Delta Airlines 2003 Annual Report Download - page 116

Table of Contents
Target investment allocations for the pension plan assets are as follows:
U.S. equity securities 27-41%
Non-U.S. equity securities 12-18%
High quality bonds 15-21%
Convertible and high yield bonds 5-11%
Private equity 15%
Real estate 10%
Cash Flows
We expect to contribute approximately $440 million to our qualified defined benefit pension plans in 2004. Benefit payments relating to our non-qualified
pension plans are expected to be approximately $60 million in 2004 and funded primarily from current assets.
Our postretirement benefit plans are funded from current assets. We expect to make benefit payments of $161 million in relation to our postretirement benefit
plans in 2004.
Benefit Payments
Benefit payments are made from both funded benefit plan trusts and from current assets. Benefit payments, which reflect expected future service, as
appropriate, are expected to be paid as follows for the years ending December 31:
Other
Pension Postretirement
(in millions) Benefits Benefits
2004 $ 779 $ 161
2005 806 169
2006 841 169
2007 839 168
2008 894 155
2009 - 2013 4,640 590
These estimates are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates.
Defined Contribution Pension Plans
Delta Pilots Money Purchase Pension Plan (MPPP)
We contribute 5% of covered pay to the MPPP for each eligible Delta pilot. The MPPP is related to the Delta Pilots Retirement Plan. The defined benefit
pension payable to a pilot is reduced by the actuarial equivalent of the accumulated account balance in the MPPP. During the years ended December 31, 2003,
2002 and 2001, we recognized expense of $66 million, $71 million and $69 million, respectively, for this plan.
Delta Family-Care Savings Plan
Our Savings Plan includes an employee stock ownership plan (ESOP) feature. Eligible employees may contribute a portion of their covered pay to the
Savings Plan.
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