PBGC receives Delta pilot pension termination notice

<p>The government's pension insurer said Tuesday it has received Delta Air Lines Inc.'s notice of its intention to terminate its pilots' pension plan.</p><p>The nation's third-largest carrier filed the notice by overnight mail and it was received by the Pension Benefit Guaranty Corp. on Tuesday.</p><p>A spokesman for the agency says financial disclosure documents attached to the notice will not be released to the public right away because they may need to be redacted to remove confidential information.</p><p>Atlanta-based Delta filed for bankruptcy protection last September.</p><p>Once the pilots' pension is terminated, the PBGC will be responsible for paying out benefits to the 6,000 pilots, who will receive a reduced amount compared to what they were entitled under the airline's pension plan. The notice to the PBGC listed 13,284 fully vested active pilot participants and retirees or beneficiaries currently receiving benefits.</p><p>Delta is seeking to terminate the pilot plan effective Sept. 2. A bankruptcy court judge would have to approve the request. The airline still hopes to save its other employees' pension plans.</p><p>Together with compensation the company has promised the pilots upon cancellation of the pension plan and distribution of existing funds in the plan, Delta pilots who retire at the mandatory age 60 could get about $61,000 a year, while those who retire before 53 could get about $53,000, according to a chart provided by Delta that was cited in a May 24 court filing by the PBGC.</p><p>The PBGC said in the filing it disagrees with Delta's estimates. A spokesman for the agency has suggested the actual amount will be lower. The agency says it will not know the actual amount pilots could receive until after Delta emerges from bankruptcy.</p>