I viewed the R&I presentation online and there wasn't specific reference to excess DPSP cash being put into the "Modern DB" plan. It only said that it was a "Market Based Cash Balance Plan" (MBCBP) that was funded by company contributions.
IMHO redirecting DPSP cash anywhere but the pilots paycheck is the kiss of death on any of these plans. The first step in retirement improvement should be a bump up to 20%, so we hit the 415C limit with company contributions. The second step could include a qualified DB plan like the MBCBP, that is funded with company money, not redirected DPSP cash. That money should be invested in a mix of S&P Index and Total Market Index, with management fees equal to a similar fund at Fidelity or Vanugard (i.e. low). The historical return of those assets with fees included is closer to 8.5%
The fact that 2/3 of the pilot group receive DPSP cash makes us a huge target for a number of financial services firms looking to come in and with one "sale" gain control of millions of dollars. In return for managing that money, they will target a return that is about 60% of what an S&P index fund returns. It sounds to me like someone is trying to get 40% of our money through substandard returns. How is that different than losing 40% to taxes?