Originally Posted by
OldFlyGuy
Here is my confusion with this series of posts: Are we saying the company used to spend 35% of our gross to fund the DB? I need an R&I expert here, but I gotta think that is waay high. Greater than 15% yes, but 35%?? Need expert input, not Forumnomics. OFG
No, the 'funding' for our DB plan varied year to year, based on what it had earned in the market. In up years, when the fund increased by more than 6% (?) the company didn't have to make ANY contributions at all! NOTHING! There was as period in the mid 90's I think when the company made ZERO contributions for about 5 years straight, due to the market runup. But when it tanked after 9-11, the bill came due.
In down years, the company had to make contributions to bring the fund up to that 6% line, which could cost them a bundle depending on how little the fund had earned (or how much it lost) in the market.
I'm no R+I expert, perhaps there's one here who can give all the gory details, but the company absolutely saved Billions by flushing our DB plan and putting us on a DC plan.
Today, one of Delta's biggest outstanding debts (in the Billions) is the funding of the frozen NW DB plans.