Delta, Northwest pensions get federal scrutiny

The Pension Benefit Guaranty Corp. is doing an assessment of Delta Air Lines and Northwest Airlines to determine whether their merger will have an impact on their ability to fund their pension plans.

The federal agency has been in contact with both airlines for the assessment, which is ongoing, according to Michael Rae, a PBGC representative speaking to the Delta Air Lines Retirement Committee’s annual meeting Friday.

In a letter to Delta retirees Thursday, Delta President Ed Bastian said the combined Delta will have a larger revenue stream to fund both carriers’ pension plans.

Some retirees disagree on what tactics to use with the company as the relationship with the retirement committee has become more adversarial.

Meanwhile, U.S. Sens. Johnny Isakson and Saxby Chambliss on Thursday sent a letter to Delta chief executive Richard Anderson and Lee Moak, chairman of the Air Line Pilots Association at Delta, urging them to reconsider a decision by Delta to turn down a proposal from the retired Delta pilots seeking a voluntary contribution from Delta to the PBGC for their pensions.

The Delta Pilots’ Pension Preservation Organization noted in the proposal that Delta terminated its pilot pension plan but would be assuming Northwest pension plans in the proposed merger of the two carriers. In a written statement, Delta said the proposal “is not feasible and is unrelated to Delta’s merger with Northwest.”