|
Dear Members,
SEPARATION PACKAGE (SEP) Q AND A #2
Since the first AFA SEP Q and A Flight Attendants have asked additional question
regarding the SEP. This Eline will seek to answer those questions. You can also
review Q and A #1 by clicking on the following link:
http://www.afausairways.org/Eline/oct29_07.htm#faq
Q- When is the deadline for submitting a SEP application and bid form?
A- The deadline is December 12, 2007 at 2359 EST.
Q- Where can I find the SEP application and bid form?
A- The complete SEP information package can be found on the hub via the
following link:
http://thehub.usairways.com/divisions/operations/inflight/SEP/SEP.htm
Q- If I submit a SEP application can I change my mind?
A- Yes and no.
The Age Discrimination in Employment Act of 1967 provides that a group of
employees offered an "exit incentive" must be given a period of 45 days within
which to consider the offer. After submitting a SEP application and within the
45 days you have seven (7) days to revoke the application. The 45 day 'window'
ends on December and therefore, if you submit your application on December 12
you will have no opportunity to revoke your application on December 13.
Q- I have heard that if bid for and am awarded a SEP and I am eligible to
retiree and collect my PBGC benefit I will not receive the $20,000 payout-Is
that true?
A- Absolutely not. If you are eligible to retire and are awarded the SEP you
will receive the $20,000 payout. In fact, the way the Company constructed the
eligibility requirement for the SEP, the Company is hoping that a greater
percentage of senior members who are eligible to retire apply for the SEP. The
Company issued the following clarification this week:
We have received some calls regarding the ability to retire AND take the
separation package. Those flight attendants who are awarded the separation who
also qualify for retirement (55 years of age or 52 for Shuttle) will be sent
retirement papers along with their separation award letter so the two dates
(separation and retirement) may be matched. Please contact your operational
supervisor if you have any eligibility questions.
Q- What Healthcare options are available following my separation or
separation and retirement?
A- There are two options available- COBRA and the Company Access Plan. An
important distinction between the two plans is that COBRA is a sponsored
(eligible) plan under the Health Care Tax Credit and the Company Access plan is
not.
Q- What is the Health Care Tax Credit (HCTC) and how can it help me?
A- The HCTC is a tax credit that can be applied to lower the cost of any HCTC
sponsored plan. Currently the HCTC pays for 65% of the cost of healthcare
premiums, as long as you are enrolled in a sponsored plan and meet the HCTC
requirements. The most important requirement is that you must be receiving PBGC
benefits to be eligible for the HCTC.
There are currently seven states that do not have HCTC sponsored plans-
Delaware, Hawaii, Mississippi, New Mexico, Nevada, South Dakota and Wyoming.
Below are more information and links to additional HCTC resources.
|
HCTC: Individuals – Overview |
Are You Eligible for the HCTC?
The HCTC is a tax credit that helps a specific population of eligible
individuals. To be eligible, you must meet the eligibility criteria in
the following three steps:
Step 1. Initial requirements - only individuals who receive
certain Pension Benefit Guaranty Corporation (PBGC), Trade Adjustment
Assistance (TAA) or Alternative Trade Adjustment Assistance (ATAA)
benefits are potentially eligible to receive the HCTC.
Step 2. General requirements - there are some additional
general requirements to be eligible for the HCTC.
Step 3. Qualified health plan - individuals must have or be
able to get a health plan that qualifies for the HCTC.
How To Get the HCTC
If you meet all the requirements in the three steps above, then you
are eligible for the HCTC. Once you determine that you are eligible, you
have two ways to receive the tax credit:
1.
Monthly - register for the monthly HCTC and get help paying
for health plan premiums as they become due.
2.
Yearly on your federal tax return - pay your qualified health
plan directly throughout the year, claim eligible premium amounts on
your federal tax return, and receive the HCTC as a tax refund or a
credit against taxes you owe.
Resources
The
HCTC Program Kit is mailed to all potentially eligible
HCTC candidates and provides information on eligibility and how to
receive the credit. This online version, however, does not include the
monthly HCTC Registration Form which is only mailed to HCTC candidates. Get answers to the most common questions about the
HCTC and review a glossary of HCTC-related terms:
Visit
Resources for links to web pages, forms and documents that
will help you learn more about the HCTC.
Go to the
HCTC Overview page. |
Q- If I am eligible to retire will I lose my sick bank?
A- No. Pursuant to Contract Section 22.A.4 you are entitled to the following two
options:
1- Use the sick bank at a rate of $8.20 per hour up to 41 hours per month
($336.20) towards the monthly pre-65 Company (Access Plan) retiree medical
benefit premium until such time the sick bank is exhausted. Any sick bank
hours that remain once you turn 65 and are eligible for Medicare will be
forfeited. Since the Company Access plan is not a sponsored plan eligible
for the HCTC it is more likely the following option will be used
2. If you elect COBRA for the statutory 18 month period or are 65 years
or older at the time of retirement you can cash out your sick bank at a rate
of $6.70 per hour.
As with any decision regarding health care choices it is important to
evaluate each plan as it pertains to you, your age and your health condition.
Q- Am I eligible for unemployment compensation if I take the SEP?
A- In all honesty it is difficult to say for certain. Each state has different
eligibility requirement for unemployment compensation. The important thing is to
apply and appeal if unemployment compensation is denied. In some states,
hardship criteria may make SEP participants eligible for unemployment
compensation. Hardship criteria vary from state to state but in general mean
that your job has been relocated to an area more than a designated number of
miles from the current location.
The Union cannot guarantee you will receive unemployment compensation but as
stated above we encourage everyone to apply and go through the respective appeal
processes in each state.
Q- I participate in the Flexible Spending Account (FSA). How will the FSA be
affected if I am awarded the SEP?
A- Health Care FSA is eligible for COBRA continuation (18 months). Dependant
Care FSA ends on the last day of employment.
Q- If I am awarded a SEP will I be paid out for my vacation?
A- You will be paid out for any accrued 2008 vacation not taken and any 2009
vacation accrued in 2008 prior to your release date. You will be paid four (4)
hours for each vacation day if your cumulative total of accrued vacation days
exceeds seven (7) days. If the cumulative total of vacation days is less than
seven (7) days you will be paid three and one-half (3+30) hours for each
vacation day.
None of your accrued 2008 vacation has to be in seven (7) day blocks- it will be
paid at the higher rate if the total number of accrued days exceeds seven (7)
days.
Vacation accrual for 2009 is based on a rate of accrual of 1/12th of your yearly
allotment per month. If that total accrued prior to your release date exceeds
seven (7) days you will be paid out at the higher rate.
Q- I participate in the US Airways, Inc. 401 (k) Savings Plan. What happens
when I take the Separation?
A- There are two aspects to this question.
1) 401(k) deductions - The vacation payout check is eligible for 401 (k)
deductions but the $20,000 cash payout is not.
2) 401(k) distribution - Depending on the account balance in your account
you may have several different options in terms of distribution of the funds
in your account. Once your release date is known you should contact the
Fidelity Service Center to discuss those options. Further information will
be provided in your SEP award package.
Q- The SEP offers travel under two policies 25/45 and the 65-point plan-
what are the differences?
25/45 is a contractual provision (Section 22.I.2) that provides for lifetime
travel as if in active service if you have completed twenty-five years of
service as a Flight Attendant and have attained the age of forty-five (45).
Travel for you and eligible family members traveling with you are set at S3
(active). Company policy also provides for three SA1 passes and eight companion
passes. If you are eligible to retire, you will then receive offline travel in
accordance with Company interline agreements. There is a tax implication
associated with 25/45.
The 65-point plan is Company policy. You are entitled to the plan if your age
and Company service equal 65 (points). The plan is based on months- 24 years and
6 months of service and age 40 years and six months equals 65 (points). Current
Company policy provides for unlimited on and offline travel for you and your
eligible dependents. Boarding priority for online travel is S4 and the current
policy provides for two SA1 passes and four companion passes. There is no tax
liability associated with the 65-point plan.
Please note: A travel card will be issued for both 25/45 and the 65-point
plan. In addition the current reciprocal cabin seat agreements will no longer be
available to you as they require an ACTIVE status.
The Union realizes accepting a SEP award is a life altering decision and there
are many questions and concerns. Please do not hesitate to call or email MEC
Benefits Chair, Paul Frishkorn with any questions or contact one of your LEC or
MEC officers.
Paul Frishkorn can be reached at:
610-544-2875
PFrishkorn@afausairways.org
Your local council office numbers are listed below.
Master Executive Council Officer contact numbers and additional SEP information
are posted on our website at:
www.afausirways.org
Thank you,
Mike Flores, President
The US Airways Master Executive Council
AFA-CWA
~~~~~~~~~~~~~~~~~
AFA USAirways Website
www.afausairways.org
Accessing The Hub:
http://thehub.usairways.com
Logging in the first time your user name is u0(zero) and your five digit
employee number. Your initial password is the first five digits of your social
security number. Questions about the Hub? Please contact the EDS Help Desk at
336-744-6000 for assistance. More information can also be found HERE.
AFA Local Numbers
Council 40 PIT 412-245-1214
Council 41 DCA 703-212-8090
Council 69 BOS 781-289-8454
Council 70 PHL 215-492-0840
Council 82 LGA 315-736-3483
Council 89 CLT 704-527-0325
New Hotline Number Toll Free: 866-USA-AFA2
US AIRWAYS Benefits Information 800-872-4780
Reply to Inflight: askinflight@usairways.com
Got Questions? Get Answers
The *E-Line*
is now in a new and improved format. By updating your profile at unionvoice.org
you will be able to enjoy improved services in the near future! Visit
your subscription management page at: http://www.unionvoice.org/
Got questions about This *E-Line*
from AFA - US Airways or any other Union matter? Do NOT REPLY to the *E-Line*.
PLEASE contact your local AFA officers or committee chairs directly: http://www.afausairways.org/emailaddresses2.htm
Your MEC Officers
Association of Flight Attendants
Hotline & *E-Line*
- US Airways
|
Get all the
latest from the Website http://www.afausairways.org
Call the Hotline 866-USA-AFA2
Encourage your friends to subscribe and receive their own *E-Line*
from AFA - US Airways
|
If you would like to
unsubscribe from E-Line at AFA-US Airways, you can visit your
subscription management page at: http://www.unionvoice.org/
Click on the link below for more
information from your union, online activism and benefits. http://www.unionvoice.org/wfn/join.html
|
|
