DP3 joins the NRLN and Implements an Annual Dues Program

I have some exciting news to share with you regarding a new direction the DP3 Trustees have decided to pursue that will hopefully benefit all retired Delta pilots.

First I want to thank all of you who have supported DP3 from its inception by paying all dues and assessments.  These voluntary payments provided DP3 with the funding required to protect the interests of the retired Delta pilots both before and after the Delta bankruptcy proceedings.  For those of you who have not supported DP3 in the past, I want to say that I understand some of the reasons you have chosen to remain on the sidelines and promise to address those issues going forward.  Hopefully, for the other non-contributors it is simply a case that you have not heard about this organization and the tremendous efforts its volunteer trustees have made on your behalf over the past six years. continue reading...

DP3 Chairman's Update 12-17-08 - Medicare Part B Premium Adjustments

In a December 8, 2008 letter to all DP3 members, I discussed the issues surrounding the recent letter many retired pilots have received from the Social Security Administration advising these retirees that their Medicare premiums would increase in 2009.  These increases apply to anyone whose modified adjusted gross income (MAGI) exceeded $85,000 for singles or $170,000 for couples in 2007, the tax year used to compute income adjusted Medicare premiums for 2009.  Due to the bankruptcy related claims paid during the 2007 tax year, many Delta retirees had income that was much higher than normal that year.

While DP3 does not give tax or financial advice, due to the sheer volume of email messages we have received on this subject we have attempted to act as a clearing house to provide you with the latest available information on this issue. To that end we asked our accountant to contact the Social Security Administration to seek answers to the questions we have received to date.  During this process we asked if it would be possible for DP3 to handle this problem for our members, but due to the fact that each case is based on a retiree’s individual financial situation, it will be necessary for each person to deal with the Social Security Administration themselves. continue reading...

Worker, Retiree, and Employer Recovery Act of 2008 - March 23, 2009 Deadline for Statements

DP3 contacted Delta today, March 26, 2009, concerning the status of the ROTH IRA information required by the "Worker, Retiree, and Employer Recovery Act of 2008". The information was required to be sent to the retiree by March 23, 2009. Delta indicated the information has been mailed to all pilot retirees as of March 25, 2009. The delay was caused by late approval from the IRS of the form on which the information was printed. As a reminder, the retiree's contributions to the new ROTH IRA must be made within 90 days of March 23, 2009 or June 21, 2009. June 21, 2009 is a Sunday, so you may want to consider transferring the funds by the close of business on June 19, 2009.

2009 DP3 TRUSTEE ELECTION
April 15, 2009 (updated May 14)

We are pleased to announce the board approved slate of candidates for the 2009 Trustee Board of Trustee election. The nominees this year are Bill Caiazza (I), Dave Davis, Robert Herriott, George Leatherbury, Kenneth "Bud" Musser, Roger Ross (I), Barry Steiner, and Kenneth Ulrich. Our bylaws limit the number of candidates to a maximum of twice the number of open positions for the election, and interest in serving this year was very high. We thank all the nominees for their willingness to serve the DP3 membership.

The resumes and statements of the candidates are posted on the DP3 web site here: Candidate Resumes.  Reviewing this document is a prerequisite for voting.

The election has begun and will run from April 15, 2009 until May 31, 2009. Only fully paid Honor Roll members are allowed to vote in the Board of Trustees election. Four board members are being selected by the 2009 election. Email invitations to vote in the 2009 election are being sent to Honor Roll members by our mail service Constant Contact. The e-mail contains the link to the ballot and is the only way an Honor Roll member can vote in this year's election. Any member who brings his account up to Honor Roll status before the polls close will be sent a ballot as soon as practicable after the payment is received. Since balloting is by invitation only, members are urged not to wait until the last minute to pay their dues and request a ballot.

The Honor Roll posted on the DP3 web page is current as of May 14, 2009. If you are an Honor Roll member and do not receive an invitation to vote, Contact Us to verify your status and update your e-mail address.

Thank you for supporting DP3 as a fully paid Honor Roll member and having a say in the future of DP3 by participating in the Trustee election.

John Mills
Chairman, DP3 Nominating Committee

Nominations Open for 2009 DP3 Trustee Election

I am writing this DP3 Chairman's Letter to announce two important events: the launch of the new DP3 web site and the opening of nominations for the election of four DP3 Trustees.

This will be an important year in the history of DP3 as we pursue our legislative agenda in an attempt to mitigate some of our pension losses from the Delta bankruptcy. We also expect the PBGC to issue its final benefit determination letters later this year, an event that will start the forty five day clock to appeal those decisions. We are looking for some talented volunteers to help us achieve our ambitious goals, so please consider making yourselves available for election to one of the Trustee positions. continue reading...

Updated ROTH IRA Rollover Q&A from the ALPA R&I Committee
May 22, 2009

The deadline for contributing your bankruptcy settlement dollars into a ROTH account under the provisions of Public Law 110-458, the Worker, Retiree, and Employer Recovery Act of 2008 is less than one month away. We have been asked a lot of questions about the provisions of this legislation, but DP3 is not chartered to provide tax or financial advice. However, ALPA has prepared a Q&A about this subject for their members, and we have posted it in the Documents section of our web site. While you may have previously reviewed this report, it has been recently updated. Remember, the last business day to make a contribution under the terms of this law is June 19, 2009. Read the ALPA ROTH Q&A...

CAPWIZ ACTION ALERT REQUEST FROM NRLN

The NRLN has issued an important Action Alert message. We urge you to utilize the (NRLN CapWiz Alert System) to send a message to Congress asking them to protect retirees in bankruptcy court. The pre-formatted letter is focused primarily on lost healthcare benefits; we have modified it to reflect the experiences of the Delta pilots in our bankruptcy and have provided suggested language (click "continue reading" below) to cut and paste into the text window of the CapWiz alert. Alternatively, you may write your own message. Please take the time to send your message now – the system is incredibly easy to use and only takes a few moments. continue reading...

Worker, Retiree, and Employer Recovery Act of 2008
Note: This information is provided courtesy of Retirement Advisors of America, A PHH Investments Company.
Remember that DP3 does not give tax or financial advice.

There has been some confusion regarding the eligibility for the new Roth IRAs as a result of the legislation in the title of this article, above, (P.L. 110-458 - "Worker, Retiree, and Employer Recovery Act of 2008", Formerly known as H.R. 7327.) This legislation created the opportunity for Roth IRAs for "airline settlement amounts" received in bankruptcy settlements for airline workers whose pension plans were terminated after 9/11/01. This article is a follow-up and update to our 12/18/08 email (that went to clients only) on this same subject, sent out before the Act was actually signed into law by President Bush on 12/23/08.

The Bill covers two items of particular interest to retired Delta pilots: First, in Section 125 of the Bill, it permits the "ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER BANKRUPTCIES TO ROTH IRAs." Secondly, it waives, for those already over 70 1/2, the RMD (Required Minimum Distribution) from your IRA Accounts – For 2009 ONLY. continue reading ...

Chairman's Report from Trustee Board Meeting 2-11-09

The DP3 Trustees recently met in Atlanta for our quarterly board meeting. Subjects discussed included our legal planning, the status of the Soaring Eagles case against the PBGC, Medicare and HCTC benefit issues, our new NRLN membership, and reports from the four DP3 committees.read full report... The minutes of this meeting are now posted in the documents section of our web page. Read the minutes...

Two Updates from Delta

We learned of two important items from Delta this weekend.

Item one: The Delta Air Lines annual meeting has been postponed. Originally scheduled for April 24, 2009, it has been moved to June 22, 2009 at 8am in New York. No reason was given for the postponement. DP3 is planning to send a board member representative to attend the meeting. If you would like us to act as your proxy at the annual meeting, please watch for instructions later this spring.

Item two: Delta has filed their fourth request for an extension to the deadline for settling the outstanding bankruptcy claims. The hearing for the request will be held April 8, 2009 if a hearing is necessary. The new deadline for settling claims will be October 19, 2009 if the motion is granted. The motion is posted on our web page in the Documents section for your viewing.

DP3 to Attend Delta Annual Meeting
posted June 11, 2009

Delta Air Lines' (NYSE: DAL) Board of Directors has set the airline's annual meeting of stockholders for June 22, 2009 in New York City. The meeting will be held at 8:00 a.m. EDT in the Auditorium at AXA Equitable Center, 787 Seventh Ave., New York.

The record date for determining stockholders entitled to notice of, and to vote at, the annual meeting will be the close of business on April 24, 2009. The proxy statement can be viewed at http://images.delta.com.edgesuite.net/delta/pdfs/annual_reports/Proxy09.pdf.

DP3 Trustees will be attending the annual meeting in person and will vote proxies according to the best interests of the retired pilots. If you would like DP3 to vote your proxies please contact us at www.dp3.org.

We have prepared an example for a proposed letter to the Delta Board of Directors, which includes a list of Directors and the address for any Board mail. We would ask that you consider sending the Directors your opinions regarding your retirement. Use the sample letter posted in our Documents section or compose your own letter and send that to each of the Directors. Your family or friends may wish to send a letter also.

Thanks again for your continued support.

Chairman's Update 4-5-09
posted April 7, 2009

It has come to our attention that some retirees who retired on or before January 1, 1997 (or after that date if you retired under the contract 96 early retirement program) were not aware of a special contractual provision that allows them to receive a reimbursement from Delta for their Medicare Part B Premiums (this provision was eliminated effective January 1 1997 for retirees who retired after that date.) Apparently some retired pilots were automatically enrolled in this program while others were not, and some retirees did not even know the reimbursement existed. If you are a pre-January 1997 retiree and are not currently receiving this benefit, please notify DP3 and the Delta Employee Service Center immediately. (1-800-MY-DELTA) read the full Chairman's update...

Trustee Update 3-26-09
posted April 4, 2009

This month's letter will be a departure from Will's usual excellent summaries of the current status of our efforts on your behalf. Will has undertaken so many tasks that I asked him to let me write this one rather than have him take time away from those responsibilities. The fact that he agreed shows how busy he is.

This is an opportunity to show you some of the inner workings of DP3. I'll summarize and provide links to some of our current efforts at the end of this. Additionally, the minutes of our March conference call are available on the web site. For those of you interested I hope you'll take the time to read the entire article before you scan to the bottom... read the full update...

Chairman's Report from May 2009 Trustee Board Meeting
May 15, 2009

The DP3 trustees held our quarterly face to face meeting on May 6, 2009 in Atlanta. During our meeting we discussed and took action on many items of interest to the DP3 members, including DP3's involvement in a new Bankruptcy Reform Team at the NRLN, the work of the R&I Committee regarding errors on the PBGC benefit estimates, the creation of a separate DP3 Insurance Committee headed by Jeff Pickett, an update on the 2009 Trustee Election, and an update on DP3's participation at the Delta Annual Meeting in June.  Read the full report...

The minutes of this meeting are posted in the documents section of our web page. Read the minutes...

2009 DP3 Trustee Election Results
June 4, 2009

The 2009 DP3 Trustee election is complete and the results have been certified by the Board of Trustees.

Before announcing the new board, DP3 would like to thank Jim Bomar and John Mills for their years of excellent service to the membership. We wish them well as they enjoy their future retirement years.

The four candidates elected to the DP3 Board of Directors for three year terms starting July 1, 2009 are:

Bill Caiazza    George Leatherbury    Bud Musser    Roger Ross

The Trustees would like to congratulate and thank each of these candidates for their willingness to serve their fellow retirees. DP3 would also like to thank all of the candidates for their willingness to be nominated for election. DP3 would like to recognize all of our Honor Roll members and especially those who have recently upgraded their status to Honor Roll. The Honor Roll is the backbone of our organization and their support is vital to our efforts. We encourage any member to become involved by volunteering to serve on one of our committees as we seek to maximize our pension benefits.

DP3 strives to be an organization driven by the wishes of our membership. The goal of all DP3 Trustees is to keep our members informed on issues that affect our retirement and benefits. DP3 maintains an informative web site at DP3.ORG detailing important information about retiree issues and our activities. In the coming months all retirees will receive the final determination letters from the PBGC. DP3 has already identified some errors that may be included by the PBGC in your final benefit calculations. DP3 intends to represent all Honor Roll members who disagree with their final determination to ensure that our earned benefits are calculated accurately.

DP3 is also actively involved in drafting legislative remedies for PBGC issues that reduce some of the benefits that we receive from the PBGC. In the coming months we will be asking our members to contact their representatives in support of these efforts. We encourage you to stay informed and communicate with us and your elected congressional representatives.

Thank you to our Honor Roll members for your participation in the voting process and your support.

DP3 Attends Delta Annual Meeting
June 23, 2009

[from DP3 Chairman Will Buergey] Yesterday, I had the honor of representing the retired Delta pilots at Delta's annual shareholder's meeting held in New York City. Captain Wendell Lewis, DP3's Vice Chairman accompanied me to the meeting and DP3 Honor Roll member Denis Waldron was also in attendance. Each of us spoke to the Delta directors and shareholders on behalf of the retired pilots. Wendell and I would like to express our thanks for the opportunity to represent you with your proxies. They were voted as: Against - all Directors for failure to address our concerns, For - Ernst & Young as independent auditors, For - cumulative voting in the election of directors. Thank you for the confidence you have shown in your Trustees. Click this link to review the prepared statement I read to the board.

DP3 to Attend NRLN Fly-In to Washington in mid September
August 1, 2009

We invite you to join your DP3 Trustees in Washington, D.C. on September 15-17 for a fly-in meeting with key congressional leaders and staff members regarding bankruptcy reform and PBGC proposed reforms. The NRLN will be assisting us with briefings to effectively lobby members of congress to prevent the loss of pension benefits during bankruptcy and improve the way the PBGC calculates our benefits.

Note that the NRLN will provide $50 if you attend the briefing on the 15th or 16th and dinner for the member and spouse on September 15th. We will be joined by many members from all areas of the NRLN in a concentrated effort to get proposed legislation introduced by this congress. After the briefing by the NRLN we will be going to key congressional offices to talk to representatives. Many members of congress are much more receptive to their own constituents so you should also request to meet with your representative.

You do not have to be an expert on pension reform or PBGC procedures to attend. We will assist you in your efforts and will be attending many of the meetings with you. If you can attend please contact us through the web site or at contactus@dp3.org, a trustee will respond and provide you with all the necessary information. We may be able to assist you in securing rooms at a better rate. Priceline seems to be booking rooms in the $80-90 range. We look forward to you joining us in this effort to restore our earned benefits.

If you cannot attend the fly-in please review the information in the rest of this document and contact your representative during the August recess and voice your concerns. We will provide you with information about our PBGC initiatives. continue reading...

NRLN Fly-In Report
September 29, 2009

Last week many of your DP3 trustees and members Don Tibbs, Rhea Nichols, Ken Ulrich, Ron Jones, Denis Waldron, and Jim Webster met in Washington, D.C. to participate in a legislative "Fly-In" sponsored by the National Retiree Legislative Network (NRLN). Retired Delta pilot Valerie Walker also participated as a member of DDPSA.

Most of you will recall that DP3 affiliated with the NRLN in January of this year with the realization that over two million collective voices, acting through the NRLN, have more political influence than a few thousand retired Delta pilots acting independently.

This Fly-In was the culmination of an effort by DP3 to assist other retirees maintain their hard earned benefits during corporate bankruptcies. Based on our experiences in the Delta bankruptcy we helped craft background papers and legislative proposals for the NRLN designed to level the playing field for retirees when their former employers declare bankruptcy, while also protecting the pension benefits of those (including us) whose pension plans have been turned over to the PBGC.

An executive summary of our PBGC whitepaper is posted in our documents folder, and you can read the full report of the meeting here: Read the full report

URGENT! Delta Withdraws new COBRA option for 2010 Open Enrollment
November 7, 2009

DP3 has just received confirmation that Delta's recent COBRA offering to retirees, who were originally excluded from the lifetime COBRA option during the bankruptcy process, has been declared by the IRS as ineligible for the Health Care Tax Credit.

Because of this administrative ruling, the COBRA offering does not make economic sense and Delta is withdrawing it as an option during this year's enrollment period. You will soon receive a letter from Rob Kight explaining this in more detail, but we have posted a copy of Delta's letter here.

DP3 was grateful that Delta made this "COBRA" offering after we had repeatedly requested that they review the exclusion of so many retired pilots, and their dependents, from the original offer of lifetime COBRA benefits. It is unfortunate that Delta did not receive pre-approval for the HCTC eligibility from the IRS prior to posting this as one of the medical insurance options for 2010. This lack of approval has raised expectations unnecessarily and the manner in which the offering was initially communicated led to enormous confusion among the pilots who were trying to evaluate their options during this enrollment period.

For those who had already signed up for the COBRA coverage you must change your selection prior to the end of the annual enrollment period, November 17, 2009. If you do not make another selection prior to the deadline, then Delta currently plans to have you default into the Delta Family Care Medical Plan at 100 percent of the premium, even though those of you over age 60 probably qualify for the Delta Pilot Medical Plan with your share of the premium only 51% of the full premium. (35% if you are a retiree currently receiving zero in benefits from the PBGC.)

You should also notice that this is the first time pilot retirees have been offered the Delta Family Care Medical Plan as a post-bankruptcy insurance option, and it is not clear if that option will be made available in subsequent enrollment periods. There are also significant differences between the DPMP and the DFCMP and you should carefully evaluate how those differences fit the needs of you and your family prior to making a selection.

DP3 is still pursuing the establishment of a Voluntary Employee Benefit Association (VEBA) through an order of the Bankruptcy Court. It is unfortunate that last month's hearing was cancelled, but our request should be heard at the hearing scheduled for November 13. (Please note that this hearing date has been moved up from the previously scheduled November 17th date - Docket #7464 on the Bankruptcy Web Site.) If we receive court approval we hope to roll our VEBA plan out in early 2010 and we plan to have it approved by the IRS for HCTC eligibility prior to rollout.

Health Insurance FAQ for 2010 Open Enrollment
November 3, 2009

We have been receiving many questions from the DP3 membership regarding the 2010 Open Enrollment options and process, particularly about the new COBRA option and the HCTC benefit. Acknowledging that we are not trained in Delta's myriad Health Insurance options, and certainly not experts in the federal Health Coverage Tax Credit (HCTC) or the COBRA option, we are nonetheless trying to provide some basic information that you can use in making your 2010 choices for health coverage.

We have prepared a web page listing the questions we have been asked and the best answers we can obtain from the various sources available to the public. The Q&A is available through the link on the FAQ drop down menu or by clicking this direct link here: http://www.dp3.org/ns/2010oeFAQ.html.

Please remember that we are not experts, and as much as we'd like to, we can't make your decision for you. But we can share with you the process that some of the trustees have used to make their decisions.

First, you need to be sure that you are eligible for the HCTC. If you are not, you should consider the high cost of the COBRA coverage before choosing that option. We can tell you that for those not eligible for HCTC (see the Q&A for guidance) the COBRA coverage is based on the DFCMP and is more expensive than the DPMP and has less coverage. Second, if you are eligible for the HCTC, we suggest that you investigate your state HCTC eligible program. Not all states have them, and the costs and benefits vary widely. Third, in order to compare the DAL plans you need to look at the benefit brochures. We have included them at the top of the Q&A page. DAL has not made this easy. First look at the 2010 Retiree Benefits Highlights. The current deductibles and other limits of the plans are there. Copy those numbers down, and then go to the Benefits Handbook, which was published in 2008. The details of the plans are in that brochure, but the deductibles and limits are not correct. You must apply the limits you copied down from the Highlights brochure.

To find out details of the drug plan, you must go to the UHC web page and find the drug calculator to find out whether prescriptions you have are covered, and how much they will cost you under the Delta plans.

This is by no means all of the information you should be comparing, but it gets you past the more confusing parts of the process.

Finally, we are aware of two possible glitches in the enrollment process. Some retired pilots are not showing the COBRA option on their paperwork - if you think you are eligible and do not have the option, call the Delta ESC. Also, when switching from the HVO to the Age65 COBRA option, sometimes you cannot de-select the HVO option, and it appears you are signing up for both. Again, call the ESC to ensure you have completed the selections properly.

Some key points to remember. The DP3 VEBA will not be available during this year's open enrollment period. The HCTC rules are very specific and well documented on their web site. Premium payments must be made on time or you risk losing both the COBRA deal and the HCTC. The HCTC Customer Contact Center (1-866-628-4282) is staffed with very professional and helpful agents, but they are very busy with applications resulting from the ARRA act, and they are already about 6-8 weeks behind; so be prepared to make the full premium payments for at least 2 months before you start your HCTC benefit if you choose the new COBRA option. Read our Health Care FAQ

Delta Offers One-Time COBRA Option to Retirees
Plan is HCTC Eligible (for those receiving PBGC check)
UPDATE: THIS PROGRAM HAS BEEN WITHDRAWN
October 15, 2009

One of the issues DP3 has pursued vigorously since the bankruptcy is an HCTC eligible healthcare option for retired pilots previously excluded from Delta medical coverage during the bankruptcy. You may recall that back in August, DP3 began the process to create a VEBA for those retirees (see article here), a process which is still in work through our attorneys and insurance brokers. We do not have a timeline for when the VEBA may come to fruition, but since it involves Delta's cooperation and concurrence, bankruptcy court approval, and IRS approval, we are not confident that it will be completed in time for the 2010 open enrollment period.

We are therefore gratified that Delta has finally rectified the bankruptcy oversight by announcing that they are making available a one-time option for retired pilots to enroll in COBRA coverage, which by definition is HCTC eligible for those of you that meet the other HCTC requirements, such as receiving a check from the PBGC and not being on Medicare. This new COBRA opportunity is explained in their letter to retirees dated October 5, 2009. Please note that this is NOT the VEBA plan DP3 has proposed.

We urge each retired pilot to study the 2010 open enrollment material carefully when making your health insurance coverage selections this fall. Keep in mind that the HCTC currently pays 80% of your total insurance premium, which will last through the end of 2010 under the terms of the ARRA act. In 2011, that payment rate could drop back to the standard 65% of premiums, if the temporary ARRA benefit increase is not extended. We do not have information on the likelihood of that, but plan to lobby for that as part of our ongoing legislative efforts.

Information on this new program, as well as all the Delta medical options for 2010, is available on the Delta Extranet. Logon to https://dlnet.delta.com/, navigate to the Retiree Connection link on the Employee Info menu, and review the documents posted there.

For additional information on the HCTC, click here: http://www.irs.gov/individuals/article/0,,id=187948,00.html.

A reminder: Those of you that are still receiving zero dollars of qualified annuity from the PBGC are not eligible for the HCTC (from Delta COBRA, the DP3 VEBA, or any other health plan) at this time; however, we want you to know that we are pulling out all the stops to try to rectify that problem by using our contacts in the legislature and the PBGC to find a way to solve this problem.