Delta Airlines 2005 Annual Report Download - page 105

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Table of Contents
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
impacted. For additional information, see "Payment of Insurance Benefits to Retired Employees" and "Liabilities Subject to
Compromise," in Note 1.
Defined Benefit Pension and Other Postretirement Benefit Plans
We sponsor both funded and nonfunded noncontributory defined benefit pension plans that cover substantially all of our
employees. We use a September 30 measurement date for all our benefit plans.
Effective December 31, 2005, future pay and service accruals under our qualified and non-qualified defined benefit pension plans
(collectively, the "Nonpilot Plan") for nonpilot employees ("nonpilot employees") were frozen. The Nonpilot Plan provides a
retirement benefit based on a combination of a final average earnings formula and a cash balance formula, subject to the terms of that
plan.
Our defined benefit pension plans for pilots (collectively, the "Pilot Plan") generally provide benefits based on years of service and
final average salary. Effective December 31, 2004, the Pilot Plan was amended to freeze service accruals. Future employee earnings
continue to be used in the calculation of pilots' pension benefits under the Pilot Plan. Under the Pilot Plan, Delta pilots who retire can
elect to receive 50% of the present value of their accrued pension benefit in a lump sum in connection with their retirement and the
remaining 50% of their accrued pension benefit as an annuity after retirement. While the Pilot Plan is currently prohibited from
making the lump sum payments, it is currently projected that the lump sum feature would again become available to pilots in October
2006 if the Pilot Plan is not subject to termination proceedings prior to that date.
We also sponsor healthcare plans that provide benefits to substantially all Delta retirees and their eligible dependents. Benefits
under these plans are funded from our current assets and are subject to co-payments, deductibles and other limits as described in the
plans. Nonpilot employees who are hired on or after January 1, 2003, or who retire after January 1, 2006 regardless of their date of
hire, are not eligible for company provided post retirement healthcare coverage, although they may purchase such coverage at full
cost. Additionally, pilots hired after November 11, 2004 are not eligible for company provided post-age 65 healthcare coverage,
although they may purchase such coverage at full cost. F-43