, we do not plan to make the qualified defined benefit pension funding contributions soon due. Neither filing for Chapter 11 nor missing contributions means that our qualified plans stop paying monthly retirement benefits or that we have initiated the process to terminate the plans. Nor does either action mean we have stopped pursuing pension reform legislation that might make the pension plans more affordable."
 
FDJ2,

Yes, I was thrown by that statement also, but you apparently have to look at each word individually and read between those words. He used the term "...qualified plans...". They don't consider what they took away part of the "qualified" DB. But I believe it is part of the DB plan as covered in the PWA. I don't have a copy of the contract anymore.

This is gonna be ugly...
 
bafanguy said:
FDJ2,

Yes, I was thrown by that statement also, but you apparently have to look at each word individually and read between those words. He used the term "...qualified plans...". They don't consider what they took away part of the "qualified" DB. But I believe it is part of the DB plan as covered in the PWA. I don't have a copy of the contract anymore.

This is gonna be ugly...

Bafanguy, you are correct Sir.
 
On the 15th, the PBGC released a statement reiterating the fact that filing BK does NOT relieve DL or NWA of their obligations to make required funding contributions into their DB plans. DL has said they are not going to make those contributions. Of course, if you already know there won't be a DB plan shortly anyway, why bother ?


Start saving your money, Bro's & Sis's.
 
2500 senior pilots left with half of their pensions in a lump sum. This stopping of payments is pressure for Congress to give LONG term help, or they will dump it. Delta needs to conserve some cash, and they may do this for awhile. If in the end they need to dump it entirely, that is the way it goes IMO. We need to move forward again smoothly someday.


Bye Bye--General Lee
 
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