Originally Posted by
Pineapple Guy
Bill, our DC plan costs DAL more money on an annual basis than the DB ever did. Because the DB took advantage of market returns which ultimately resulted in minimal required contributions. Once those market returns dried up, they terminated the pension. It was destined to fail, but few realized it. The lump sum provision and run on the bank by the senior guys just guaranteed it.
I'm curious- The market had gone through a crappy time many times in the past... how did the DB survive then?