From: evan gost
Date: 9/23/2012 10:14:18 PM
To: Mark Sztanyo
Subject: Comment
for PCN
Mark-
In response to Denis Waldron's comments in PCN-141, please publish the following:
Hi Denis-
I appreciate your comments, but need to correct your PCN-141 communication.
You indicated that the bankruptcy court approved the provision that Delta must reimburse the D&S Plan for expenditures relating to disability and life insurance for former Northwest pilots. Such is not the case. Delta emerged from bankruptcy on April 30, 2007. The Joint Collective Bargaining Agreement which unified the Delta and Northwest contracts was ratified on April 11, 2008, almost a year after Delta's emergence from bankruptcy. The ninth amendment to the D&S Plan, which contains the reimbursement provision, was not signed until Oct 29, 2008.
In response to Denis Waldron's comments in PCN-141, please publish the following:
Hi Denis-
I appreciate your comments, but need to correct your PCN-141 communication.
You indicated that the bankruptcy court approved the provision that Delta must reimburse the D&S Plan for expenditures relating to disability and life insurance for former Northwest pilots. Such is not the case. Delta emerged from bankruptcy on April 30, 2007. The Joint Collective Bargaining Agreement which unified the Delta and Northwest contracts was ratified on April 11, 2008, almost a year after Delta's emergence from bankruptcy. The ninth amendment to the D&S Plan, which contains the reimbursement provision, was not signed until Oct 29, 2008.
The Northwest pilots did in fact have a disability plan, but
my understanding is that it was funded on a pay as you go basis. Bringing
Northwest pilots into the D&S Plan certainly increased Plan expenditures
for disability benefits and life insurance. Without the reimbursement
provision, it could have been perceived as another method of draining the
assets of the D&S Trust. The bottom line is that ALPA was involved in
negotiating that important reimbursement provision and retaining it in the
recently negotiated contract. For that effort, ALPA deserves credit.
As you probably know, each year I review the form 5500 and financial notes filed by Delta relating to the D&S Plan. I certainly agree with you that the current funding level of the D&S Plan is disturbing and that the unreimbursed bleeding of approximately $240 million of D&S Plan assets to pay for pilot sick leave seriously impacted the funding level.
If you want to have further dialog about the D&S Plan (and ways to protect the Plan), send me an email at egost@hotmail.com.
Ev
As you probably know, each year I review the form 5500 and financial notes filed by Delta relating to the D&S Plan. I certainly agree with you that the current funding level of the D&S Plan is disturbing and that the unreimbursed bleeding of approximately $240 million of D&S Plan assets to pay for pilot sick leave seriously impacted the funding level.
If you want to have further dialog about the D&S Plan (and ways to protect the Plan), send me an email at egost@hotmail.com.
Ev
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