Northwest

1
Northwest Delta AirlinesPublic Policy
Pension Plan Predicament

• by David Turilli
• Kelly Steinhebel

2
On The Docket

• State of pensions
• Current legislation
• Friend or Foe
• Time to take action
• Conclusion

3
Pension Freefall

• United and US Airways bankruptcy
• Delta and Northwest bankruptcy
• United terminates pension plan
• PBGC 23 billion deficit
• Delta under-funded by 10 billion
• Northwest under-funded by 5.7 billion

4
Bills on the Table

• Senate
• Employee Pension Preservation Act of 2005
• 14 year amortization period
• Down from 25 year option
• Must freeze benefits

• House
• Pension Reform Bill
• No specific airline provision
• Still open to amend

5
Friend or Foe

• Big airline competitors
• Low cost, low fare air
• PBGC
• Senate
• House
• Unions
• Suppliers

(Friend)
(Foe)
(Friend)
(Friend)
Rep. Boehner the Senate language is
irresponsibleThat is not good public policy
(Foe)
(Friend)
(Friend)
6
I Get By With A Little Help From My Friends

• Senate
• Retirement Security Aging Subcommittee in
  Committee on Health, Education, Labor Pensions
• House
• Employer-Employee Relations Subcommittee in
  Education the Workforce Committee

7
Give Them an Offer They Cant Refuse

• Information money
• Target House legislators with major HQ or hub in
  their state
• Senator Johnny Isakson (R-GA)
• PBGC
• Get union backing
• American public

8
Conclusion

• Airlines band together
• Integral industry
• PBGC overload
• Friends in high places
• Defined Contribution Plan

9
Any Questions?
Thank You Have a Good Flight