The PBGC's objection to a pension plan termination agreement between Delta Air Lines and its pilots was rejected this afternoon by the U.S. Bankruptcy Court in New York, said Jeffrey Speicher, PBGC spokesman. The ruling follows the pilots' ratification earlier today of the agreement with the Atlanta-based airline reached last month, according to a news release from the Air Line Pilots Association International.
The airline agreed to pay ALPA $650 million plus a $2.1 billion general unsecured claim to compensate working pilots for unfunded benefits and terminating their pension plan, according to bankruptcy court documents. The PBGC on May 24 filed an objection to the proposed agreement, saying it could violate ERISA.
The agreement between Delta and the pilots requires bankruptcy court approval; the court was considering the agreement this afternoon.
