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.
Very astute!
80 kts, because:
(1) Margins were better, lots better
(2) Those at the top had integrity and understood market variation was no reason to short change a promised obligation
(3) There were fewer people obtaining payouts and what eventually became an unsustainable pyramid scheme was still in its misunderstood infancy. If Delta had continued organic growth, it would have been easy to pay.