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.
Total BS. NWA pensions were the same as Delta's except for one thing. NWA pilots pension didn't have the lump sum option. The same drying up of market returns happened to the NWA pension, yet we were able to save ours due to the freeze. When the senior Delta guys took most of the money out at once due to their lump sum rights...THAT'S what ruined the pension.
Carl