I wish to
include something that Capt Bruce Cohen sent and brought to our attention.
Bruce brought up a PBGC change of the “game rules” after the game had
started. Now, this new revelation caught
out eye and at first appeared it had some relevance to our situation. Sadly, after reaching out to our guys and
experts, formerly from the DP3, they pointed out that the ‘game changer’ would
not be applicable to our situation. I am
sharing all of this because some of you may have read up and had been wondering
about this very issue. Also, to show
just what someone concerned and caring, like Capt Cohen, can set in
motion. AND, even though this new turn
of events with the PBGC is not applicable to Delta’s terminated Defined Benefit
Pension Plan, you never know about what may occur in the future that could
effect us. So, with that said, I appreciate what Bruce brought our way and want
to thank him for wanting to fight for fairness for his earned pension and for
our guys.
Following are emails forwarded to me from Capt Cohen:
I.
https://www.pbgc.gov/arp-sfa
II.
---------- Forwarded message ---------
From: Bruce Cohen <brew737@gmail.com>
Date: Fri, Aug 18, 2023 at 3:08 PM
Subject: Re: PBGC
To: <scott.bowles@alpa.org>
Hello Scott,
My name is Bruce J. Cohen. I VEOP'ed out in 2020...employee #683649...ALPA #069-706-0.
I am writing because of the latest information to be published by the PBGC. Under a new Biden Administration policy, more than a few Pension Plans held by the PBGC are being made whole.
Below is a short note in discussions I've entrusted with an attorney dealing with PBGC matters:
Under separate cover, I am forwarding to you just another example of the pension plan reinstatement notices that I have been receiving within the last several months.
As mentioned earlier, these policies are part of this Administration's American Rescue Plan (ARP) Act of 2021. This section of the act is called the Special Financial Assistance (SFA) Program. I'd like for me and my twelve thousand pilot friends affected by the pension termination to get in on the opportunity while still available.
The Delta Pilots' Retirement Plan was terminated circa 2006.
Please call or write at your convenience to discuss. I'll send a few of those PBGC notices along.
Thanks,
in advance, for your time. No rush on this. We've waited fifteen or so years. A
few more months won't matter much!
Best regards,
Bruce J. Cohen
My Letter asking for expert help from those within
the PCN that I know have a lot of knowledge on this matter.
Guys,
I hope your Labor
Day weekend was great. This is Mark and you know me from running the PCN
and publishing the High Life. Well, a while back I was in contact with
many of you in support of our DP3’s effort of realizing relief from the PBGC’s
draconian calculation of our pension benefits. Now, because of Capt Bruce
Cohen’s revelation, there has been a very
interesting development at the PBGC. In a word, it could be a Lost
Delta Pilot’s Pension........ GAME CHANGER?
The PBGC has
presumably come into money (American Rescue Plan Act of 2021)
Because of the windfall the PBGC has been reducing its portfolio
of those covered by PBGC’s pitiful benefits. AND THIS IS THE CRAZIEST
THING…….WHILE THIS WINDFALL EXISTS THE PBGC IS MAKING SOME OF THEIR FORMER
CLIENT’S PENSIONS WHOLE!!! You heard right. They are allowing
‘applications’ to be made for a review wherein some of the broken Defined
Benefit pensions are RESTORED TO FULL. Don’t believe me?
Well, it certainly looks like its true and in fact this could just
be our best opportunity yet to realize pension justice. But I have to
say.......I am afraid it is very time critical.
Capt Bruce Cohen,
who early ret in 2020, brought all this to my attention and I'm
asking for your help. First, take a look to see if you see this
possibility of application if it that is true, than why
couldn’t Delta Pilots apply and why couldn’t we be approved for
restoration?
I’m actually
sorry to be contacting you, because I know you are tired of all this. But
this was unexpected and has NOTHING TO DO WITH THE PBGC miscalculating
benefits. Its all about them coming into money and us helping them reduce
their portfolio. Interested? Good!!!! Check out the rest that
I have included below for you from Capt Cohen and please let’s see what we can
do to possibly take advantage of this opportunity before the door closes.
So what am I
asking you to do? Well, some of us are running a little
tired. The Fight has left us and the sword is a little heavy. But
if you muster a little righteous anger, and still care about this corporate
injustice, then here is what we can do together:
1. First,
read a little background info that was forwarded by Capt Bruce Cohen.
2. Second, after your own research, please communicate with me concerning your opinion of whether you feel there might be an opportunity here to make application to the PBGC for restoration.
3. And thirdly, please offer your advice as to what we could collectively do to acquire legal counsel and make a time critical application on behalf of our retired pilot group before the proverbial door closes. As you read, the application process is not unlimited and many other plans that were under the PBGC have already applied. So of course, if this is all possible, it’s a matter of getting on a list and getting a fair review.
I GOT
RESPONSES FROM A NUMBER OF FORMER DP3 OFFICERS BUT VERY MUCH APPRECIATED THESE
TWO REPSONSES FROM WILL BUERGEY ANS JIM GEORGE BECAUSE OF HOW THEY ARE SO
INFORMATIVE CONCERNING THE ISSUES THAT BRUCE BROUGHT UP.
I thank Will and Jim for their reply’s below:
Mark:
Thank you for bringing
this to our attention. Unfortunately, it does not appear that this program
would apply to retired Delta pilots.
The PBGC guarantees
pension benefits for two types of defined benefit pension plans, single
employer plans and multi-employer plans. Our plan was a single employer plan,
only covering Delta pilots, so this program providing Supplement Funding to multi-employer
plans would not apply to Delta’s single employer plan.
The second problem is
that these SFAs are designed to fund plans up to the point where they are able
to pay guaranteed benefits, but according to the way the PBGC calculated our
benefits, they claim that all of our members (pilots who were already retired
or eligible to retire at the time of plan termination) have already received
their guaranteed benefit in large part due to our lump sum payments. (Pension
benefits guaranteed by the PBGC are not the same as the benefits promised under
the terms of our terminated plan.)
Another issue is that
under current ERISA law the PBGC already has the authority to require a plan
provider to restore a terminated plan, but as part of their plan termination
agreement with Delta, the PBGC agreed to never require Delta to restore the
plan.
Thanks again for all
you do for the retired Delta pilots.
Will Buergey
++++
Mark,
Will has
laid this out very well. I would add one thing: I believe it was in
the Pension Reform Act of about 2006 - one which didn't really do that much in
the way of "reform" - there was a provision SPECIFIC to Delta
Airlines, I believe inserted by GA Senator Saxby Chambliss (no doubt due to
some effective Delta lobbying) - that DELTA would NOT EVER have to reassume the
pilot's pension plan. Absent this, as Will pointed out, PBGC has ALWAYS
retained the "right" to REQUIRE any (successful) company, post
bankruptcy, to reinstate (and basically resume and pay for) its pension plan which
was terminated in Bankruptcy.
However,
with this one little rather dubious provision having been written into LAW,
Delta can effectively say "Sorry, we are prohibited by LAW from ever
reinstating our terminated Pilots Pension Plan."
Thus I
have always seen these pension reinstatement efforts - well intentioned as they
are - as being nothing more than jousting at windmills. Such efforts
would have been better expended, IHMO, in pursuing something actually
attainable. E.G., how about some Positive Space Passes for retired pilots
who were so devastated and damaged by the Plan Termination?
Best Regards,
Jim George
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