Misc - HL 180 (4)

From: Denis Waldron <denisw@windstream.net>
Date: August 22, 2013, 3:34:12 PM CDT
To: marksztanyo
Subject: Obamacare jumping Delta Health Care costs

Bombshell: 

Delta Air Lines: Next Year, Our Health Care Costs Will Increase By 'Nearly $100 Million'

http://www.forbes.com/sites/theapothecary/2013/08/22/delta-air-lines-next-year-our-health-care-costs-will-increase-by-nearly-100-million/?partner=yahootix

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Rob Kight’s defense of Delta’s retirement funding for existing plans.

From: Yorkieatl@aol.com
Date: August 22, 2013, 4:49:03 PM CDT
To: yorkieatl@aol.com
Subject: DL response to NLRN

DELTANET/ EMPLOYEE CONNECTION

 

Rob Kight Response to National Retiree Legislative Network Message

August 21, 2013

Recently, Mr. Bill Kadereit, the President of an organization called the National Retiree Legislative Network (NLRN), sent an email to his organization’s members in which he made a number of claims regarding the funding level of the Delta Retirement Plan (DRP) and Delta’s planned contributions to the plan. As far as we know, Mr. Kadereit made no attempt to contact Delta prior to publishing his email, which contained many misleading and erroneous statements. We have heard from several retirees who alerted Delta that they believed the statements in the email were not credible. Still, we heard from others who shared that Mr. Kadereit’s email raised questions about Delta’s commitment to funding the plan. Although Mr. Kadereit subsequently corrected some of the most obvious inaccuracies (e.g. the merger was between Delta and Northwest, not Continental!) through a follow-up email, he has, to our knowledge, failed to correct others. We want to set the record straight.

Delta remains committed to maintaining and funding our frozen pension plans and paying the full benefits earned. As most of you are well aware, many airlines, including both Delta and Northwest, endured bankruptcy and a crisis of survival during the mid 2000s. Other airlines facing the same uncertainties terminated all their defined benefit pension plans during their bankruptcies. Delta and Northwest went another route. Although forced to terminate the Delta pilot pension plan because of its unique lump sum feature, Delta and its employees and retirees, along with the employees and retirees of Northwest, fought tirelessly to pass legislation that allowed Delta and Northwest to save our defined benefit plans.

The result was the alternative funding schedule allowed for airline pension plans as part of the Pension Protection Act of 2006. This provision essentially allows us to meet our funding obligation over a 17-year time horizon rather than the standard 7-year timeframe allowed for other companies. This provision allows Delta to fully meet our obligation, but with less required contribution each year. Let us be very clear about this – without this funding relief, Delta and Northwest would have had no choice but to terminate these plans. Thus, as noted in my April 23, 2013, memo on pension funding (Read The Memo), it is not surprising that the Delta Retirement Plan’s funding level is at around 58% as of April 1, 2011. We fully expect this funded percentage to increase over time as Delta makes more contributions to the plans.

A good analogy is a 30-year versus 15-year home mortgage. Under the 30-year mortgage, your monthly payment is lower than that of a 15-year monthly mortgage payment. And, if you were to look at the balance owed at any point, the 30-year mortgage balance would be higher than under a 15-year mortgage. But, you are still responsible for the full mortgage value at the end of the loan period. The same applies to the Delta Retirement Plan. Our longer time horizon to pay means less annual contributions required, but a higher balance due (especially earlier in the payment time period). But, still, at the end of the measurement period Delta is responsible to fund the plan.

To say, as Mr. Kadereit does, that Delta is not meeting its required contributions is simply not true. One of the major errors in Mr. Kadereit’s email has to do with our plans for pension funding when he says that we plan to reduce our contributions “by 70%.” In fact, we just recently announced that in addition to the required contributions associated with this 17-year funding schedule, we are committing to roughly $1B in excess contributions over the next five years. In total, that means we will make more than $4B in contributions to our plans in the next five years. These contributions in addition to asset returns will continually increase our funded percentage throughout this time period. Mr. Kadereit inaccurately reports in his email that we plan to put in only $1B in contributions in the next five years. He left out the more than $3B in required contributions we will make to the plans in that same period.

Delta must maintain a balance when making capital investments to benefit employees, customers and shareholders. Delta’s plan will allow for the continued financial success of the company, which will allow future pension contributions in line with, or above, those required under the Pension Protection Act. The returns on these past investments are in large part what has led Delta to be able to commit to the extra $1B in funding toward its pension plan obligations.

Mr. Kadereit also confuses the amount of contributions to the Delta Retirement Plan by mixing up contribution amounts to the Delta Retirement Plan with contribution amounts to all of Delta’s defined benefit plans,including the frozen Northwest plans. He then erroneously concludes that Delta intends to decrease funding to the DRP. As noted above, that is simply not true. Further, his assertion that the PBGC would somehow declare the plan insolvent while Delta is making the required contributions (or more) is irresponsible and inaccurate. There is simply no basis for doing so. The PBGC language at the end of the annual funding notice regarding plan termination is simply a legal requirement included in all funding notices, even those that are nearly or fully funded. Although Mr. Kadereit points out that the funding level was higher in 2007 (pre-2008
market challenges), he fails to note that the funding notice for that time period contained the same language.

The key ingredients to successful pension funding will be Delta’s scheduled contributions, a fair market return on assets, and a prosperous business for all key stakeholders. We are 100% on track to do this. Thank you for your many years of contributions to this great company. 

Sincerely,

Rob Kight
Vice President - Global HR Services & Labor Relations

Read the FAQs.

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From: "Clarence Ray" <ceray2@suddenlink.net>
Date: August 21, 2013, 5:48:43 PM EDT
To: <Undisclosed-Recipient:;>
Subject: Asiana 214 Simulation.

 Outstanding simulation ! It is amazing that more were not killed in this landing. 

 

This provides a true understanding of how low the aircraft was in relation to the glide slope. Computer generations are marvelous in helping to reconstruct aircraft accidents.

 Light blue ghosted plane is where he was supposed to be.

 

 Click here: http://www.youtube.com/watch_popup?v=shF_2neUyFM&feature=share

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From: Winn <winn@darientel.net>
Date: August 27, 2013, 7:33:11 AM EDT
To: "mark@pilotcommunication.net”
Subject: Contribution reminder

Mark,

This may sound like a stupid question but I have been out of touch.
I got a contribution reminder and would like to pay up.
What do I owe and how much? Where do I send the check?
Thanks,
Winn Baker.  Aka Samuel W Baker

 

Editor: The PCN and the DP3 are separate organizations.  The DP3 sends out a message such as the one directly below to individuals as a reminder for them to stay current with their dues.  Winn, thank you for your support of both.

2013 Contribution Reminder  

 

Our records show that you have not yet made a contribution to DP3 for the 2013 dues year…………………………………………………………….

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