Northwest Airlines and its pilots will discuss freezing their pension plan because of concerns it might not provide the benefits promised.þþIn an e-mail message to pilots on Friday, the Air Line Pilots Association said union leaders would talk with the airline about freezing the current defined-benefit plan and starting a defined-contribution plan, as well as a disability plan funded by the company.þþFreezing a plan means that it will accept no new members and that the company will not make additional contributions. Such a change could help the airline, based in Eagan, Minn., reach its goal of cutting annual labor costs by $950 million.þþUnder the defined-contribution plan suggested by the Northwest pilots, the airline would contribute a specific amount to each employee's pension account during his or her employment. Delta Air Lines made a similar move last year, allowing retired pilots to receive payments from the frozen plan. Current Delta pilots will receive payouts from both the new and old plans.þþIn November, Northwest pilots signed a new contract that cut $265 million in costs, partly through wage cuts. Once managers reach new contract deals with other unions, they will return to pilots for a second round of concessions. þþþþ
Source: NY Times
