In This Edition of the E-Line Dear Flight Attendants AFA Voter Participation Report Air Midwest Express Crash Ballot Instructions Reminder AFA Voter Participation Report PBGC Benefit Guarantees FAQ's New Sick Leave Policy  Restructuring Agreement Revision Questions

Don't pass rumors. Get the facts. Stay informed. If you have questions or suggestions for the MEC or LEC Officers, use this FORM.

Dear Flight Attendants:

I am writing this message to you to address several issues.  First of all, there is a ballot currently out on Revisions to our Restructuring Agreement.  The voter turnout to date is very low.  I believe that each of you has an interest in the outcome of this ballot. There is no doubt that this is, by far, the worst ballot you may have ever been asked to vote on, but regardless of that each of you should cast your ballot.  Either vote for or against this but please exercise your right to vote.

There is also a rumor circulating that if you don't vote, your "non-vote" will be counted as a "for" vote.  This is NOT true.  The only votes that are counted are the votes that are actually cast by the members.  If 5,000 of you do not vote that simply means the outcome will be determined without your vote.  The only way your vote is counted is if you actually vote.  The current ballot will be counted on January 10.  If you have not already done so, please cast your ballot and let your voice be heard.  The outcome of this ballot should not be determined by anything less than on overwhelming majority of you.

Another issue of great concern relates to a recent CBS message regarding ACARS.  The Company has implemented new software for ACARS.  The new software is of no benefit to any crewmembers-flight attendants or pilots.  It will reduce how much time we are paid since we will no longer be paid from door closure/brake release.  We will not be paid until the aircraft actually starts to move.  So if the door closed and the plane doesn't move for 30 minutes or longer, no flight time will be recorded.  The Company claims this is so they can better track taxi times but we all know this is yet another way the Company can screw crewmembers.  Think how much time the Company will no longer have to pay us under their new and "improved" ACARS software.

Also, there are rumors that any work rules changes will automatically go away when the term of the restructuring agreement is over.  That is NOT correct.  Any work rule changes implemented as a result of the revisions to the restructuring agreement are permanent and will only change if negotiations with the Company result in changes to those work rules at some point in the future.

Many of you have expressed concerns about the proposed reserve system and about the new system for claiming sick leave.  Because of the fact that we have a variety of options (55 hour, 75 hour, non option, 95 hour and 105 hour) at our airline, the time-balancing type of system that is in front of you for a vote will have many difficulties being implemented.  Even if the ballot passes, the Company and AFA will have to sit down again and try to work through some of the issues created by the Company's desire for a time-balancing system and the fact that we have a variety of options.  Changes will have to be made in order for the system to work.  In addition, the sick leave system does treat reserve flight attendants far less favorably than other flight attendants and this must also be addressed with the Company.  Unfortunately, we will have to wait and see what the outcome of the ballot is before those issues will be addressed.

Sincerely,

Perry Hayes
MEC President

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AFA VOTER PARTICIPATION REPORT
AFA US Airways Revisions to Restructuring Agreement Ratification

                     Eligible  Cast   Percent
USA / BOS ------  259 -- 102 -- 39.4%
USA / CLT  ------ 2135 -- 880 -- 41.2%
USA / DCA ------   520 -- 209 -- 40.2%
USA / LGA ------   127 --   41 -- 32.3%
USA / PHL ------ 2884 -- 1128 -- 39.1%
USA / PIT  ------ 2053 --   895 -- 43.6%
TOTAL ----------  7978 --  3255 -- 40.8%

-- Of the 3255 ballots cast, 2344 (72.0%) were cast via IVR, and 911 (28.0%) were cast via WEB.
-- There was 1 ballot cast in which the voter did not select any options.

Report generated: 01/08/2003 09:56:58 (eastern)

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Air Midwest Express Crash

Dear Flight Attendants,

As you may be aware by now, one of our express carriers crashed shortly after takeoff this morning from the Charlotte-Douglas International Airport.  The Beech 19 aircraft was departing for Greenville, SC and according to news reports was carrying 19 passengers and 2 crewmembers.  According to news reports at this time there are no survivors.  I was contacted by the Company's Flex Alert system shortly after the incident.  I have spoken with Sherry Hendry and in my last conversation with her, she had no more information than the local news.  According to the Company, there are no flight attendants onboard this type of aircraft .  As soon as I receive additional information, I will let you know.

Perry L. Hayes
MEC President
AFA US Airways
http://www.afausairways.org

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Ballot Instructions Reminder

This ratification ballot is being conducted electronically.  You may vote either by telephone or the Internet. In order for your vote to count, you must follow these instructions. To use the electronic ballot system, you must enter an identification number and a PIN number. 

Your Identification # and PIN have been mailed to your home address.  If you do not receive this information by January 2, 2003, please contact AFA at 1-800-424-2401, Extension 777.

Once you have logged into the ballot system, you will be prompted to change your AFA assigned PIN number to ensure the privacy of your vote.  Be sure to remember your new PIN as you will need it if you wish to access the ballot system again.

-- To vote via the Internet, log onto https://www.ballotpoint.com/afa/

-- If you would like to access the Electronic Ballot Voting site from our home page (www.afausairways.org), click the link to the "Online Ballot - Revisions to Restructuring Agreement Ratification", this will link you to the Electronic Balloting site.  

-- Enter your Identification Number and PIN and click “Login.”  Next change your PIN as instructed and remember your new pin number.

-- Click on logout, then login using your new pin number. 

-- From the menu on the left side of the screen, select, “View Ballots”.  Then, click, “Request Ballot.” You will see the Statement of the Question.

-- Mark your vote by clicking on the bullet adjacent to your selection; then click,  "Cast Ballot."

-- You will be given a confirmation number, be sure to write this # down, then click, "Logout."  Your vote has now been cast.

To vote via telephone, access the system by dialing 1-877-AFA-VOTE (1-877-232-8683).  All US Airways Flight Attendants may use this number to reach the voting phone line if calling from a city within the United States or Canada.  Once you reach the voting phone line, you will be prompted for your identification number and PIN.  Use the touch tone keypad on your telephone to enter your responses.  The system will guide you through the process of changing your PIN, selecting the ballot, and casting your vote.  Once completed, the system will give you a confirmation number; be sure to write this down.

After you have voted, you may change your vote if you choose through either the Internet or the telephone method.  You must remember your new PIN to access the system.  Only the last ballot cast will be counted.  If you experience any problems with the voting system, call the AFA Membership Services Department at 1-800-424-2401, Extension 777, between, 9:30 AM to 5:30 PM Eastern Standard Time, in Washington, DC. 

The polls for voting will open at 12:00 NOON Eastern Standard Time on December 27, 2002.  The polls will close at 12:30 PM Eastern Standard Time on January 10, 2003.  The ballots will be tallied after the close of polling on January 10, 2003. Due to the urgency of this decision, please vote promptly.

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PBGC Benefit Guarantees FAQ's

Q. What is the Pension Benefit Guaranty Corporation (PBGC)?
A. PBGC is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to insure and protect pension benefits in private traditional pension plans known as defined benefit plans. If your plan ends without sufficient money to pay all benefits, PBGC's insurance program will pay you a benefit. Our financing comes mainly from insurance premiums paid by companies whose plans we protect, not from taxes. Your plan is insured even if your employer fails to pay the required premiums.

Q. What types of plans are insured by PBGC?
A. PBGC insures defined benefit plans, the type that promise to pay a specific monthly benefit at retirement. PBGC does not insure retirement plans that do not promise specific benefit amounts ("defined contribution pension plans"), such as profit sharing or 401(k) plans.

Q. How can I find out if my pension plan is insured by PBGC?
A. The easiest way is to ask your employer or the plan administrator. Although PBGC insures most defined benefit plans, some are not covered. For example, plans offered by professional service firms (such as doctors and lawyers) with fewer than 26 employees, by church groups or by federal, state or local governments usually are not insured. This booklet covers only single-employer plans, which are normally sponsored by an individual company for the benefit of its workers. PBGC also insures multiemployer plans covering unionized workers of non-related employers in the same industry, such as trucking or construction.

Q. Why do pension plans end?
A. Pension plans usually end for one of three reasons: (1) the employer is having financial problems and can no longer support the plan; (2) the plan has enough money to pay all promised benefits and the employer wants to end the pension plan; or (3) the plan does not have enough funds to pay participants and PBGC decides that it should be ended in order to protect the interests of participants or the PBGC insurance program.

Q. How do pension plans end?
A. Employers can end (terminate) pension plans in one of two ways.
 
In a standard termination, an employer ends a fully funded plan after showing PBGC that there is enough money to pay all benefits. The plan will provide the benefits owed either by purchasing an annuity from an insurance company which will provide periodic payments for life or, if your plan allows, all at once in a lump-sum. Your plan administrator must tell you what insurance company or companies your plan is considering as a possible annuity provider before making a final selection. PBGC's guarantee ends when the employer purchases the annuities or otherwise pays you the value of your pension.

In a distress termination, an employer ends a plan that does not have enough money to pay all benefits owed. To do so, however, the employer must prove to PBGC that the business is financially unable to support the plan. PBGC takes over the plan as trustee and uses its own assets and any remaining assets in the plan to make sure that current and future retirees receive their pension benefits, within the legal limits.

Under certain conditions, PBGC may terminate a pension plan, on its own initiative. PBGC can take such action if, for example, a plan does not have sufficient assets to pay benefits currently due.

Q. How will I know if my pension plan is ending?
A. If your employer wants to end the plan, your plan administrator must notify you in writing that your plan is ending at least 60 days before the "termination" date. This notice is called the Notice of Intent to Terminate. If PBGC is terminating the plan, we notify the plan administrator and often publish a notice about our action in local and national newspapers.

Q. What other information should I receive?
A. In a standard termination, you should receive a second letter, called the Notice of Plan Benefits, describing the benefits you will receive.
In a distress termination, the plan administrator will send PBGC information about your benefits. We will figure the amount of your benefit that is guaranteed and inform you of it in writing.

Q. Can I earn additional benefits after my plan ends?
A. No. After the plan ends, you cannot earn additional benefits.

Q. What happens when PBGC takes over my plan?
A. PBGC reviews your plan's records to determine what benefits each person will receive.

If you are already retired and receiving benefits, we will continue paying you without interruption during our review. These payments will be an estimate of the benefits that PBGC can pay under the insurance program, and they may be less than you were receiving from your plan.
 
If you have not yet retired, we will pay you an estimated benefit when you become eligible.

Once we complete our review, we will tell you in writing what your pension amount will be and what rights you have to appeal our decision.

The pension benefit PBGC pays depends on (1) provisions of your plan, (2) legal limits, (3) the form of your benefit, (4) your age, and (5) amounts PBGC recovers from employers for plan underfunding.

To ensure PBGC has the proper information for all participants, we will contact you periodically to request any changes, such as your new address if you have moved.

Q. What happens if PBGC's estimate is too high or too low?
A. If PBGC underpaid your benefit, we will make it up in a single payment with interest when we have completed our calculations. If we overpaid you, we will reduce future payments until the overpayment has been repaid. The reduction is no more than 10 percent of each payment. If both overpayments and underpayments were made, we will calculate the net overpayment or underpayment.

Q. What is the maximum amount that PBGC can guarantee?
A. PBGC's maximum benefit guarantee is set each year under provisions of ERISA. For pension plans ending in 2002, for example, the maximum guaranteed amount is $3,579.55 per month ($42,954.60 per year) for a worker who retires at age 65. This guarantee is lower if you begin receiving payments before age 65 or if your pension includes benefits for a survivor or other beneficiary. The table at the end of this booklet shows PBGC's maximum guarantee for retirement at various ages.

Q. What benefits does PBGC guarantee?
A. PBGC guarantees "basic benefits," which include (1) pension benefits at normal retirement age, (2) most early retirement benefits, (3) disability benefits for disabilities that occurred before the plan was terminated (for terminations started after December 7, 1994, the reduced maximum guarantee for ages younger than 65 does not affect the benefits received by disabled participants who receive a disability benefit from both the pension plan and Social Security), and (4) certain benefits for survivors of plan participants. PBGC does not guarantee health care, vacation pay, or severance pay.

Q. Are there other limits on PBGC's guarantee?
A. Yes. For example, if your plan was created or amended to increase benefits within five years before it ended, your benefit may not be fully guaranteed. Generally, the larger of 20% or $20 per month of the benefit is guaranteed for each full year the benefit was in effect.

Q. Does PBGC pay survivor benefits?
A. PBGC pays survivor benefits if you retired before your plan ended and your benefit included a survivor benefit, or if you were receiving a survivor benefit before the plan ended. If you are married and begin receiving retirement benefits after the plan ends, unless you and your spouse tell us in writing to do otherwise, we will pay you the benefit during your life, and then pay your surviving spouse a reduced amount. To pay for the cost of the survivor benefit, your monthly benefit is reduced during your lifetime .

If you are married and not yet retired, PBGC will provide a benefit to your spouse if you die before you retire. Your spouse would start receiving this benefit as early as the earliest date your plan states you can retire.

Q. Can I receive my benefit from PBGC in a lump sum or as a monthly annuity?
A. Normally, we pay benefits in monthly payments for life. But, if the monthly benefit is $50 or less, we generally pay on a yearly basis. If the total value of the benefit is $5,000 or less, you will receive a single, lump-sum payment. However, if the benefit is at least $25 a month, you can receive it in monthly payments if you prefer.

Q. Can I put my lump sum into an Individual Retirement Account (IRA)?
A. Yes. If the taxable portion of your lump-sum payment is transferred directly by the plan or PBGC into an IRA, you will not have to pay taxes on your benefit until you begin receiving IRA payments. This deposit is called a "tax-free rollover." For more information about tax-free rollovers and the laws controlling IRAs, call 1-800-TAX-FORM or write the Internal Revenue Service office nearest you.

Q. Will PBGC adjust my pension yearly for inflation?
A. No, there is no cost-of-living adjustment. Your benefit is fixed as of the date your plan ended.

Q. Will my deductions stay the same if PBGC takes over my plan?
A. PBGC only deducts federal income taxes. You will have to pay separately the state taxes and other amounts now being deducted.

Q. If I have other questions about PBGC, how can I find the answers?
A. If you have questions about a pension plan that PBGC has taken over or about our insurance programs and retirement guarantees, contact PBGC's Technical Assistance Branch at 1200 K Street, N.W., Suite 930, Washington, DC 20005-4026, or call us at (202) 326-4000 (not a toll-free number). For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to (202) 326-4000. If you have specific questions about your plan or your benefits, you should first contact your plan administrator or your employer.

PBGC MAXIMUM MONTHLY GUARANTEES [Monthly Guarantee Table can also be found HERE: http://www.afausairways.org/restructure/pbgc_qa.htm]

Maximum Monthly Guarantee

New Sick Leave Policy 
The Company has agreed to hold off on the implementation of the new sick claim policy until March 2, 2003.

Revision Questions
A new input form is being used for any questions you may have on this Revision to the Restructuring Agreement. Please contact your LEC Officer with any questions you may have as well as utilizing this input form. The form is located at http://www.afausairways.org/EForms/prop_input.html.

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