Bankruptcy judge approves Delta termination of pilot pension plan

Bankruptcy judge approves Delta termination of pilot pension plan

[JURIST] US Bankruptcy Judge Adlai Hardin [official profile] Tuesday approved [Delta press release] a request by Delta Airlines [corporate website] to end its pension plan for pilots. Delta reached a settlement with a group of retired pilots on Monday, agreeing to pay $500,000 for fees and expenses if the group ceased its opposition to Delta's proposal to terminate the plan. In order to officially end the pension plan, Delta must still report to the Pension Benefit Guaranty Corp. [official website].

Delta filed for Chapter 11 bankruptcy protection [JURIST report: Delta materials] last year. The company filed to drop the pension plan in August, saying it had insufficient funds to cover it. The plan had offered pilots who retired half of their pension benefits in a lump sum. AP has more.