Delta recently agreed to return $70 million to the Delta Family Care Disability and Survivorship Trust for the benefit of non-pilots and their survivors. (The pilots have a separate funded trust.) Over a year ago, the Non Pilot 1114 Committee brought it to the attention of Delta and the Bankruptcy Court that the trust agreement for the Disability and Survivorship Trust had never been amended to permit Delta to take severance benefits out of the trust. The Bankruptcy Court ruled that whether or not there was proper authorization, Delta had not violated bankruptcy law, since eligible participants of the Trust continued to receive their disability and survivorship benefit payments without interruption.

This week, Delta reached agreement with the Department of Labor that would allow Delta to clear up any paperwork problems by amending the trust agreement to authorize severance payments. Delta also agreed to return $70 million to the trust at the time the trust would otherwise run out of funds, and Delta amended the trust agreement to provide that the funds in the trust can never revert to Delta. Delta's motion to approve its agreement with the Department of Labor is set for a hearing in the Bankruptcy Court on February 22.

Delta's agreement is great news for those non-pilot participants drawing disability and survivorship benefits, since returning the $70 million means security for many, many more months of benefits. These benefits will continue to come from this separately funded trust, not just from a company in a tough cyclical industry. And Delta's agreement that the trust funds cannot revert to Delta means that no takeover artist in the future can try to use the trust funds after a merger as part of the money to fund its successful takeover campaign. That is also important to the Delta disabled and survivors, especially given USAir's recent (but now withdrawn) takeover offer.

We applaud Delta in reaching this agreement and in strengthening the protections for the Trust, which can continue to provide benefits for Delta people, both active and retired, well into the future.