Retiring Delta pilots may not receive lump sum pension benefits - claim

Airline Industry Information, Sept 22, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Future lump sum payments to retired Delta Air Lines pilots may be at risk, according to the airline's pilots' union.

According to the union, the pension plan has been drained to a point where it may not be possible to pay a lump sum for pilots considering retirement on or after 1 October. John Malone, the chairman of the union's executive committee, has said that part of the reason is that a large number of pilots have retired over the last 21 months. Many of these reportedly retired early, including 202 pilots retiring on 1 September, while over 2,300 have submitted papers to that effect since January 2003.

While the normal retirement age is 60, senior pilots who have enough years of employment are able to retire at 50, The Associated Press reported. Retiring pilots can elect to have half of the pension benefits as a lump sum of money and take the rest as an annuity later on.

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