Delta Airlines 2004 Annual Report Download - page 101

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Cash Flows
We expect to contribute approximately $275 million to our qualified defined benefit pension plans in 2005. Benefit payments relating to our non-qualified
pension plans are expected to be approximately $65 million in 2005 and are funded primarily from current assets. We also expect to contribute approximately
$110 million to our defined contribution pension plans in 2005.
Our other postretirement benefit plans are funded from current assets. We expect to make benefit payments of approximately $190 million in relation to
our other postretirement benefit plans in 2005.
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
2005 $ 792 $ 188
2006 766 189
2007 797 191
2008 812 171
2009 876 163
2010 – 2014 4,519 669
These estimates are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates.
Other Plans
We also sponsor defined benefit pension plans for eligible Delta employees in certain foreign countries. These plans did not have a material impact on our
Consolidated Financial Statements in 2004, 2003 and 2002.
Defined Contribution Pension Plans
Delta Pilots Money Purchase Pension Plan ("MPPP")
We contributed 5% of covered pay to the MPPP for each eligible Delta pilot through December 31, 2004. 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, 2004, 2003, and 2002, we recognized expense of $65 million, $66 million, and $71 million, respectively, for this plan.
Although contributions to the MPPP ceased effective December 31, 2004, individual accounts will continue to be credited with investment gains/losses and
the actuarial equivalent of the accumulated account balance at retirement will continue to offset the participants defined benefit pension benefit.
Delta Family-Care Savings Plan ("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.
Generally, we match 50% of non-pilot employee contributions with a maximum employer contribution of 2% of a participant's covered pay and provide
all eligible Delta pilots with an employer contribution of 3% of their covered pay. Effective January 1, 2005, the employer contribution for eligible Delta
pilots was reduced to 2% of their covered pay. Generally, we make our contributions for non-pilots and pilots by allocating Series B ESOP Convertible
Preferred Stock ("ESOP Preferred Stock"), common stock or cash to the Savings Plan. Our
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