The PBGC appealed a U.S. Bankruptcy Court ruling approving an agreement between Atlanta-based Delta Air Lines Inc. and its pilots union to terminate their pension plan. The appeal was filed Wednesday in bankruptcy court in New York.
Last month, the airline agreed to pay the Air Line Pilots Association International $650 million plus a $2.1 billion general unsecured claim to compensate working pilots for unfunded benefits and terminating their pension plan. The PBGC filed an objection to the proposed agreement on May 24, saying it could violate ERISA. The agency had vowed to appeal when the agreement was approved late last month.
ALPA spokeswoman Kelly Collins had no comment; Delta spokesman Anthony Black wasn't available by press time for comment.
The $7 billion pension plan is underfunded by $10.6 billion, of which the PBGC would be responsible for $8.4 billion.