Most defined contribution plans are basically the same. The participant
either makes contributions or the employer makes them for him/her or there
can be a combination of the two. After the money is in the plan, it is
invested (usually with input from the participant) and the risk (and upside)
belongs to the participant. The primary difference between defined
contribution and defined benefit is that with defined benefit, the employer
takes the investment risk and with defined contribution plans the
participant takes the investment risk.

In reality the airlines haven't funded the defined benefit plans adequately
and the benefits won't be there for retirees anyway.. I would much rather
have the money put into the plan and take the investment risk than to not
have the assets in the plan in the first place.

Mike
MU-2


"Kate" wrote in message
oups.com...
I understand Delta pilots approved the creation of a new defined
contribution plan to replace the defined benefit plan in November. Does
anyone know what this plan looks like, how it will be structured and
how pilots pensions will be affected?