LONG TERM DISABILITY BENEFITS

Long Term Disability (LTD) benefits are paid from the Delta Pilots Disability and Survivorship (D&S) Plan which is defined as a Welfare Benefit Plan rather than a Pension Plan. The LTD benefit is calculated as 50% of the average of the highest 12 consecutive months of earnings out of the last 36 months of earnings. One-half of the LTD benefit has a variable feature which can increase the benefit over time. For an explanation of the variable benefit click here; for a table of Variable Benefit Unit values, click here. LTD benefits of pilots who were removed from the Delta seniority list on or before June 1, 2006, generally continue for the pilot's lifetime, but are offset (reduced) by Delta retirement benefits. For an explanation of the offset to LTD benefits, click here.

The LTD benefit of pilots who remained on the Delta seniority list after June 1, 2006 cease when the pilot reaches the FAA mandatory retirement age, but such pilots receive significant contributions to their retirement account.

WHO SHOULD SUPPORT DDPSA

Long Term Disabled (LTD) pilots who no longer were on the Delta Pilots Seniority List after June 1, 2006, should be ardent supporters of DDPSA. Without the concerted efforts of several individuals, the financial position of such disabled pilots probably would be much more bleak today. Retired Delta pilots, whose eligible family members may be entitled to survivor benefits under the D&S Plan, as well as survivors who currently are receiving D&S Plan benefits also should have an interest in supporting DDPSA.

INITIAL SUCCESS

The initial challenge arose when Delta declared bankruptcy in September 2005 and immediately ceased paying non-qualified retirement benefits. Because Delta retirement benefits serve as a dollar for dollar offset against LTD benefits, the question arose whether or not lost retirement benefits could still be an appropriate offset to LTD benefits. Delta initially continued to reduce LTD benefits by what later was termed to be a "phantom offset." Several months later, Delta conceded that the lost non-qualified retirement benefits were not appropriate offsets to LTD benefits. Consequently, LTD benefits were restored retrospectively and corrected prospectively.

SUCCESS IN BANKRUPTCY

During the bankruptcy proceedings, Delta and ALPA negotiated Letter of Agreement (LOA) #51. Surprisingly, LOA #51 contained provisions that proposed to alter the benefits of disabled pilots who already had retired. LOA #51 defined the offset to LTD benefits as the amount that disabled pilots should have received if the retirement plan had not been terminated. This provision was defined as being applicable to all pilots receiving disability benefits regardless of their date of retirement. LOA #51 also included a provision under which pilots receiving disability benefits (even retired pilots) would be subjected to continuing re-certification of their disability status. Fortunately, the bankruptcy process required Section 1114 proceedings prior to amending retiree benefits.

The Section 1114 Pilot Committee was successful in obtaining a bankruptcy court stipulation that the provisions of LOA #51 were not enforceable on retired pilots. Additionally, the Section 1114 Pilot Committee was informed that Delta withdrew all proposals to amend D&S Plan retiree benefits (disability and/or survivorship benefits).

OTHER ACCOMPLISHMENTS

There have been other instances where DDPSA appears to have covered your six o'clock position.

One such instance related to an inadvertent amendment to the D&S Plan which could have significantly reduced the benefits of survivors of many disabled pilots. That inadvertent amendment has been corrected (click here for wording from the 10th Amendment to the 1996 restatement and revision of the D&S Plan, section 25, page 31).
Another accomplishment was a ruling from the Benefits Review Board (BRB) that determined that an inappropriate social security offset was applied to LTD benefits. LTD benefits were adjusted and impacted pilots received payment for previous inappropriate social security offsets.
DDPSA discovered that variable increases improperly were being applied to the offset to LTD benefits when pilots elected a lump sum distribution from the Delta Pilots Retirement Plan. After DDPSA provided documentation of the problem to ALPA, the problem was corrected. This error had negatively impacted the LTD benefits of a number of pilots and had the potential of impacting the benefits of many more pilots in the future.

MORE INFORMATION

MORE INFORMATION: The Flight Plan for the Final Flight West (click here) is a document that should prove useful to your survivors. The Survivor's Benefit Worksheet (click here) can be used to estimate the D&S Plan benefit payable to eligible survivors.

YOUR CONTRIBUTIONS

It is reasonable for DDPSA to expect disabled pilots to join our efforts with an initial contribution of $500 followed by annual contributions of $100 until total contributions reach $1,000. This is a small sum in comparison to the benefits of disabled pilots that have been protected primarily through the efforts of a few dedicated volunteers. Disabled pilots fared relatively well through the Delta bankruptcy. It seems fitting for disabled pilots to lead the effort in assisting all retired Delta pilots and their survivors.