Opinion ID: 626080
Heading Depth: 2
Heading Rank: 1

Heading: The Delta Plan: Two Types of Defined Benefits

Text: The Delta Plan is a defined benefit pension plan. The Plan provides two types of defined benefits: (1) retirement benefits under Article Five for employees who retire directly from Delta, and (2) termination or deferred vested (hereinafter termination) benefits under Article Six for certain employees who terminate employment from Delta for any reason other than retirement or death. As to the first type, a Plan participant is eligible to receive retirement benefits upon attaining age 52. A participant who retires between ages 52 and 65 takes early retirement, while a participant who retires at or after age 65 takes normal retirement. If a participant chooses to commence payment of his benefits between the ages of 52 and 65, his benefits are actuarially reduced. By contrast, if a participant waits until age 65 to commence payment, he receives a larger benefit amount, or normal retirement income benefit. The Plan also states that a Participant's retirement income benefit under the Plan shall become non-forfeitable no later than the Participant's Normal Retirement Date. As to the second type of defined benefit, a Plan participant is eligible to receive termination benefits upon (1) completing at least five years of continuous service or reaching age 52, and (2) then terminating employment for a reason other than retirement or death. A participant commences receiving termination benefits similarly to retirement benefits. That is, a participant receives a larger monthly benefit by waiting to draw benefits until age 65, but if he draws benefits between the ages of 52 and 65, his monthly benefit is actuarially reduced. The Plan also states that if a Participant has a termination of employment with Delta (i) after attaining age 52 or (ii) after completing 5 years of continuous service, the Participant shall be 100% vested in his or her Accrued Benefit under this Plan. In both types of defined benefits, the benefit amount is determined using a Social Security offset, as discussed later.