• PBGC Estimate Clarification Q&A
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Dear Members,

PBGC Estimate Clarification

Based upon questions I have received from flight attendants who have received their PNBGC estimates and the seminar in Charlotte on September 27 - 28, 2006, listed below are some questions and answers that I hope will assist flight attendants in clarifying the estimate you received in the mail.

1. Why does it say I was terminated from US Airways?
The pension plan was terminated on January 10, 2005. As far as the PBGC is concerned, it does not matter if you are still working for US Airways, as you are not accruing pension credits toward retirement since the judge terminated the program.

2. That's not my hire date!
The date represented on the statement is the date you went on payroll at the airline. That is when you began earning pension credit toward retirement. In most cases it is the date you graduated from training.

3. What are the assumptions of the retirement estimate?
The retirement estimate is the first look that the PBGC has given us at what you might be receiving from them. They are still auditing the books and a final determination will be mailed in 2007 or 2008. This estimate shows what you would receive if you began receiving your pension at age 65 and you were single. If you are married the next notice you will receive will be a final determination and will reflect your married status. Your final determination letter may be $5-10 more, if you are single, but not guaranteed.

4. I though I could retire at 62 without a penalty?
As long as you had 10 years of credited service with US Airways by January 10, 2005 you can begin drawing your PBGC pension without a penalty unless you are former PSA. PSA's pension formula does not let you draw a pension until you are 65 without an early withdraw penalty.

5. What about the Social Security offset?
The Social Security offset is reflected in your estimate for a single person. If you are married when you get the final determination there will be another deduction. The Social Security offset is just part of the formula and is LOOSELY based upon Social Security. The PBGC does not have access to your Social Security records or your spouse's. The offset is based on an old Social Security formula and does not reflect cost of living increases that Social Security has given. It also does not reflect you spouse's true earnings if they are a high wage earner.

6. Is this all I get?
You will receive your PBGC pension that is reflected on line 21 of your PBGC estimate. You will also get your full Social Security as outlined in the Social Security statement you receive about a month before your birthday each year. You can also draw from your 401K, Roth IRA or any other retirement contribution program you are contributing to. Remember that Fidelity Investments, who manages our 401K program, offers retirement planning services. You can contact them directly for assistance.

Paul H. Frishkorn
AFA MEC Benefits Chairperson
PFrishkorn@afusairways.org

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