Originally Posted by
nene
This was actually what happened to Delta pensions in 2000. Stocks up so Feds said no contributions to pensions. Delta actually petitioned the IRS to make rainy day contributions and irs said NO. Pay taxes greedy rich corp. well a few short years later pension was seriously underfunded.
The other huge irony is that some at NWA saw the pinch points and tried to bring it to the attention of the Company. The idea was to diversify the pension and move to a hybrid A/B fund setup.
Company, aided by some who didn’t want the change, said that things are fine, the pension is self funding and DC money was too expensive.
Set up correctly, DBs are great for everyone…until they’re not.