Delta to dump pension plans (federal agency could take biggest hit ever)

[Roland99]

http://money.cnn.com/2006/06/16/news/companies/delta_pensions/index.htm?cnn=yes

NEW YORK (CNNMoney.com) - Delta Air Lines will move to terminate its pilot pension plans Monday, attempting to shift responsibility for the future benefits to the federal agency that guarantees such payments.

The decision, which was not unexpected, was announced in a letter from Delta CEO Gerald Grinstein to Sen. Johnny Isakson, R-Ga., Friday. Delta intends the termination of the plan to take effect Sept. 2.

...

The government agency that could be stuck with plan, the Pension Benefit Guaranty Corp., did not have an immediate comment on Friday, nor did the Air Line Pilots Association, the union that represents 6,000 pilots at Delta.

...

The PBGC said in September, after Delta filed for bankruptcy court protection, that assets in all Delta pension plans fell an estimated $10.6 billion short of the promised benefits. This shortfall could make Delta the largest hit the agency has ever had to take, if all Delta's pension plans end up with the agency. But the $10.6 billion estimate includes plans covering 91,000 active and retired flight attendants and ground workers at Delta who will not be immediately affected by Monday's termination.

[DainBramaged]

1. Mark my words, before these criminals leave the Peoples House

they will default the pensions because of "budgetary need".

America loses and the BFEE corrupt Group Of Pirates steals them blind.

[napi21]

2. Yea, they're supposed to be only asking to dump the pilot

pension plan, but believe me, they won't stop there! My son works for them as a mech, and he is visiting here this week. When I heard this tidbit this AM, I said, you can betcha they'll dump yours too! He agreed! The pilot's plan is the most expensive, and they are Union, but you can be sure they won't let the Co. dump their plan and keep the other one!!!!

[splat@14]

4. Agreed, thats how it'll come down at DL, Any airline will have to dump

theirs to stay competitive. I feel so sorry for the folks caught in the middle of this - those somewhere in their late 40s, and those already there. What a rip! The basics are that the government will honor pennies on the dollar and let the company's off with no penalty. Somebody tell me how that's right! I'm not sayin it's the government's issue, i'm sayin they should hold those responsible to their responsibility - jail and fines, not fuckin bonuses!!!

[napi21]

6. It IS the Gov't fault! I believe it was Reagan who OK'd these Co.'s

using their pension funds, although they were supposed to replace them ASAP! Prior to that authorization, Companies had to keep pension funds on deposit and UNTOUCHABLE until they were needed to pay out the retirees! The ghost of Reagan's policies will continue to haunt us till we die!!!!!

[gratuitous]

3. I smell executive bonuses!

Hoo boy, the guys in the big offices are going to be in line for some major moolah at the end of the year. Think of all those liabilities and unfunded debt that just got dumped on the American taxpayer!

By the way, the price of your ticket on Delta just jumped $50. And you have to fly through Atlanta. Even if you're going from Boston to New York.

[Bozita]

5. This shit starts with employees having the highest benefits. Hello pilots?

That's the public relations first step. After all, a lot of those pensions were over $70k ... much more than the average 'Murican makes in a year. Many will cheer.

Then we'll have a few months to mull it over.

Mechanics and then flight attendants will have their turn.

Ever shove a watermelon rind down a garbage disposal? It makes a lot of noise at first. Then you just hear the hum of the motor indicating its readiness to pulverize another chunk.

[cpamomfromtexas]

12. You're so right! Get ready, it's coming to your company next!

[krkaufman]

7. Ah, corporate socialism is a beautiful thing. n/t

[annabanana]

9. yup. . . great green piles of corporate welfare....

pile it on, boys..It's not OUR money.

[colonel odis]

8. do i want to get on a plane piloted by a guy who's just lost his pension?

no thanks.

[LeahD]

10. Your choices are narrowing.....rule out United, US Air, Delta. n/t

[truthisfreedom]

11. ultimately, the corporate welfare given to the airline industry ($20B)

after 9-11 is even larger than the corporate welfare given to the oil industry in the same period of time.

corporate welfare is bush's way of saying "go ahead, rape America, take the treasury, it's MY tax money to give away to my cronies, and i don't give a goddamn what anyone thinks."

and now this... once again, they reach into the Treasury to prop up their corporation... demonstrating just how "capitalism" today is nothing more than joining the administration's mafia, being a made man, and when you've f*cked up your life, getting propped up with money collected through the protection racket called "taxes."

[oasis]

13. Crooked corporate bastards.They are no better than Lay or Schilling. (nt)