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.
With our lower pay rates, I bet the company doesn't mind the higher DC costs. Many North guys have a frozen pension, or may have just started the DC plan. We are still a bargain, and if the Airtran guys can get Southwest wages, we should too. New fees and synergies could help with that.