DP3 Ramps Up for Pension Appeal and Healthcare Option
May 26, 2010

1. Trying to maximize your final pension benefit now that the PBGC has starting issuing our final Benefit Determination Letters (BDLs)
2. Establishing an affordable healthcare plan.

• Work closely with our Washington D.C. based law firm, Miller & Chevalier, to file a consolidated appeal with the PBGC. To be part of the appeal, Honor Roll members must complete a brief survey and sign a Designation of Representation form even if you have not yet received your BDL. Miller & Chevalier will handle all logistics with the PBGC moving forward.
• DP3 has received authorization from the bankruptcy court to establish a Voluntary Employee Benefit Association (VEBA) and elected the following retired pilots to serve on the new VEBA Board: Dave Miller, Michael Cox, Tony Piacentino, and Marion (Doc) Hindman. On May 12-13, the DP3 Trustees and new VEBA Board members received an in-depth briefing from Cone Insurance Group, several insurance providers, representatives of the IRS and Health Care Tax Credit Unit. The VEBA Board is waiting for Delta to provide additional data so providers can bid for our business. Once these pieces are put together, the DP3 VEBA will offer HCTC eligible (the IRS will pay 80% of the monthly premium) health insurance to retirees who are receiving a check from the PBGC and who are between the ages of 55 and 64. The VEBA will also offer a broad spectrum of insurance products to other age groups.
• Conduct the election for the DP3 Board of Trustees. Three positions are up for election during this cycle; only Honor Roll members can vote. Note that only Honor Roll members have received the detailed emails regarding the PBGC appeals process. If you're an Honor Roll member, thanks for your support and continue to pay close attention to our emails. If you're not an Honor Roll member, it's time to join so we can help you recoup the pension benefits you've earned and deserve.

Some Good News from the PBGC
Posted 4-14-2010

In recent months, DP3 has appealed to the PBGC (see our Chairman's letter to the Secretary Of Labor) to find a way to minimize the hardship several hundred of our members suffered as a result of receiving zero benefit from the PBGC - they were ineligible for the valuable Health Coverage Tax Credit which offsets the cost of certain qualified insurance expenses as much as 80%. We are pleased to announce that we have finally received a positive response from the PBGC, indicating that not only will the zero's be first in line for Final Benefit Determination Letters, but some HCTC payments may be retroactively paid back to these members who will begin receiving a monthly check from the PBGC as early as June 1, 2010. Read the PBGC's letter to DP3 here.

Important Developments for Retired Delta Pilots
April 11, 2010

The PBGC has just advised the DP3 Trustees that Final Benefit Determination Letters (FDLs) for some retired pilots will begin arriving this month; the agency hopes to have all letters issued by the end of 2010. As a reminder to those of you who have not been closely following the bankruptcy issues, our PBGC benefits up until now are based on estimated calculations performed by Delta while the PBGC has been reviewing the plan assets and the retirement provisions of our Pilot Working Agreement to determine our Final Benefits. The PBGC has previously advised us that based on its initial reviews of the Delta calculations, some FDLs will show an increase from current benefits while a minority of retirees might see a reduction from current benefits.

The DP3 Trustees have been working to improve the manner in which the PBGC calculates our benefits, but federal law prohibits us from suing the agency over our benefits until it has issued our FDLs and all administrative options have been exhausted.

As a reminder, a retiree only has forty-five days from the issuing of the FDL to challenge the PBGC calculations. The process is complicated, which is why we have retained lawyers to represent our members in their appeals. DP3 is prepared to represent our Honor Roll members in these challenges, and we will advise you how to proceed once the letters start arriving in our homes. Because of the tight deadlines, however, you should let us know as soon as you receive your FDL so that we can obtain a copy of it to provide to the lawyers. If you do not provide your FDL to us in a timely fashion, we will not be able to secure effective representation for you in the appeals process. Please note: All communications to our law firm must go through the DP3 Trustees. Do not mail your FDLs to our attorneys, or try to contact them directly by phone or email. Any Delta Pilot retiree who attempts direct contact with our law firm might be liable for any legal fees incurred.

We urge you to contact any fellow Delta retired pilots that might not be aware of the FDLs being issued and the role DP3 will play should we need to appeal the PBGC's calculations. Read the rest of the Chairman's Update here for info about the VEBA and Trustee Election...

Here are some brief answers to questions already asked (more will be added as they come in):

1. How do I update the PBGC with my current mailing address?
   Call the PBGC at 1-800-400-7242 - (open 8 am to 7 pm on weekdays) or go to http://www.pbgc.gov/workers-retirees/find-your-pension-plan/PlanPage/plan_20544100.html or log-in to your previously established PBGC account at MyPBA: https://egov2.pbgc.gov/mypba/login.aspx
2. How do I become an Honor Roll member of DP3?
   Full Honor Roll membership requires payment of all dues and assessments, currently totaling $1200. Use our contact message link on the menu bar above to check your membership status if you do not know what it is. If you have never joined DP3, or previously joined but revoked your proxy, use the JOIN DP3 link on the menu bar above and fill out an application. Dues may be paid online or mailed to the address in the Payment Option box to the right.
3. What information do you need from us and how should we send it to you?
   We are working with counsel on a procedure and contact point for sending us information. We will be advising you about this within the next couple of weeks. We will post the information here and send email notices to our mailing list with specific instructions.
4. What is the 45 day challenge period for?
   If you have an objection to the amount of your final qualified plan PBGC benefit, you have 45 days after receipt of the letter to file an administrative objection to your final benefit. As we understand it, after 45 days, in most cases, your benefit can never change, even if other retired pilots are successful in challenging theirs.
5. What issues would we appeal?
   There are two major areas of appeal:
   a) Errors, including both incorrect data and improper calculation procedures. We saw both occur in some cases with the original estimates done by Delta. These have most often included the use of incorrect Internal Revenue Code tables, and in the calculation of the lump sum.
   b) Procedural objections. This will be the primary focus of DP3's efforts. We have objections to the way the look backs are affecting the IRS limitations being used to calculate our pension benefits. We, and our (as in all DP3 members) counsel believe we have very strong arguments, and success in these objections will mean a significant increase (typically over $1000/mo) to most of the approximately 4000 retirees affected.
6. How do I appeal? When should I appeal? What do I do?
   Your legal team is putting together guidelines that will direct you on exactly what to do and who and where to send the appeal information. These will be published on this web page, as well as sent to Honor Roll members within the next couple of weeks. Please do not send information to our attorneys or attempt individual contact via phone or email; doing so may subject you to collection of any legal fees incurred.
7. Do I need a lawyer to file an administrative objection?
   Legally, no. But, preparing the objection is generally complicated and requires an understanding of ERISA law and the PBGC's regulations, and having legal representation is by far the most effective and preferred method of pursuing this process. Only Honor Roll members of DP3 will be represented by the DP3 attorneys.
8. What is the timeline after I file an administrative objection?
   Going by the experience in the recent and similar USAir case, it takes the PBGC about a year to finish the administrative appeals. If an appeal is denied, that is the first point at which the PBGC can be sued in Federal Court.
9. What do you mean, a minority of retirees may see a reduction in their current benefits?
   Current benefit payments are only estimates made 3 years ago (and perhaps modified in the interim). The final payment you are entitled to may be higher or lower than your current payment depending on the following factors: final pension plan values, payments to the agency by Delta during termination, audits of each pilot's career earnings, retirement plan provisions and amendments, etc. Based on DP3's research we believe that reductions are unlikely for the vast majority of DP3 members, and we've been working virtually full time to assure that all calculations are done correctly.
10. How can I find out more about the appeal process?
    Our attorneys are developing an action plan today. We will use our email system to keep the membership informed of procedures and steps that needed to be taken by the membership as we embark on this process. Please make sure DP3 has your current email address, and remember to update us if you change it. Send us a contact message to ask questions that are not answered here, but remember that we are 9 volunteer trustees and we have over 3000 DP3 members, and it may take time to get a response back to you.
11. What happens if my estimated payments for the last 3 1/2 years were higher or lower than my final benefit amount?
    If your final benefit is higher than the estimated payments you have been receiving, the PBGC will repay the shortfall in a lump sum with interest. If your final benefit is lower than your current estimated payments, your benefit checks will be reduced up to 10% until the overpayment has been repaid, with no interest penalty. See this PBGC page: http://www.pbgc.gov/media/news-archive/news-releases/1998/pr98-26.html

DP3 Chairman's Update
Posted March 20, 2010

Last week your DP3 trustees held their monthly board meeting via conference call. We discussed many items of interest to our members; the complete minutes of the meeting are available by clicking here: Minutes of the DP3 Board Meeting March 10, 2010.   Other issues we covered include the 2010 DP3 dues program, an update on our VEBA effort, and a discussion of the nominations for the 2010 Trustee Elections. Click here for the full text of the March 19, 2010 Chairman's Update.

You may recall that last month's Chairman's Update was emailed to the membership in two formats, and we conducted an informal poll of which format you preferred. The new "newsletter" format was preferred by an overwhelming 84% to 16% of the members who participated in that poll, so that will become our new standard. Please watch for our newsletters in your email inbox, make sure DP3 is white listed in your mail program, and make sure we always have your current email address.

DP3 Chairman's Update
Posted March 10, 2010

During the February 10, 2010 DP3 Trustee meeting, we discussed many issues of importance to the retired Delta pilots. Rather than providing a full recap of that meeting here, you can read the minutes posted on our web page by clicking the link here: Minutes of the DP3 Board Meeting February 10, 2010 Other issues covered in the Chairman's Update include 2010 DP3 Dues Program, DP3 Honor Roll Members and the PBGC, The Importance of Supporting DP3 Now, and How Can DP3 Help You?

We distributed our Chairman's Update in two formats this time, our traditional business letter format and also a new newsletter style format. After reviewing both formats, please participate in a quick poll of which you like better by going to this link Newsletter Poll to register your opinion.

DP3 Letter to Delta CEO Richard Anderson Regarding Cancelled COBRA Option
November 12, 2009

Many retired Delta pilots received the recent announcement of a one-time COBRA enrollment opportunity from Delta with a great deal of joy and appreciation. Hundreds of retired Delta pilots were not eligible for the previous COBRA enrollment opportunity in 2007 because they were either not yet age 60 and/or they were not previously enrolled in either the Delta Family Care Medical Plan (DFCMP) or the Delta Pilots Medical Plan (DPMP). In either case, these retirees were shut out of the primary method of capturing the Health Care Tax Credit (HCTC) offered by the IRS.

But it was with an equal degree of sadness to find out that the COBRA plan as offered by Delta for 2010 did not receive approval from the IRS for the HCTC. The offer of COBRA insurance was therefore withdrawn by Mr. Rob Kight in his letter of November 5, 2009...Read the rest of Chairman Buergey's letter here...

New PBGC Director Nominated
November 10, 2009

The Administration has announced that it has nominated Joshua Gotbaum as the new PBGC Director. For details, please see the Press Release by clicking the following link: http://www.whitehouse.gov/the-press-office/president-obama-announces-more-key-administration-posts-11909.

Information on 2010 Medical Insurance Options and an Update on the DP3 VEBA
October 25, 2009

This is a reminder that the open enrollment period for Delta benefits opens for retirees on October 28 and closes on November 17. It is important to note that some of this year's default options have changed, so even if you plan to maintain your current selections, you should check the Delta Benefits Direct section of Delta Net to ensure that your choices are what best suits you and your family for the next year.

It is unlikely that our proposed VEBA will be established before the end of the year due to the cancellation of last month's scheduled bankruptcy court omnibus hearing date. The next court hearing date is not until November 17 which coincidently is also the last day of the open enrollment period for next year's Delta benefit selections. We are, however, thankful that Delta has decided to offer HCTC eligible COBRA coverage to our members--it is, and has been, the right thing to do for those who have been excluded from Lifetime COBRA.    Read the full details here...

New DP3 Healthcare Option
August 23, 2009

[from DP3 Chairman Will Buergey] DP3 is acutely aware that many members have suffered a loss of medical benefits as a result of the bankruptcy of Delta Air Lines. The post bankruptcy health care benefits we were left with were determined by Delta and the Pilot 1114 Committee - not by DP3.

Unfortunately the 1114 Committee was not able to protect many of our members, notably those who were under age 60 on January 1, 2007. Due to the age restriction imposed by Delta to qualify for the bankruptcy COBRA, many retired pilots were not eligible for the COBRA option, which was the only Delta sponsored plan eligible for the Health Coverage Tax Credit (HCTC).

Over the past several months I have asked Delta several times to reconsider the decision that prevents retired pilots and their spouses from joining the COBRA eligibility list once they pass their sixtieth birthday. These efforts have been futile, but I recently discussed this issue with an attorney who is familiar with the American Recovery and Reinvestment Act of 2009 (ARRA). The ARRA not only increased the HCTC contribution from 65% to 80% until the end of 2010, but also provided an accelerated methodology for the creation of a Voluntary Employee Benefit Association (VEBA) that can offer HCTC eligible healthcare insurance to its members. continue reading...

The Social Security Offset
June 20, 2009

As our retired pilot population ages, many of us are going to be affected by the Social Security offset of the PWA. Referencing page 9 of the July 2005 Delta MEC Retirement and Insurance Handbook: "Social Security Offset - Applies at the earlier of the date of your Social Security benefits or age 65. If you were on the DAL, WAL, or Pan Am seniority lists before February 9, 1982, your monthly offset is $94 at age 62 or $117 at age 65. Otherwise, your offset equals $259 monthly (at age 62) prorated for service less than 25 years. If you receive the Minimum Benefit, no offset applies."

Many of you have asked: what does all this mean? For a discussion and examples of the offset, read this briefing prepared by Trustee Bill Caiazza.

NRLN Task Force Working to Reform Bankruptcy and PBGC Rules
May 13, 2009

[From Bill Kadereit, NRLN President] In February, I sent letters to President Obama and the Senate Judiciary committee members to advocate the need for legislation to reform bankruptcy laws to better protect retirees' pensions and benefits in bankruptcy court proceedings. My letters were followed up with an NRLN Action Alert that saw Grassroots Network members email nearly 7,000 letters to Washington on this issue. In March, the NRLN presented to a Congressional staff member a white paper prepared by the Delta Pilots retiree organization on the need to reform bankruptcy laws and Pension Benefit Guaranty Corporation (PBGC) rules. Now, the NRLN is taking an additional step forward with the creation of a Task Force to not only address needed changes in bankruptcy laws but also in rules applied by the PBGC when it takes over a defined benefits pension plan. continue reading...

Synopsis of the Soaring Eagles Court Case against the PBGC
March 29, 2009

We have asked our attorneys at Miller and Martin to prepare a layman's explanation of the recent court decision in the Soaring Eagles case against the PBGC. For those not following closely, Soaring Eagles is the DP3 counterpart on the USAir property – the retired pilots of USAirways. They have already received their final benefit determinations and exhausted the administrative objection process, and are now litigating 11 parts of their benefit determinations in federal court.

We want our membership to know that the DP3 trustees and our lawyers are following the USAir case closely. While their pilot working agreement (PWA) and retirement programs are significantly different from our own PWA and retirements, and the outcome of much of their litigation will not apply to our situation, there are some similarities which may establish some precedents that will either help or harm our own potential case against the PBGC if we ultimately end up challenging our own final benefits.

Mr. Booth has reminded us that "virtually no legal principal is as clear as it appears when lawyers explain it to someone. The law, if one reads the several opinions in the Chevron case, is certainly not as clear as I have articulated it."

We will try to provide regular updates to the Soaring Eagles case as developments warrant. Click here to read the synopsis...

Good News from the HCTC Program

The American Recovery and Reinvestment Act of 2009, new economic stimulus legislation, was recently approved by Congress and signed by the President. Included in this legislation is the Trade Adjustment Assistance Health Coverage Improvement Act, which changes some of the requirements for the Health Coverage Tax Credit (HCTC). The new law, including the changes to the HCTC, expires on December 31, 2010.

A key change that is important to DP3 members is that the HCTC will pay a greater portion of your health insurance costs. The tax credit is increasing from 65% to 80% of qualified health insurance premiums. If you are a monthly HCTC participant, the 80% tax credit amount will be reflected on your HCTC invoice beginning in April 2009.

The changes will expire on December 31, 2010. For more information, call the HCTC at 1-866-628-HCTC (4282) or review the HCTC Latest News Page on the IRS.GOV web site.

Rumors, Questions, and Doubts

Recently we have seen a surge in rumors, apparently spurred by the widely publicized denial of the Soaring Eagle’s request for preliminary injunction.  The misinformation that is taking on a life of its own is not in the best interest of the retirees.  The following is an effort to bring facts into the discussion: continue reading...

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