Labor & Economic News Blog


Friday, January 05, 2007

Delta pilot pension plan grounded for good

Delta pilot pension plan grounded for good
The Pension Benefit Guaranty Corp. said Friday it has formally taken over the pilots' pension plan at Delta Air Lines, and it expects to be responsible for paying out close to $1 billion in benefits not covered by the plan's assets. The move was approved by Delta's bankruptcy judge and the PBGC last year. It represents the sixth-largest pension liability the PBGC has taken on in its 32-year history, the PBGC said. The quasi-federal agency said the Delta pilots' plan is under-funded by about $3 billion, with $4.7 billion in obligations and $1.7 billion in assets. But because the PBGC only guarantees workers' pension incomes up to certain limits, the agency estimated that it will be liable for about $920 million.

 



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