From: Denis Waldron
Date: 8/17/2012 3:46:33 PM
To: Mark Sztanyo
Subject:
Response to DDPSA pleased with ALPA
My take on the recent announcement that
the Disability and Survivorship Fund will no longer be charged $60 million a
year for active pilot vacation and sick leave is a little different. From the
DDPSA website: "During bankruptcy proceedings Delta and ALPA negotiated
Letter of Agreement #51 which included the following change to the D&S
Plan: Beginning in 2011, if the assets of the D&S Trust fell below $1.2
billion, Delta would be required to make contributions to the trust in the
amount of 4% of Free Cash Flow, but not to exceed $60 million annually."
We don't know if Delta made a cash distribution in 2012 - they don't have to
tell us yet, but they took out the $60 million every year since bankruptcy
which works out to be close to a quarter billion dollars they raided, and they
had to put some back in during 2011 when the Fund crashed well below $1.2
billion in 2010. The recent change appears to be a no cost item since this was
posted on the DDPSA website in May under "news" http://www.ddpsa.com/news.htm: "as of June 30, 2011, the D&S Plan had Assets
valued at $1,109,694,000", and Delta now has to continue to put
back what they take out. Sounds to me like all the damage Delta could do has
been done, so they simply shut the barn door after all the horses were out. If
my understanding is hopefully wrong, I am open to correction.
Here is the scary part : "as of June 30, 2011, the assets available to pay benefits equaled approximately 61.4% of the Plan Benefit Obligations". This is below where the Delta, ALPA, and the PBGC claimed our Retirement Fund was and they all made out under a distress termination. Note the D & S Fund assets are down nearly $400 million from 2009, which also had this: "Several years ago, the assets of the D&S Trust exceeded all Plan Benefit Obligations. As of June 30, 2009, plan obligations exceed plan assets by over $575 million. It is difficult to project when the assets of the D&S Trust will be depleted; however, it is readily apparent that disability and survivorship benefits under the D&S Plan are far less secure than they were several years ago."
While those retirees covered by the Disability Plan like Ev Gost and Jim Haigh congratulate Delta and ALPA since they have not yet lost anything through bankruptcy (at least until the D & S Fund is depleted); I lost a third of my earned pension, so am not as congratulatory. I take a little solace that my wife may get back the lost earned annuity if I die - until the Delta raided D & S Fund is depleted.
Here is the scary part : "as of June 30, 2011, the assets available to pay benefits equaled approximately 61.4% of the Plan Benefit Obligations". This is below where the Delta, ALPA, and the PBGC claimed our Retirement Fund was and they all made out under a distress termination. Note the D & S Fund assets are down nearly $400 million from 2009, which also had this: "Several years ago, the assets of the D&S Trust exceeded all Plan Benefit Obligations. As of June 30, 2009, plan obligations exceed plan assets by over $575 million. It is difficult to project when the assets of the D&S Trust will be depleted; however, it is readily apparent that disability and survivorship benefits under the D&S Plan are far less secure than they were several years ago."
While those retirees covered by the Disability Plan like Ev Gost and Jim Haigh congratulate Delta and ALPA since they have not yet lost anything through bankruptcy (at least until the D & S Fund is depleted); I lost a third of my earned pension, so am not as congratulatory. I take a little solace that my wife may get back the lost earned annuity if I die - until the Delta raided D & S Fund is depleted.
Subject:
My P.S.
Please add a P.S. to my earlier email:
I appreciate what Ev Gost and Jim Haigh have done for retired pilots through DP3 and DDPSA.
Please add a P.S. to my earlier email:
I appreciate what Ev Gost and Jim Haigh have done for retired pilots through DP3 and DDPSA.
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