AFA US Airways MEC E-Line - "Staying Informed"

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2002 Archived - E-Lines

• US Airways & Employee Conference Call - February 14, 2005
• Notes from the PBGC Meeting on 2/14/05
• Accessing The Hub
• AFA Local Numbers

AFA: Julie Tierney

Company: John Hedblom, VP Human Resources; Curt Slawson, Asst General Counsel; Karolin Cheboski, Director Benefits Strategy & Design; Tom Antonielli, Mgr Retirement Benefits

Employees:  111 employees; 26 able to ask questions. Several participants asked more than 1 question as one issue led to another.

Discussion:

A standard disclaimer was read prior to the start of the meeting. The focus of the meeting was to address questions from active employees who are anticipating retirement March 1, 2005. It is of the utmost importance for employees considering retirement to stay informed of changing events. Updates will be posted on the HUB (http://theHUB.usairways.com), PBGC website (www.pbgc.gov) and AFA's website (www.afausairways.org). A large percentage of the calls were from IAM members and their questions were specific to their retirement plan. The following topics are relative to Flight Attendants.

COBRA:

Pre-65 retirees are eligible for COBRA insurance and this insurance is eligible for the HCTC. Flight Attendants who elect to cash out their sick bank and not participate in the "access" plan are eligible for 18 months of COBRA coverage. The dental coverage is not eligible for the HCTC.  **Retired Flight Attendants who elect to stay with the company insurance ('access' plan) are ineligible for the HCTC.**

Post-65 retirees are eligible for prescription coverage for the duration of 2005 through Caremark/AdvancePCS. Additionally, post-65 retirees are eligible to purchase medi-gap insurance on their own through The Hartford. This is not a company sponsored plan and prescriptions are not included.

**The company has every intention of remaining in business. However, in the event the company would liquidate COBRA no longer exists. Each retiree and active employee would need to purchase insurance on their own. It must be stressed the company has every intention of remaining in business.**

HCTC:

Retirees who are eligible for the HCTC must fill out an application. The HCTC is not automatic. The form is available at HERE -> http://www.afausairways.org/Benefits/PBGCForm700.pdf or at www.irs.gov enter 'HCTC' as the keyword and then click on 'forms'.  On a monthly basis the PBGC will send a roster of participants who are between the age of 55 and 65 and who are in PBGC pay status to the IRS. In addition to the age requirement and the PBGC pay status, the retiree must not be eligible for Medicare and the plan must be a qualified plan.

Life Insurance:

Retirees are eligible to purchase life insurance until age 65 per our collective bargaining agreement. However, Life Insurance is not HCTC eligible.

March 1 Retirees:

Flight Attendants who are retiring March 1, 2005 must fill out PBGC form 700 and mail it to the PBGC or fax @ 1.305.889.0235. The form must be received by the close of business on February 28, 2005. It must be stressed that a realistic timeframe for the March 1, 2005 retirees to receive their pension checks is not definitive. The PBGC must perform pension calculations and process the paperwork. The delay in receiving a pension check might be several months. However, once payments begin they will include retroactive payment.

My Commentary:

The purpose of these conference calls is to address questions for retirees and those considering retirement. This is a valuable opportunity to have management answer your concerns. Additionally, by listening to the questions of others individuals might be able to gather knowledge of topics not thought of previously. I urge anyone who has the ability to dial in. The schedule for future conference calls is posted on theHUB and at www.afausairways.org/Eline/feb13_05.htm.

Notes from the PBGC Meeting on 2/14/05

"There are two points to stress. State Street Bank assumes responsibility for the retirement plan on May 1, 2005. This does not mean that Flight Attendants who are retiring during this transition time will receive their checks on May 1, 2005 with retroactive. The May 1 date is not a realistic time frame for the calculation of benefits to be performed. Once the PBGC processes the paperwork and performs calculations, checks will be mailed to the individuals with retroactive payment. It must be stressed there is not a definitive date for the flight attendants retiring during the transition to receive a pension check. Flight Attendants who are retiring later in the year should not experience a delay in receiving their pension checks. Again, only those who are retiring during the transition will see a delay in receiving pension checks.
 
Once calculations have been made the Flight Attendants will receive a Letter of Determination from the PBGC informing the Flight Attendants of their monthly benefits. In the event the Flight Attendants believes a miscalculation has occurred the Flight Attendant has 45 days to appeal. The appeal must be postmarked 45 days from the date of the Letter of Determination."

Julie Tierney
JTierney@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 724-695-3329
Council 41 DCA 703-690-6859
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

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