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

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AFA US Airways MEC E-Line

July 28, 2005

In this E-Line

VFLR II and Retirement
Accessing The Hub
AFA Local Numbers

Dear Members,

Paul Frishkorn, our MEC Benefits Chair has sent out some information that you may find useful regarding the VFLRII vs. Retirement with regard to their separate incentives.

Teddy

MEC President

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VFLR II and Retirement

There have been several questions about flight attendants who would like to take the VFLR II and then retire. Please read carefully the items listed below before making your decision.

1. If you take the VFLR II you do not retire off of it, you must resign your position with the company.

2. Once you resign you will not be eligible for health insurance under the Access Plan Health Insurance until age 65. You would also not be eligible for the sick bank cash out

3. The flight attendant would be eligible to receive COBRA Benefits while on VFLR II, but those only last 18 months. You may have difficulty finding a medical plan if you have a pre-existing condition at an affordable price. This is especially true if you live in one of the 10 states that do not have a qualified health plan under the Health Care Tax Credit (HCTC) program. Please contact the HCTC program directly for information about your options.

4. You will not have a term pass that is a retirement term pass traveling at S3 status. Your travel pass will be that of an S4 status. There may be tax consequences associated with these types of term pass privileges.

Clarification to #4 regarding Travel Pass "boarding priority status", please note that those f/as on a VFLR who have less than 20 years service will have a "boarding priority status" of S4. Those f/as who are on a VFLR who have 20 or more years of service will have a "boarding priority status of S3 (same as active). There may be tax consequences associated with these types of term pass privileges on the VFLR.

Furthermore, if a flight attendant has 25+ years of service and is age 45 the flight attendant is eligible for travel on other carriers once the flight attendant reaches age 55 and resigns employment with US Airways.

All flight attendants who were vested (5 years) are entitled to a retirement benefit from the PBGC at retirement age.

5. If you signed up for the Early Retirement Incentive, you would lose your $300 per month payment from age 55 to age 65.

The Association of Flight Attendants (AFA) is making the above information available to answer questions that are being received in the office. It does not construe an opinion that a flight attendant should take one plan or the other. Each flight attendant must make up his or her mind based upon individual circumstances.

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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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