Think your company pension is safe? Delta is about to dump theirs

[Roland99]

http://money.cnn.com/2006/06/16/news/companies/delta_pensions/index.htm?cnn=yes

NEW YORK (CNNMoney.com) - Delta Air Lines will move to terminate its pilot pension plans Monday, attempting to shift responsibility for the future benefits to the federal agency that guarantees such payments.

The decision, which was not unexpected, was announced in a letter from Delta CEO Gerald Grinstein to Sen. Johnny Isakson, R-Ga., Friday. Delta intends the termination of the plan to take effect Sept. 2.

...

The government agency that could be stuck with plan, the Pension Benefit Guaranty Corp., did not have an immediate comment on Friday, nor did the Air Line Pilots Association, the union that represents 6,000 pilots at Delta.

...

The PBGC said in September, after Delta filed for bankruptcy court protection, that assets in all Delta pension plans fell an estimated $10.6 billion short of the promised benefits. This shortfall could make Delta the largest hit the agency has ever had to take, if all Delta's pension plans end up with the agency. But the $10.6 billion estimate includes plans covering 91,000 active and retired flight attendants and ground workers at Delta who will not be immediately affected by Monday's termination.

And isn't the PBGC already several billion in the hole?

[Kagemusha]

1. This has been coming for quite a long time...

It's not some bolt out of the blue here. That's not to say it's good. It's emphatically not, but this is not some surprise at all...

[bullwinkle428]

2. My employer just made the decision to freeze their pension plan and

close it to new hires yesterday...they're considering terminating the plan within the next 18 months.

[Roland99]

3. But, but, but, the economy is on fire! The Stock Markets are rocketing up!

:eyes:

[Sadie5]

4. I can't believe what has happened to my country

You can no longer depend on the pension you worked so hard for , for many years. Nor can you depend on Social Security. Do they expect people to starve to death especially when insurance benefits have been cut to the bone.

[Rosemary2205]

5. Ford and GM are next (nt)

[lonestarnot]

6. Yes it's safe LOL, I don't have one.

They can't fucking steal what you don't have. Bastards.

[BuyingThyme]

7. Another great opportunity for Reid and Polosi...

to say nothing thereby sabotaging my party.

It's time for real leaders.