Termination of Delta Pension Plan Is Upheld

A federal judge Monday upheld an order approving Delta Air Lines Inc.'s request to terminate its pilots' pension plan, over the objections of 223 retired pilots.

The group of retired pilots had appealed a U.S. Bankruptcy Court judge's ruling in September that said Atlanta-based Delta had met the requirements for its distress termination of the pension plan.

Some had argued that Delta's assumption about the number of pilots who would retire early if their lump-sum pension payment option was restored was flawed. They also argued that Delta had not explored other ways to reduce the number of early retirees before seeking termination of the pension plan. But U.S. District Judge Denise Cote said in her ruling that Delta met its burden of proving that the pension termination was necessary as part of its effort to emerge from bankruptcy.

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